Hire employees in Romania
What a foreign company needs to know before employing people in Romania: whether you need a local entity, why the employer pays only 2.25% on top of salary while the employee bears most contributions, how REGES-ONLINE and the monthly D112 return work, what changed with the 2025 and 2026 fiscal packages, and why the temporary agency rules shape how you structure a hire. Written for CHROs, CFOs, General Counsel and founders.
Quick answers
The questions leadership teams ask first.
Do I need a local entity in Romania to hire?
No. There are three routes:
- Employer of Record. Dryft Global employs the person in Romania through a compliant local employer, registers the contract in REGES-ONLINE before day one, files the monthly D112 return and runs payroll. You direct the work.
- Direct local entity. You form a limited liability company (SRL), register with ANAF and set up REGES-ONLINE and payroll: plan for several weeks before the first payroll.
- Independent contractor. Lawful only for genuinely independent work that meets at least 4 of the 7 Fiscal Code tests. Undeclared work fines are RON 40,000 per person from 2026.
When should I use an EOR instead of registering locally?
Use an EOR for your first engineers, shared services staff or sales people in Romania, when you want to start in days and do not want to build REGES-ONLINE registration and the monthly D112 filing yourself. Your own entity earns its keep for a sustained team or a sales office signing Romanian contracts.
What does an employee actually cost beyond salary?
Statutory employer cost is only 2.25% of gross salary, the work insurance contribution (CAM). Since 2018 Romania has placed almost all contributions on the employee: 25% pension (CAS) and 10% health (CASS) are withheld from gross pay. Meal vouchers and private medical are customary and take the all-in employer figure to about 9%.
How difficult is termination in Romania?
Dismissal is allowed only on statutory grounds: misconduct after a disciplinary investigation, medical incapacity, professional inadequacy or redundancy. Notice is at least 20 working days except for disciplinary dismissal. There is no statutory severance, but an unlawful dismissal is void and can lead to reinstatement with back pay, so procedure matters. Mutual agreement is the common clean exit.
Can Dryft Global legally employ my team in Romania?
Yes. Dryft Global employs your team in Romania through a compliant local employer structured for the temporary agency work rules. We issue Labour Code contracts, register them in REGES-ONLINE, file D112 and pay tax and contributions by the 25th, administer sick leave and meal vouchers, and manage notice and dismissal.
Hiring routes compared
Speed, set-up burden and liability differ by route.
| Factor | Direct local entity | Dryft Global EOR | Independent contractor |
|---|---|---|---|
| Time to first payroll | Several weeks | Days to 2 weeks | Days |
| Local entity required | Yes, SRL or branch | No | No |
| D112 and REGES-ONLINE | Your registrations | Handled by Dryft Global | Contractor's own |
| Temporary agency rules | Not applicable | Structured compliantly by Dryft | Not applicable |
| Statutory liability | Direct corporate exposure | Assumed by Dryft Global | High if the work is dependent |
| Best fit | Sustained team, local sales | First hires, engineering teams | Short independent projects |
What an employee costs in Romania
Romania has one of the lowest employer contribution burdens in Europe, because pension and health contributions are paid by the employee out of gross salary. The model below is a Bucharest software engineer on RON 15,000 gross a month in 2026.
| Component | Employer share | Notes |
|---|---|---|
| Work insurance contribution (CAM) | 2.25% | The only general employer contribution |
| Social insurance (CAS, pension) | None | Employee pays 25%, withheld |
| Health insurance (CASS) | None | Employee pays 10%, withheld |
| Statutory subtotal | 2.25% | Above gross salary; no ceiling |
| Meal vouchers (20 days) | ~6% | Up to the legal cap, RON 45 per day at the time of writing |
| Private medical subscription | ~1% | Typical market budget |
| Total employer on-cost | ~9% | Above gross salary |
For an employee on RON 15,000 a month, budget roughly RON 196,650 (about EUR 36,800) a year all-in before the EOR fee. The employee's own deductions are 25% pension, 10% health and 10% income tax, leaving net pay of about RON 8,775 a month, so candidates often compare offers on net pay. Ask us for a cost model with current rates applied.
Payroll and tax
Salaries are paid at least monthly in lei. The employer withholds income tax, CAS and CASS and files Declaration 112 (D112), with payment of tax, contributions and CAM, by the 25th of the following month. Every contract must be recorded in the REGES-ONLINE register of employees by the day before work starts, with salary changes recorded within 20 working days and terminations by the termination date.
Income tax withholding
Salary income is taxed at a flat 10% after contributions and allowed deductions. A personal deduction applies only to employees earning up to the minimum wage plus RON 2,000, with an extra deduction for employees under 26 and RON 100 a month per child in school. The IT and construction income tax exemptions ended on 1 January 2025, so standard rates now apply in every sector.
Minimum wage 2026
The national gross minimum wage is RON 4,325 a month from 1 July 2026, up from RON 4,050. Full-time employees on the minimum wage get a RON 200 tax-free amount (RON 300 until June 2026). The construction sector keeps a higher minimum of RON 4,582 a month.
Leave and mandatory benefits
- Annual leave. At least 20 working days a year, excluding public holidays.
- Public holidays. 17 entitlements a year, including Orthodox Easter and Pentecost, which fell on 16 distinct dates in 2026.
