Romania
GiniTalent simplifies employment in Romania, managing payroll, benefits, taxes, and compliance on one platform.
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Work Permit & Legal Compliance in Romania
Employment is governed by the Romanian Labour Code and immigration rules. EU/EEA/Swiss citizens can work freely; non-EU nationals must obtain a work permit and residence authorization before starting work.
Application Process: Work Permit → D/AM Visa → Residence Permit
Employer applies via the Immigration Inspectorate; once approved, the employee applies for a long-stay work visa (D/AM), then obtains a residence permit after entry. Employment can start only after social security registration.
Types of Work Permits in Romania
The most common is a Temporary Work Permit (up to 1 year, renewable). Longer-term employment may be supported through Permanent residence-based employment, plus special categories like EU Blue Card, intra-company transferees, seasonal and posted workers.
Eligibility & Key Employment Rules
Employers must be legally registered and tax/social-security compliant, and may need to prove the role can’t be filled locally/EU (labor market test unless exempt). Employees need a valid passport, qualifications, contract aligned to labor law, minimum salary thresholds, and a clean criminal record.
Mandatory Social Security Registration (Day 1)
Social security registration is mandatory for Romanian employees from day one, and for foreign employees once work authorization + residence permit are obtained and a local contract is signed—employment cannot legally start without registration.
Contribution Rates (Indicative)
Employee: CAS 25% (pension) + CASS 10% (health). Employer: CAM 2.25% (labor insurance). Contributions are declared and paid monthly via ANAF filings.
Benefits Covered (CAS & CASS)
Once registered, employees gain access to public healthcare, sickness/maternity, work accident coverage, disability benefits, and state pension/retirement rights.
International Agreements (EU + Bilateral)
Romania applies EU coordination rules and has bilateral agreements that can prevent double contributions and allow posting exemptions (e.g., A1 certificate), depending on nationality and assignment structure.
Tax Authority & Who Is Taxed
Romania’s tax system is regulated by ANAF. Employment income earned in Romania is taxed under Romanian rules regardless of nationality; employers handle payroll compliance and withholding.
Income Tax on Salaries (Withholding)
Salary income tax is collected via withholding; the flat personal income tax rate is 10%, applied to gross salary. Employers must calculate, withhold, file, and pay monthly.
Tax Residency (183-Day Rule)
Residents: generally >183 days within any 12-month period (or center of vital interests in Romania) and may be taxed on worldwide income. Non-residents are taxed only on Romania-sourced income.
Tax ID Number (CNP / NIF) + DTAs
Individuals need a CNP or NIF for payroll, salary payments, bank accounts, leases, and reporting. Romania also has DTAs; foreign employees may need a home-country tax residency certificate to use treaty benefits.
Notice Periods (Employee & Employer)
Minimum notice is generally 20 working days for both employee resignation and employer termination (with specific rules for managers and cases).
Probation Termination Rules
Maximum probation: 90 days (non-managerial), 120 days (managerial). During probation, either party can terminate without notice and without severance.
Severance Pay (Not Statutory by Default)
Statutory severance is not mandatory in standard cases, but may apply under collective bargaining agreements, employment contracts, or company policy.
Foreign Employee Exit Steps
Employers must update payroll/social security records and notify immigration where required; foreign employees must obtain new authorization or adjust residence status to avoid penalties/overstay risks.
Public Schools (Free for Residents)
Open to foreign children with valid residence permits; Romanian is the main instruction language, with preparatory programs for non-native speakers; strong availability in major cities.
International Schools (IB/Cambridge/American Diploma)
International curricula include IB, Cambridge (IGCSE/A-Level), American diploma, and French/German national curricula, mainly in Bucharest and several major cities.
Private Schools (Bilingual/Multilingual)
Offer smaller classes, enhanced programs, and bilingual or multilingual instruction (Romanian–English/French/German) with national/international accreditations.
Enrollment Requirements
Usually includes residence permit, passport/ID, transcripts, equivalency recognition (if needed), proof of address; international schools may require placement/language assessments.
Public Healthcare (CNAS) Coverage
Public healthcare is administered by CNAS and applies to all legally employed individuals. Coverage includes hospitals, GPs, emergency care, specialist referrals, maternity/pediatrics, diagnostics, and partially reimbursed prescriptions.
Health Insurance Requirements
Enrollment in public health insurance is mandatory for employees; private or international insurance is optional but often used to access private hospitals and specialists.
Private Healthcare Services (Expat-Friendly)
Private healthcare offers shorter waiting times, English-speaking staff, modern diagnostics, direct specialist access, and high-quality outpatient/inpatient care in major cities.
Emergency Services (112)
Emergency hotline is 112 nationwide; emergency treatment is provided regardless of nationality or insurance status.
