Employment in Romania is governed by the Labour Code (Law No. 53/2003) and social insurance legislation. Most social contributions are paid by the employee and withheld by the employer, and every contract must be recorded in the REVISAL electronic register. Here is what employers need to know.
The Labour Code sets minimum leave, and collective agreements or contracts often add more. Sick leave and maternity benefits are funded through the national health insurance system.
Working days of paid leave a year, at least 10 of them taken consecutively. Unused leave can be carried over to the next 18 months.
Of average insured earnings, depending on the length of the sick note. Up to 183 days a year, extendable in some cases.
63 days before and 63 days after birth, paid at 85% of average insured earnings. At least 42 days after birth are compulsory.
Working days paid by the employer, extended by 5 days if the father has completed a childcare course.
| Length of the sick leave episode | Sick pay |
|---|---|
| Up to 7 days | 55% |
| 8 to 14 days | 65% |
| 15 days or more | 75% |
For medical certificates issued between 1 February 2026 and 31 December 2027, the first day of sick leave is unpaid, with some exceptions (such as serious illnesses and emergencies). It still counts as a day of sick leave.
Set up each Romanian leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for new joiners. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
The national gross minimum wage is set by government decision. Some sectors, such as construction, have their own higher minimum.
From 1 July 2026 (Government Decision 146/2026), for an average of 166.667 hours a month, or about RON 25.95 an hour. It was RON 4,050 before.
8 hours a day. Including overtime, the week may not exceed 48 hours, averaged over a reference period.
Overtime is first compensated with paid time off within 90 days. If that is not possible, it is paid with a premium of at least 75%.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so time off in lieu, overtime and night premiums reflect what was actually worked. Time & attendance →
Romania taxes employment income at a flat rate of 10% for 2026. The tax is calculated after deducting the employee’s social contributions and any personal deduction, and is withheld by the employer each month.
| Item | Rate |
|---|---|
| Employee pension contribution (CAS) | 25% |
| Employee health contribution (CASS) | 10% |
| Income tax on the remaining taxable income | 10% |
Tax and contributions must be declared (Form D112) and paid by the 25th of the month after the salary is paid.
Since 2018, almost all social contributions have been paid by the employee, so the employer’s own cost on top of gross salary is low.
Paid by the employer on gross salaries. It funds unemployment, work accident and wage guarantee benefits.
Only for work in particular (4%) or special (8%) working conditions. None for normal conditions.
25% pension (CAS) and 10% health (CASS), deducted from gross pay and paid over by the employer.
Employers with 50 or more employees must employ people with disabilities (4% of staff) or pay a monthly contribution to the state budget instead.
Build Romanian pay the way you already structure it, with your own salary components, deductions and formula columns, such as CAS, CASS and CAM columns. Want to know how well IceHrm handles payroll calculations for Romania? Contact us or see Payroll →
Employment in Romania is not “at will”. An employer can only dismiss for reasons set out in the Labour Code, either related to the employee or because the job is being abolished, and must follow the required procedure.
| Situation | Notice |
|---|---|
| Dismissal by the employer (unfitness, inadequacy, redundancy) | At least 20 working days |
| Resignation, non-management roles | Up to 20 working days |
| Resignation, management roles | Up to 45 working days |
The Labour Code does not set a statutory severance amount. Compensation for dismissals not related to the employee is payable where the applicable collective agreement or the employment contract provides for it. Collective redundancies require consultation with employee representatives and notification of the labour inspectorate and the employment agency.
Employees cannot be dismissed while on sick leave, maternity or child-raising leave, or while pregnant when the employer knew of the pregnancy, except for disciplinary reasons or when the employer is being dissolved.
Romania has 17 public holidays. Easter and Pentecost follow the Orthodox calendar. Employees of other recognised religions are also entitled to two days off for each of their faith’s religious holidays.
Leave groups give each office its own holiday calendar, so the moving Orthodox holidays and any religious days for other faiths are applied to the right employees automatically. Holiday calendars →
Employment contracts must be in writing, in Romanian, and signed before the employee starts work. Open-ended, full-time contracts are the default; fixed-term and part-time contracts are exceptions.
| Contract and role | Maximum probation |
|---|---|
| Open-ended, execution roles | 90 calendar days |
| Open-ended, management roles | 120 calendar days |
| Fixed-term under 3 months | 5 working days |
| Fixed-term of 3 to 6 months | 15 working days |
| Fixed-term over 6 months | 30 working days |
| Fixed-term over 6 months, management roles | 45 working days |
Fixed-term contracts are allowed only in the cases listed in the Labour Code. They can last up to 36 months, and no more than three successive fixed-term contracts can be concluded between the same parties.
Send contracts for e-signing, store medical certificates and training records on the employee’s record, and track onboarding with task lists, including the REVISAL entry, so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Romania, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Romania? Talk to us.
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