- Sick pay. Since 1 February 2026 the first day is unpaid. The employer pays days 2 to 6 and the health insurance fund pays from day 7, at 55% to 75% of the base depending on length of leave.
- Maternity. 126 calendar days at 85% of average income, paid by the health insurance fund, not the employer.
- Paternity. 10 working days at full salary, or 15 with a childcare course, paid by the employer.
- Child-raising leave. Until the child turns 2, paid by the state, with dismissal barred during the leave.
- Working time. 40 hours a week. Overtime is compensated with time off within 90 days, or a premium of at least 75%.
- Telework. Agreed in the contract or an addendum, with equipment and cost sharing set out.
- Common extras. Meal vouchers, private medical, extra leave days and voluntary pension contributions.
Termination and notice periods
Probation can last up to 90 calendar days, or 120 for management roles, with termination by written notice and no reason needed. After that, notice works as follows.
| Item | Rule |
|---|---|
| Employer notice (incapacity, inadequacy, redundancy) | At least 20 working days |
| Disciplinary dismissal | No notice |
| Employee resignation | Up to 20 working days (45 for managers) |
| Statutory severance | None; only by contract or collective agreement |
| Unlawful dismissal | Void: reinstatement, back pay and damages |
- Statutory grounds only. There is no at-will dismissal in Romania.
- Investigate first. Disciplinary dismissal needs a prior investigation, a decision within 30 days of learning of the breach and within 6 months of the act.
- Protected periods. No dismissal during sick leave, pregnancy, maternity, paternity or child-raising leave, carer leave or annual leave.
- Collective redundancy. Thresholds start at 10 employees in 30 days, with consultation and notice to the Labour Inspectorate and employment agency.
- Mutual agreement. Needs no statutory ground and is the common clean exit.
Can I use independent contractors?
Only for genuinely independent work. Under article 7 of the Fiscal Code an activity is independent only if it meets at least 4 of 7 tests, including freedom over place, method and hours, working for several clients, bearing business risk and using its own assets. If fewer are met, ANAF recalculates tax and contributions as employment with penalties, and using a person without a registered employment contract carries a fine of RON 40,000 per person from 2026. Placing a worker under another company's direction is also regulated as temporary agency work, which needs Ministry of Labour authorisation, so the employing structure matters. For anyone who works like an employee, an EOR set up through a compliant local employer is the safe route.
The legal framework in brief
Romania is a civil law system where the Labour Code sets most terms directly and collective agreements and contracts can only improve on it. The instruments you will hear most:
- Labour Code (Law 53/2003). Contracts, probation, working time, leave, discipline, notice and dismissal.
- Fiscal Code (Law 227/2015). The 10% income tax, CAS, CASS and CAM, and the independent activity test.
- REGES-ONLINE (Government Decision 295/2025). The register of employees that replaced Revisal.
- Fiscal packages of 2025. Law 141/2025 and Law 239/2025 changed sick pay, dividend tax and undeclared work fines.
- Data protection. GDPR and Law 190/2018, which requires prior information and consultation of employee representatives before monitoring.
- Immigration and right to work. EU nationals work freely. Others apply through the single application on WorkinRomania.gov.ro under Emergency Ordinance 32/2026, within a 2026 quota of 90,000 non-EU workers, or use the EU Blue Card.
- Pay transparency. The EU directive had not been transposed at the time of writing; a bill was before the Senate.
- Authorities. The Ministry of Labour, ANAF, the Labour Inspectorate, CNAS, IGI and ANSPDCP.
Where the talent is
About 19 million residents, with unemployment of 6.3% in September 2026. IT pays well above the national average: average net earnings in programming and IT consultancy were RON 13,474 a month in June 2026, against RON 5,734 across the economy. Romania ranked 11th in the world for English proficiency in 2025. Time is UTC+2 (UTC+3 in summer), and Romania is in the EU, a full Schengen member since 2025 and in NATO, with its own currency rather than the euro.
| Region | Talent and industry concentration |
|---|---|
| Bucharest | Headquarters, shared services, software and fintech |
| Cluj-Napoca | Software and product companies, universities |
| Iași | IT, business services and universities |
| Timișoara | Automotive, engineering and IT |
| Brașov | Manufacturing and IT |
Romania Implementation Kit
This page tells you the rules. The kit tells you what to do, in what order, and what goes wrong when you skip a step.
- Step-by-step checklist, from route selection to first payroll
- Contract, probation and REGES-ONLINE registration before day one
- Gross to net and employer cost set-up under the 2026 rates
- Monthly D112 calendar (25th) and REGES-ONLINE change deadlines
- Independent activity test and temporary agency risk checklist
- Notice, disciplinary procedure and mutual agreement pack
- Every official Romanian authority with direct links
This guide is general information, not legal, tax or immigration advice. Romania changes the minimum wage, the tax-free amount and the meal voucher cap often, and the 2025 and 2026 fiscal packages, REGES-ONLINE and the foreign worker framework are new. Confirm current figures and the employment structure with a qualified adviser or with Dryft. Last reviewed November 2026.
Ready to hire in Romania?
Tell us who you want to hire and where they sit. You will get a cost model and a compliant route within a day, from a person who has done this before.