Emerging Strength, Evolving Workforce

Capital: Bucharest
Currency: Romanian Leu (RON) – note: Romania is expected to adopt the euro in the future, but RON remains the current legal tender
GDP: The gross domestic product (GDP) in current prices in Romania was 382.85 billion U.S. dollars in 2024
Population: 19.0 million in January 2025
Nationality: Romanian
Languages: Romanian (official); minority languages include Hungarian and Romani
Major Religion: Eastern Orthodox Christianity

Romania is a fast-growing economy in Eastern Europe, supported by EU membership, a favourable business environment, and open investment policies. The country offers a skilled and multilingual workforce, competitive operating costs, and strategic access to European Union markets. Key industries include IT and software services, automotive, manufacturing, agriculture, energy, and tourism.

Major cities such as Bucharest, Cluj-Napoca, Timișoara, Iași, and Brașov serve as important economic and cultural hubs. Romania is attractive to expatriates due to its urban development, diverse natural landscapes, and relatively affordable cost of living, offering a balance between professional opportunities and quality of life.

Romania’s employment framework is governed primarily by the Romanian Labour Code (Law No. 53/2003 – Codul Muncii). The legislation applies across all sectors and reflects European Union labour standards, covering employment contracts, working time, wages, employee benefits, and termination procedures. Employers operating in Romania are required to comply strictly with statutory obligations to ensure lawful and transparent employment practices.

All employment relationships in Romania must be formalised through a written employment contract, which must be concluded before the employee commences work. Employment contracts must be drafted in Romanian and include mandatory terms such as job title, job duties, salary, working hours, workplace location, and leave entitlements.

Employers are required to register employment contracts electronically in the national employee register prior to the employee’s first working day.

Types of employment contracts include:

• Indefinite-term contracts, which are the standard form of employment
• Fixed-term contracts, permitted only under specific legal conditions and generally limited to a maximum cumulative duration of 36 months

The standard working time in Romania is 8 hours per day and 40 hours per week.

The maximum working time, including overtime, must not exceed 48 hours per week on average, calculated over a reference period. Employees are entitled to a weekly rest period, usually granted on Saturdays and Sundays.

Overtime provisions include:

• Overtime should primarily be compensated through paid time off within a legally defined timeframe
• Where compensatory time off is not possible, overtime must be paid at a rate of at least 75% above the employee’s basic salary
• After a 12-hour working day, employees are entitled to a minimum 24-hour rest period

Romania has a statutory national minimum gross wage, established and periodically adjusted by government decision.

As of 2025, the general minimum gross monthly wage is approximately RON 4,050, subject to future revisions. Certain sectors may be subject to specific minimum wage regulations.

Probation periods must be explicitly stated in the employment contract and are subject to statutory limits.

Indefinite-term contracts:

• Up to 90 calendar days for non-managerial positions
• Up to 120 calendar days for managerial roles

Fixed-term contracts:

• Up to 5 working days for contracts shorter than 3 months
• Up to 15 working days for contracts between 3 and 6 months
• Up to 30 working days for contracts exceeding 6 months
• Up to 45 working days for managerial fixed-term contracts exceeding 6 months

During the probation period, either party may terminate the employment contract by written notice without providing justification.

Annual Leave

Employees in Romania become eligible for paid annual leave once they have completed a full year of employment. The statutory minimum entitlement is 20 working days per year, with extended leave provisions available for employees working in hazardous environments or those with recognised disabilities.

Annual leave is fully paid and may be scheduled at any point during the leave year, subject to mutual agreement between the employer and employee. While the law does not require employers to offer more than the statutory minimum, many organisations choose to provide additional leave as part of their benefits package to remain competitive and support employee retention.

Any unused statutory leave must be taken within 18 months following the end of the year in which it accrued. Financial compensation in place of unused leave is permitted only upon termination of employment.

Sick Leave

Sick leave entitlements in Romania are regulated under national labour and social insurance legislation. Employees who are registered contributors to the social insurance system are eligible for up to 183 days of paid sick leave per year, with the possibility of an additional 90-day extension in medically justified cases.

The employer is responsible for covering the first five calendar days of sick leave. From the sixth day onward, sick pay is funded through the National Health Insurance system. A valid medical certificate is required to support all sick leave claims.

Parental Leave

Romanian law provides comprehensive maternity protection for working parents. Female employees are entitled to 126 calendar days of paid maternity leave, which may be divided between the pre-birth and post-birth periods, with a maximum of 63 days allowed before childbirth and 63 days after delivery.

Maternity leave benefits are paid at 85% of the employee’s average monthly income, provided the employee has made the required social insurance contributions. Eligible employees must notify their employer in writing in advance of the expected delivery date.

Additional Statutory Benefits

Romanian employment law requires both employers and employees to contribute to the national social security system, ensuring access to key public benefits.

• Pension Contributions (CAS): Employees contribute 25% of their gross salary towards the public pension system, which funds retirement and related benefits.
• Health Insurance Contributions (CASS): Employees contribute 10% of their gross salary to the national healthcare system, granting access to public medical services.
• Work Insurance Contribution: Employers contribute 2.25% of gross salary to the Work Insurance Fund, which supports unemployment benefits and other labour-related protections.

All residents covered under the national system receive access to public healthcare services through the National Health Insurance House (CNAS), including medical consultations, hospital treatment, and prescribed medication. To complement public coverage, many employers and individuals opt for private healthcare solutions that offer broader service options and shorter waiting times.

Employer social contributions represent a significant component of total employment costs in Romania. Where appropriate, employers may also consider supplementary benefits such as additional pension schemes, life insurance, or enhanced medical coverage. As an employer of record in Romania, we can advise on and facilitate optional private healthcare plans for employees and their dependants, often at preferential rates.

Termination of employment must comply with statutory procedures and be based on valid legal grounds.

Notice periods:

• Employer-initiated termination generally requires a minimum notice period of 20 working days
• Employee resignation typically requires up to 20 working days’ notice, or up to 45 working days for managerial positions, unless the employer agrees to waive or shorten the notice period

There is no statutory severance pay requirement under Romanian law unless severance is stipulated in a collective bargaining agreement or individual employment contract.

Note:

• Employees in essential sectors may be required to work on public holidays. Work performed must be compensated with time off within 30 days, in compliance with the Labour Code. Failure to comply may result in fines.

Please find our Romania office address below:

București Sectorul 1, Bulevardul G-ral Gheorghe Magheru, Nr. 32-36, Scara C, Etaj 2, Ap. 9, Romania 010337

Email: info@linkcompliance.com

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Disclaimer: The content provided on this website is intended for informational purposes only and should not be considered legal or professional advice. Link Compliance makes no representations or guarantees regarding the accuracy, completeness, or reliability of the information, including any translations or interpretations. Laws and regulations are subject to change, and their application may vary. Users are strongly encouraged to consult with a qualified professional or legal advisor to address any specific questions, concerns, or issues arising from the information presented.