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Romania has one of the lowest employer social costs in the EU (just 2.25% CAM), an IT income tax exemption, ReviSal pre-employment contract registration, and one of Europe's fastest-growing tech talent pools. Rippling EOR handles all Romanian compliance.
Romania is one of the fastest-growing technology and talent markets in Central and Eastern Europe. Bucharest is the primary business hub; Cluj-Napoca, Timișoara, and Iași are significant secondary tech hubs. Romania offers a large, English-speaking, highly educated workforce at competitive salaries. EU member using the Romanian leu (RON). EOR is particularly popular with technology, software development, BPO, and financial services companies accessing Romania's talent pool without forming a local SRL.
Setting up a Romanian SRL requires Trade Register registration, minimum RON 200 share capital, ANAF employer registration, Labour Inspectorate registration, and ReviSal access. EOR is recommended for 1–10 employees or where ReviSal compliance (mandatory contract registration before start date) is a barrier. Romania's active Labour Inspectorate and D112 monthly declaration requirements make EOR valuable for companies without local HR expertise.
CAS (pension): 25% of gross salary. CASS (health insurance): 10% of gross salary. Income tax (CPIT): 10% flat on net taxable income after social contributions. Total employee deductions: approximately 43–45% of gross. IT sector income tax exemption: 0% income tax for qualifying IT roles on salary up to RON 10,000/month.
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CAM (Work Insurance Contribution): 2.25% of gross salary — the only mandatory employer social contribution. Romania shifted most social contributions to employees in 2018. Total employer on-cost: approximately 2.25% plus supplementary benefits. This is one of the lowest employer contribution rates in the EU.
10% flat income tax on net taxable income (after CAS 25% + CASS 10% deductions). Effective total employee deduction from gross: approximately 43–45%. IT exemption: 0% income tax for qualifying IT roles. Employer withholds monthly and remits to ANAF via D112 declaration by the 25th of the following month.
Annual leave: minimum 20 working days per year. Public holidays: 15 days per year. Maternity leave: 126 days (63 pre-birth + 63 post-birth) at 85% of average monthly income via CNAS. Parental leave (concediu crestere copil): 2 years (3 for child with disability) at 85% of net income capped at RON 8,500/month. Sick leave: employer pays first 5 days; CNAS from day 6 (up to 183 days).
Minimum notice: 20 working days (employer-initiated, indefinite contract). Collective redundancy thresholds trigger notification obligations to Labour Inspectorate and Unemployment Agency. Severance: not required by law; common in collective agreements. Probation: either party can terminate without notice during the probation period.
EU/EEA nationals: free right to work in Romania; registration with the local municipality (evidența persoanelor) within 3 months. Non-EU nationals: work permit (aviz de angajare) required — annual quota system applies. Skilled worker and ICT permit categories available. Processing time: 2–3 months. Rippling EOR supports permit applications through its Romanian entity.
Statutory: CNAS health insurance (paid by employees via CASS 10%), CAS pension (paid by employees 25%), sick leave (employer 5 days; CNAS thereafter), 20 days annual leave, 15 public holidays, maternity 126 days at 85% via CNAS, parental leave 2 years at 85% of net income.
Market-standard supplemental: meal vouchers (RON 40/day — near-universal), private health insurance, holiday vouchers (RON 1,600/year), remote work, training budget. IT sector income tax exemption is a key recruitment tool.
Rippling EOR Romania operates through a local Romanian entity. Key Romania-specific handling: ReviSal pre-start contract registration, D112 monthly ANAF declaration, IT sector income tax exemption calculation, meal voucher tracking, CNAS sick pay and maternity coordination, and Labour Inspectorate compliance.
All Romanian employment contracts must be registered in ReviSal before the employee's first working day — not on the day, before it. Any contract changes (salary, hours, job title, location) must be registered within 20 working days. Fines for non-registration: RON 10,000–20,000 per unregistered employee. The Labour Inspectorate actively audits compliance. Rippling EOR handles ReviSal registration as part of the standard onboarding process.
Romania's IT income tax exemption applies to employees in qualifying IT roles at companies with relevant CAEN IT activity codes. Qualifying employees pay 0% income tax (instead of 10%) on salary up to RON 10,000/month. This makes Romanian IT salaries more competitive net-of-tax. Rippling EOR identifies and applies the IT exemption for qualifying employees from day one.
Romania's minimum notice period is 20 working days for indefinite contracts (employer-initiated). Collective redundancy (at least 10 employees over 30 days for companies with 100–299 employees; other thresholds apply): requires notification to the Labour Inspectorate and Unemployment Agency. Severance is not required by law but is commonly included in collective agreements.
Romania has 15 public holidays per year — one of the highest in the EU. If a public holiday falls on a weekend, the following Monday is typically a working day off (recuperare). Some holidays vary by religious calendar (Orthodox Easter-related days). Rippling EOR manages the Romanian public holiday calendar automatically.
