.png)
Romania has very low employer social costs (just 2.25% CAM) — most contributions are employee-borne. IT sector employees get an income tax exemption. One of the EU's fastest-growing tech talent markets. Rippling handles ANAF, ReviSal, and D112 compliance.
Romania is a fast-growing Central and Eastern European economy and one of the largest tech talent markets in the EU. Bucharest is the primary business hub, with significant tech and BPO clusters in Cluj-Napoca, Timișoara, and Iași. Romania offers competitive salaries relative to Western Europe with a highly educated, multilingual workforce. EU member using the Romanian leu (RON).
| Contribution | Rate | Notes |
|---|---|---|
| Work Insurance Contribution (CAM) | 2.25% | Only mandatory employer contribution; paid on gross salary |
.svg)
| Contribution | Rate | Notes |
|---|---|---|
| CAS (Pension) | 25% | On gross salary; employee-borne |
| CASS (Health Insurance) | 10% | On gross salary; employee-borne |
| Income Tax (CPIT) | 10% flat | On net taxable income after social contributions |
| Taxable Income | Rate |
|---|---|
| All income | 10% flat |
Effective total employee deductions approximately 43–45% of gross. Employer withholds and remits monthly to ANAF. IT sector exemption: 0% income tax for qualifying IT roles on salary up to RON 10,000/month.
Notice: minimum 20 working days for indefinite contracts. Collective redundancy: notification to Labour Inspectorate and Unemployment Agency required. Severance not mandatory by law but common in collective agreements.
Romania exempts qualifying IT employees from income tax (0% instead of the standard 10% flat rate). To qualify: the employer must have a relevant CAEN IT activity code, the employee must hold a qualifying IT role, and the salary must be within the eligible threshold (RON 10,000/month in 2024). This is a major recruitment and retention tool — IT professionals earn approximately 10% more net than peers in non-exempt roles.
ReviSal is Romania's mandatory electronic employment register. Every employment contract must be registered before the employee's first working day. Contract changes (salary, hours, title) must be registered within 20 working days. Fines for non-registration: RON 10,000–20,000 per employee. The Labour Inspectorate actively audits compliance.
Romania shifted most social contributions to employees in 2018. The employer's only mandatory social contribution is CAM at 2.25%. This makes Romania one of the lowest employer on-cost countries in the EU — combined with competitive salaries, it is highly attractive for workforce expansion.
Romania's national minimum wage is RON 3,700/month gross (January 2024), up from RON 3,300 in 2023. The construction sector minimum is RON 4,582/month. Romania has been increasing its minimum wage rapidly as part of EU convergence.