Paid Public Holidays
Public holidays observed in Romania. Religious holidays may follow lunar calendars.
| Holiday Name | Local Name | Date | Type |
|---|---|---|---|
| New Year’s Day | Anul Nou | January 1 | National |
| Day After New Year’s Day | A doua zi de Anul Nou | January 2 | National |
| Union of the Romanian Principalities | Ziua Unirii Principatelor Române | January 24 | National |
| Orthodox Good Friday | Vinerea Mare | Variable (April/May) | Religious |
| Orthodox Easter Sunday | Paștele | Variable (April/May) | Religious |
| Orthodox Easter Monday | A doua zi de Paște | Variable (April/May) | Religious |
| Labour Day | Ziua Muncii | May 1 | National |
| Children’s Day | Ziua Copilului | June 1 | National |
| Orthodox Pentecost Sunday | Rusalii | Variable (May/June) | Religious |
| Orthodox Pentecost Monday | A doua zi de Rusalii | Variable (May/June) | Religious |
| Assumption of Mary | Adormirea Maicii Domnului | August 15 | Religious |
| St. Andrew’s Day | Sfântul Andrei | November 30 | Religious |
| National Day of Romania | Ziua Națională a României | December 1 | National |
| Christmas Day | Crăciunul | December 25 | Religious |
| Second Day of Christmas | A doua zi de Crăciun | December 26 | Religious |
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Discover the living costs in Romania with our detailed insights, helping you plan your budget and make informed decisions for your lifestyle.
FAQ
What does GiniTalent’s Romania Destination Guide cover?
GiniTalent helps global companies hire and manage talent in Romania compliantly—covering payroll, benefits, taxes, work permits, and more.
Who can work freely in Romania without a work permit?
Romanian citizens and EU/EEA/ Swiss nationals can work freely in Romania without a work permit . Their employment is governed by Romanian labor law .
Do non-EU nationals need a work permit to work legally in Romania?
Yes . Non -EU nationals must obtain a work permit and residence authorization before starting employment in Romania .
Does Romania issue a separate work permit?
Yes . Romania issues a work permit ( employment authorization ) , which must be obtained before applying for a long-stay employment visa .
What types of work permits are available in Romania?
Common work authorization types include: Permanent worker permit Highly qualified worker (EU Blue Card) Intra-company transferee Seasonal worker Seconded worker
Can employment start before the work permit is approved?
No. Employment may begin only after work permit approval , visa issuance ( if required ), residence registration , and social security enrollment .
Is the work permit employer-specific in Romania?
Yes . Work permits are generally linked to a specific employer , role, and location . Any changes require notification or a new permit .
Is social security registration mandatory in Romania?
Yes . Social security registration is mandatory for both Romanian and foreign employees from the first day of employment .
What benefits does Romania’s social security system provide?
Mandatory contributions cover: Public healthcare State pension Unemployment insurance Work accident and occupational disease benefits Maternity and sick leave benefits
Who is responsible for social security contributions?
Social security contributions are primarily borne by the employee , withheld and paid by the employer as part of payroll obligations .
What are the legal working hours in Romania?
Standard working hours are 8 hours per day and 40 hours per week , typically spread over five working days .
How is overtime compensated in Romania?
Overtime must be compensated with paid time off or , if not possible , additional pay as defined by law or collective agreements .
What annual paid leave are employees entitled to in Romania?
Employees are entitled to a minimum of 20 working days of paid annual leave per year , regardless of nationality .
Is private health insurance mandatory in Romania?
No. Public healthcare is mandatory through social security . Private health insurance is optional and commonly used for faster access .
How are employees taxed in Romania?
Employment income is subject to flat income tax and mandatory social contributions , withheld and reported through payroll .
What determines tax residency in Romania?
Individuals are considered tax residents if they: Have their domicile or center of vital interests in Romania, or Stay in Romania for 183 days or more within any 12-month period Tax residents are generally taxed on worldwide income.
Are employees entitled to severance pay in Romania?
There is no general statutory severance pay . Severance may apply if provided by employment contracts or collective agreements .
Is a notice period required for termination?
Yes . Statutory notice periods apply , generally 20 working days for employees , unless otherwise agreed .
What education options are available for children in Romania?
Families can choose from: Public schools (Romanian curriculum) Private bilingual schools International schools offering IB, British, American, French, and German curricula Mainly available in Bucharest and other major cities.
How does GiniTalent’s Employer of Record (EOR) service work in Romania?
GiniTalent’s EOR service enables companies to hire employees in Romania without establishing a local entity . GiniTalent acts as the legal employer and manages payroll , taxes , social security , work permits , and labor law compliance .
How do GiniTalent and GiniFinance support business setup and operations in Romania?
Together , GiniTalent and GiniFinance provide end-to-end support including recruitment , EOR, company incorporation , accounting , payroll , tax compliance , immigration support , and ongoing corporate compliance — offering a single , integrated market entry solution .
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