As of March 2024, the estimated population of Romania is 19,892,812 people.
The currency in Romania is the Romanian Leu (RON). The currency symbol is lei.
Individual work contracts concluded for indefinite term are permanent contracts. Any contract that does not specifically mention an expiry term is considered indefinite. Contracts that are not concluded in writing are also considered indefinite.
Employers are obliged to conclude individual employment contracts in writing. If the contract has not been concluded in written form, the presumption is that it has been concluded for an indefinite term, and the parties can give proof of contract provisions and work performed through any other elements of proof. The law also allows the formation of digital employment contracts, using digital signatures. The contract must include information on working conditions, hours, wages, length of notice, trial period, etc. Restrictive covenants, such as non-compete clauses, confidentiality clauses, mobility clauses, etc., are valid only if they are put in writing. Employers must provide the employee with a monthly compensation, which is negotiated but must be at least 50% of the employee's salary. The non-competition clause may have its effects for a maximum period of 2 years from the date of termination of the individual employment contract.
Temporary employees are those employed by an employer (temporary labor agent) and placed at the disposal of a user for the duration necessary for carrying out certain precise and temporary duties. Temporary employees can only be hired to replace suspended employees or carry out seasonal or occasional activities. Temporary work assignments cannot be for more than 24 months and can be extended only once for a maximum total of 36 months. Temporary employees must have access to all the services and facilities provided by the user under the same terms as the user's other employees. The user must provide the necessary equipment and protective gear. Between 2 assignments, a temporary employee is at the disposal of the temporary labor agent and benefits from wages paid by the agent, which cannot be lower than the minimum gross basic salary that represents the minimum amount to which the employee is entitled for the work performed, established by regulatory act or by the applicable collective labor agreement.
In Romania, an employment contract contract can include a probationary (trial) period. A trial period of 90 calendar days at the most may be established for executive positions and 120 calendar days at the most for management positions. The trial period must not exceed 30 days for disabled persons. For unskilled workers, the trial period cannot exceed 5 working days. For graduates of higher educational institutions, the first 6 months after their debut in the profession are considered a probation period. Employees can be subject to only 1 trial period. As an exception, an employee can be subjected to a new trial period if they start a new position or profession with the same employer or is to perform their activity in a workplace under difficult, harmful, or dangerous conditions. It is prohibited to successively employ more than three persons for trial periods for the same position. Employees hired for fixed-term or temporary positions can also be subject to trial periods. During the trial period, employees enjoy all the rights and have all the obligations stipulated in the legislation, the applicable collective contract, the company's rules and regulations, as well as the individual contract.
The standard length of the working time is 8 hours per day and 40 hours per week. For employees who are not yet 18 years of age, the length of the working time is 6 hours per day and 30 hours per week. The maximum legal length of the working time must not exceed 48 hours per week, including overtime work. When work is done in shifts, the length of the working time can be extended to over 8 hours per day and over 48 hours per week, provided the average number of working hours, as calculated for a maximum period of 3 weeks, does not exceed 8 hours per day or 48 hours per week. Employees have the right to a rest of at least 12 consecutive hours between 2 working days. In the case of shift work, this rest period may not be less than 8 hours between shifts. Weekly rest must be at least 48 hours. Employees who have dependent children under the age of 18 who are classified as disabled benefit from 8 days per month of work at home or teleworking, except in situations where the nature or type of work does not allow the activity to be carried out under such conditions. In the case of employees who have 2 or more children under the age of 18 who are disabled and are in their care, 2 additional days per month of work at home or teleworking shall be granted for each child. Employees who have dependent children, twins, triplets, or multiples up to 18 years of age also benefit from 2 days per month of remote work.
2026
2027
All employees have the right to paid annual leave. The minimum annual leave is 20 days. Employees working in dangerous or harmful conditions, or those who are disabled or blind, are entitled to 3 additional days of annual leave. The actual length of annual leave is determined in the applicable collective agreement or individual employment contract. Annual leave is granted in proportion to the work performed in a year. The employer establishes an annual leave schedule in consultation with employees or their representatives, usually by the end of the previous year. They must notify the employee of the leave date at least 60 days in advance. Annual leave must be taken in the year for which it was granted. Collective agreements can stipulate certain conditions under which the leave can be transferred to the following year. Employees who are unable to use their leave in full due to work are entitled to transfer unused leave to the next year. They must take all leave within a period of 18 months starting with the year following the year in which the right to the annual leave arose. Annual leave can be split into several parts, but the employee is entitled to at least 1 block of 10 consecutive working days per year. During their annual leave, employees receive an annual holiday allowance that cannot be lower than the total value of wages for that period. It must be paid at least 5 days before the beginning of the annual leave.
