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.

Discover working conditions in Romania

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.

Discover social security in Romania

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.

Taxation system in Romania

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.

Employment termination in Romania

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.

Education Options for Children

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.

Religious

Second Day of Christmas

A doua zi de Crăciun

December 26

Religious

Why Set Up in Romania

Romania provides EU market access, competitive costs, skilled multilingual talent, and allows 100% foreign ownership in most sectors with a transparent formation process.

Incorporation Timeline & Steps (1–2 Weeks)

Key steps: name reservation, Articles of Association, UBO declaration, registration with Trade Registry (ONRC), tax registration, VAT (if applicable), certificate issuance—often in 1–2 weeks if documents are complete.

Entity Options (SRL / SA / Branch / Rep Office)

Common forms include SRL (most popular), SA, Branch Office, and Representative Office (non-commercial). SRL is preferred due to flexible governance and fast timelines.

Payroll & Ongoing Compliance (Revisal + ANAF)

Before hiring, employers must register with tax/social authorities, set up payroll reporting, and register employment contracts electronically via Revisal; accurate accounting and compliance reduce fines/audit risk.

Business Setup Services

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Living Cost in Romania

Discover the living costs in Romania with our detailed insights, helping you plan your budget and make informed decisions for your lifestyle.

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FAQ

Romania is emerging as a strong European tech hub, known for skilled software engineering talent, fast-growing IT services, and a vibrant startup scene—especially in cities like Bucharest, Cluj-Napoca, and Timișoara. Gini Talent helps companies tap into Romania’s deep tech talent pool by recruiting software engineers, data specialists, and highly specialized IT professionals, while supporting compliant hiring workflows and smooth onboarding. Leverage our AI-driven recruiting tools and local expertise to scale your Romania team efficiently—without the operational burden of building an internal recruitment engine.

Romanian citizens and EU/EEA/Swiss nationals can work freely in Romania without a work permit. Their employment is governed by Romanian labor law.

Yes. Non-EU nationals must obtain a work permit and residence authorization before starting employment in Romania.

Yes. Romania issues a work permit (employment authorization), which must be obtained before applying for a long-stay employment visa.

Common work authorization types include:

Permanent worker permit

Highly qualified worker (EU Blue Card)

Intra-company transferee

Seasonal worker

Seconded worker

No. Employment may begin only after work permit approval, visa issuance (if required), residence registration, and social security enrollment.

Yes. Work permits are generally linked to a specific employer, role, and location. Any changes require notification or a new permit.

Yes. Social security registration is mandatory for both Romanian and foreign employees from the first day of employment.

Mandatory contributions cover:

Public healthcare

State pension

Unemployment insurance

Work accident and occupational disease benefits

Maternity and sick leave benefits

Social security contributions are primarily borne by the employee, withheld and paid by the employer as part of payroll obligations.

Standard working hours are 8 hours per day and 40 hours per week, typically spread over five working days.

Overtime must be compensated with paid time off or, if not possible, additional pay as defined by law or collective agreements.

Employees are entitled to a minimum of 20 working days of paid annual leave per year, regardless of nationality.

No. Public healthcare is mandatory through social security. Private health insurance is optional and commonly used for faster access.

Employment income is subject to flat income tax and mandatory social contributions, withheld and reported through payroll.

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.

There is no general statutory severance pay. Severance may apply if provided by employment contracts or collective agreements.

Yes. Statutory notice periods apply, generally 20 working days for employees, unless otherwise agreed.

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.

Gini Talent’s EOR service enables companies to hire employees in Romania without establishing a local entity. Gini Talent acts as the legal employer and manages payroll, taxes, social security, work permits, and labor law compliance.

Together, Gini Talent and Gini Finance 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.