# Hiring in Romania: employment costs, payroll and compliance

> Machine-readable page from EOR Overview (https://eoroverview.com/), an independent research platform for Employer of Record services.
> Canonical page: https://eoroverview.com/hiring-guides/romania/
> Methodology: how providers are researched, scored and compared is documented at https://eoroverview.com/methodology/.
> Disclosure: EOR Overview is free to use. We may earn a referral fee from some providers; this never affects a rating or ranking position (https://eoroverview.com/disclosure/).
> Statutory data last updated: 2026-02-23. Every figure below carries its own source year.

## Country

| Field | Value |
|---|---|
| Region | Europe |
| Currency | RON (Romanian Leu) |

## Pay & working time

| Field | Value | Source year |
|---|---|---:|
| Minimum wage | RON 4,050 | 2026 |
| Statutory work week | 40 hours/week | 2024 |
| 13th-month salary | none | 2026 |

## Employer cost & tax

| Field | Value | Source year |
|---|---|---:|
| Employer social security | 2.3% | 2024 |
| Employee social security | 35% | 2024 |
| Corporate tax rate | 16% | 2025 |

## Termination

| Field | Value | Source year |
|---|---|---:|
| Notice period | 4 weeks | 2019 |
| Severance pay | 0 weeks | 2019 |

## Leave & time off

| Field | Value | Source year |
|---|---|---:|
| Public holidays | 16 days | 2026 |
| Maternity leave | 18 weeks | 2024 |
| Paternity leave | 11.6 weeks | 2026 |
| Parental leave | 86.3 weeks | 2024 |

## Labour market

| Field | Value | Source year |
|---|---|---:|
| Retirement age | 64 | 2024 |
| Unemployment rate | 5.9% | 2025 |
| GDP per capita | $20,080 | 2024 |
| Union density | 21.4% | 2018 |
| Collective bargaining coverage | 15% | 2017 |

## Overview

Before your first Romanian employee sees a single leu on payday, you need either a registered local entity or an Employer of Record (EOR) in place. There is no shortcut: Romanian labour law requires a legal employer on the ground, and an EOR fills that role without you having to set up a Romanian company. For most foreign businesses hiring one or a handful of people, that makes the EOR route the faster, lower-overhead path.

Romania's labour market has a workforce of around 8.2 million people and an unemployment rate of 5.9%, so talent is available but not unlimited. The statutory work week is 40 hours, the minimum wage sits at 4,050 RON per month in 2026, and the employer's social security contribution is a relatively low 2.25% of gross salary. That low employer-side rate is genuinely unusual by European standards, though the employee-side deduction of 35% means take-home pay looks quite different from gross, which is worth explaining clearly to any candidate you bring on.

## Cost context

Romania's employer cost on top of gross salary is driven almost entirely by the employer social security contribution, which sits at 2.25% of gross. That is a low add-on by European standards and means your total employer cost stays close to the gross salary figure, unlike in many neighbouring countries where employer contributions can push total cost well above gross.

## Things to watch

A few specifics about Romanian employment rules that tend to catch foreign employers off guard:

- Employee deductions are high. At 35% of gross, the employee social security burden is steep. Candidates will scrutinise net pay carefully, so build your compensation conversations around net figures from the start.

- No statutory severance. Romania carries a severance entitlement of zero weeks, which is unusual in the EU context. That reduces your financial exposure when ending a contract, but it does not mean termination is informal. Process and documentation still matter.

- Notice period is four weeks. You must give four weeks' notice when terminating, and employees have the same obligation. Factor this into any project timelines or headcount planning.

- Parental leave is exceptionally long. At 86.3 weeks, Romania's parental leave entitlement is one of the longest in the world. If you are hiring people of parenting age, plan for the possibility of extended absences and understand how the EOR handles cover and continuity during that period.

Providers ranked for Romania: https://eoroverview.com/best/romania/