In Romania, employees are eligible for paid sick leave for up to 183 days within a 12-month period. Generally, the employer is responsible for paying benefits for the first 5 days, and the Single National Health Insurance Fund pays sickness allowances after that. Medical certificates issued between February 1, 2026, and December 31, 2027, will be calculated and paid for as follows: Employers must cover sickness allowances for days 2 through 6 The Single National Health Insurance Fund covers sickness allowances from day 7 onward The first day of sick leave will no longer be paid for this period, except in case of maternity allowance, sick leave granted to patients included in national health programs, and sick leave for patients who benefit from medical services in a hospital setting. Effective August 1, 2025, temporary incapacity rates for work that is caused by an ordinary illness or non-occupational accidents are as follows: 55% for up to 7 days 65% for days 8 to 14 75% for 15 days or over For certain cardiovascular diseases, the rate remains at 75%, regardless of the duration.
Female employees who have worked for at least 1 month in the last 12 months are entitled to paid maternity leave of 126 days - 63 days before and 63 days after delivery. The minimum mandatory duration of maternity leave is 42 calendar days after delivery. Employees must submit a medical certificate to their employer to avail this leave. The High Court of Cassation and Justice mandated that granting maternal risk leave automatically suspends the employment contract. Employers are not required to issue a separate suspension decision. Maternity allowance is paid by the Single National Health Insurance Fund of Romania at the rate of 85% of the employee's average wages, provided the employee has paid 6 months of contributions in the last 12 months.
Romania grants paid paternity leave of up to 10 days to employees insured with the state social security system. If the father of the newborn child has obtained the certificate of completion of the childcare course, the duration of the paternity leave is increased by 5 working days. This leave must be taken within 8 weeks of childbirth, justified by the child's birth certificate. Paternity leave allowance is equal to the salary corresponding to that period, paid by the employer. Employees who are under mandatory military service have the right to 7 days of paternity leave. If the father has obtained the certificate of graduation from the childcare course, the duration of paternity leave is increased by 10 working days. In case of a mother's death during childbirth or during maternity leave, the remaining leave is transferred to the father.
Employees who are dismissed for being medically or professionally unfit for the job or other business-related reasons have the right to a notice of at least 20 working days. In case of collective redundancies, a minimum notice of 30 days is required. No notice is required for terminating a contract during the trial period. The notice for termination must be given in writing and must contain the reasons for dismissal, term of notice, criteria for establishing the priority sequence in case of collective dismissal, list of available positions in the company for hiring. If during notice period, the contract is suspended, the term of notice shall be suspended accordingly.
In Romania, severance pay is not mandatory in all cases but is required in situations of collective dismissals. The minimum amount and calculation method are not specified by law and depend on collective bargaining agreements or individual employment contracts.
Romania has a contribution-based social security scheme for its residents. This scheme covers retirement benefits. Private sector and public sector employees are compulsorily insured. The standard retirement age is 65 for both men and women (for women, it will increase in stages until it reaches 65 in 2035). The minimum contribution period is 15 years, while the full contribution period is 35 years. Persons working in difficult conditions are eligible for retirement at a lower age. Employees are entitled to early retirement for a maximum of 5 years before the standard retirement age if they have completed the full contribution period. The monthly pension amount depends on the number of years of contribution and the national average wage. Employees and self-employed persons under the age of 35 years are also required to contribute to mandatory individual accounts. The amount of contributions in these accounts is paid as a lump sum at the time of retirement. Only employees contribute to social security for retirement benefits; employers contribute for employees working in difficult and very difficult working conditions.
In Romania, the survivor's pension is granted to eligible children and the surviving spouse when the deceased was either a pensioner or met the conditions for obtaining a pension. Children are entitled to a survivor's pension up to the age of 16 or until the age of 26 if they are enrolled in a form of education recognized by law until their studies are completed. Children with disabilities are also entitled to a pension if the disability occurred before the age of 16 or before the age of 26 while studying. The surviving spouse is entitled to a lifetime survivor's pension at the standard retirement age if the marriage lasted at least 15 years. If the marriage lasted between 10 and 15 years, the pension amount is reduced by 0.5% per month or 6% per year for each year under 15 years of marriage. The spouse pension is also granted regardless of marriage length if the insured died from a work accident or occupational disease, and was below retirement age. The surviving spouse also receives a pension while caring for children under 7, until the last child turns 7. All surviving spouses receive a pension for 6 months following the death in any case. The amount of the survivor's pension is established as a percentage of the total number of points achieved by the worker, depending on the number of entitled dependents, as follows: 50% - for a single dependent 75% - for 2 dependents 100% - for 3 or more dependents
The mandatory social security insurance covers disability benefits for insured persons. The invalidity pension is available to those who have not reached the standard retirement age and who have lost all or at least half of their work capacity due to work accidents and occupational diseases, neoplasms, schizophrenia, and AIDS, and common diseases and accidents unrelated to work. Contribution requirements vary depending on the insured's age when the disability began. The amount of disability pension is calculated as the insured's lifetime average accumulated pension score (obtained by dividing total pension points by total years of contribution; pension points are calculated as average monthly earnings for the year divided by national average earnings for that year) multiplied by the pension point value at the time of claim. The current pension point value is RON 81 (Romanian lei). When determining the disability pension, a potential contribution period is granted, calculated as the difference between the full contributory period stipulated in the law and the contribution period actually completed by the date the disability pension is granted. In case of disability due to work accidents or occupational diseases, employers must pay for medical treatment and rehabilitation. Employees are also entitled to disability pension. Only employees contribute to social security for retirement benefits, and employers contribute for employees working in high-risk and very high-risk conditions.
Residents are liable to pay income tax on income from sources in Romania and abroad. Non-residents are liable to pay tax on income from dependent and independent activities carried out in Romania. Residents are those individuals who are either domiciled in Romania or whose center of economic interests is in Romania or who are present in Romania for a period or more periods exceeding a total of 183 days, during any interval of 12 consecutive months. The taxable period is the fiscal year corresponding to the calendar year. Income from dependent activities and pensions is taxed at a flat rate of 10%. Income from dividends is taxed at 16% (effective January 1, 2026) and income from interests is taxed at 10% and income from prizes and gambling is taxed at a progressive rate from 1% to 16%.
Effective January 1, 2025, Romania is a Schengen member state. Visas are granted based on the purpose of travel as follows:
Foreign nationals who wish to be employed in Romania for full-time or seasonal work are required to apply for a long-term visa for employment (Visa D/AM) and present a work permit issued by the General Inspectorate for Immigration within the Ministry of Internal Affairs. The D/AM1 visa is granted to highly qualified workers, foreign nationals who are to carry out activities requested by ministries or other central public administration bodies. The D/AM2 visa is granted to permanent, seasonal and cross-border workers, subject to national quotas. Application for Visa D/AM1 is submitted directly by the employer, and for D/AM2 is submitted by an authorized placement agency or by an authorized employer. The employer who hires a foreign national is required to apply for a work permit for the employee with the required documents. Effective August 8, 2026, Romania has introduced a single application processed through the electronic platform, WorkinRomania.gov.ro. To employ foreign employees, employers are required to register or, as the case may be, authorize them on the electronic platform WorkinRomania.gov.ro. Upon fulfillment of all the requirements, a work permit is issued within 30 days. After this, an employee can apply for a long-term stay visa. After entering Romania, employees must obtain a single permit or EU Blue Card (for highly-qualified applicants) that certifies their right to reside in Romania and can be obtained from the territorial units of the General Inspectorate for Immigration in the county where they live. The right of temporary residence for work purposes is extended for a period equal to the validity period of the employment contract, but not more than 2 years. Foreign nationals, highly qualified workers, are granted an extension of their right to temporary residence for work purposes for a period equal to the validity period of the employment contract plus 3 months, but not more than 3 years.
