HR Software for Romania

Leave Policy

Maternity Leave

Pregnant employees who have worked for 6 months within the last year are entitled to 126 days of paid leave. The employee must claim at least 42 days after the birth of the child. Maternity leave is paid by the National Social Security Fund at 85% of the employee’s average earnings for the previous 12 months.

The employee cannot extend the vacation.

You can use the leave module in IceHrm to manage maternity leave in Romania.

Paternity Leave

Employees insured under the state social security system are entitled to 10 days of paid paternity leave. During this period, the employee receives 100% of the salary, which is paid from the employer’s salary fund.
If the employee receives a certificate of completion of the childcare course, the paternity leave can be extended by a further 5 days, making a total of 15 days.

Parental Leave

Employees are entitled to two years of unpaid parental leave, and employees who are parents of children with disabilities are entitled to three years of unpaid parental leave. The leave is granted to the father if the mother does not take this parental leave or if she has used part of the leave.

During parental leave, the employee receives a state childcare allowance equal to 85% of the average net income earned by the parent in the last 12 consecutive months of the last two years before the birth of the child.

Sick Leave

Employees are entitled to up to 90 days of paid sick leave per year. The first 5 calendar days of sick leave are paid by the employer, the remaining days are paid by the employer and reimbursed by the state health insurance company. This leave is paid at different rates depending on the illness. Compensation rates depend on the disease code and the percentage indicated in the certificate issued by a doctor or hospital. The minimum amount is 75% and the maximum is 100% of the salary.

With the approval of a social security specialist, sick leave can be extended by a maximum of 183 days within a calendar year, counting from the first day of illness.

Pay & Tax

Minimum Wage Requirements

The minimum wage is RON 3,300 per month.

Individual Income Tax

The individual income tax rate is 10%. Income tax is calculated at a flat rate.

Payroll Cost

The cost to the employer is generally estimated at 6.25% of the employee’s wages.

  • Labor insurance contribution – 2.25%
  • Disability costs – 4.0%
  • Compensation for telework – 400 RON*
  • IT Assessment (one-time fee) – USD 300

*Prorated for employees who work less than a full month.

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day and 40 hours per week. Standard working hours are Monday to Friday.

Pay for overtime is mandatory. They can be compensated financially or in the form of paid time off. Hours that fall outside of normal working hours are considered overtime. An employee can work a maximum of 32 hours of overtime per month. Employees receive compensation for additional hours:

  • 150% of average salary per hour on weekdays
  • 200% of average hourly salary on weekends

Termination

Termination Requirements

Dismissals must take into account complex rules and the regulations of the country in which an employee is employed. Off-boarding is always carried out by the employer with the main participants. It may include ad hoc fees as well as required or recommended steps for specific termination cases.

Layoffs in Romania can be complex. In Romania, employers cannot terminate at their own discretion and the termination must be for a valid reason.

Proper terminations include:

  • Employee-related reasons:
    1. Disciplinary misconduct (in case of serious or repeated violations of the rules of labor discipline or of the rules established in the individual employment contract, the collective agreement or internal regulations)
    2. Physical/mental unfitness (as determined by relevant medical authorities)
    3. Professional inadequacy
    4. Placement in police custody or house arrest for more than 30 days
  • Reasons that are not personal to the employee
    1. Dismissal as a result of personnel restructuring, e.g. for economic, financial or organizational reasons
  • Mutual consent
  • Probation period
  • Expiry of the employment contract

Note: Employees cannot be terminated during vacation, temporary incapacity, quarantine or pregnancy if the employer knew of the pregnancy.

Notice Period

The notice period is at least 20 days and depends on the reason for termination.

  • Dismissal – at least 20 days
  • Termination of an employee
    1. Leadership positions – maximum 20 days
    2. Management/Coordination Positions – Maximum 45 days
  • Termination of the contract by mutual agreement – the employer can waive the notice period

According to Romanian law, the termination date is different from the employee’s last working day (usually the last working day is a day before the termination date).

During the termination of the employment relationship or the departure from the company, employees are paid in the same wage payment cycle as on their last day of work. For example, if the last day of work is June 29th, the termination date is June 30th.

Severance for Employees

Severance payments only have to be paid if they were previously mentioned in the employment or collective agreement or if they were previously negotiated.

Statutory Time Off

Paid Time Off

Both full-time and part-time employees are entitled to 20 days of paid time off per year. PTO is calculated at 1.66 days per month. Employees are entitled to take their vacation once they have accumulated it.

By law, employees must take at least 10 consecutive working days of paid vacation per year.

Public Holidays

There are 17 national holidays in Romania. National holidays include:

  • New Year’s Day
  • Day after New Year’s Day
  • Baptism Day
  • St John’s Day
  • Day of the Union of Romanian Principalities
  • Orthodox Good Friday
  • Orthodox Easter Sunday
  • Orthodox Easter Monday
  • Labor Day
  • Children’s Day
  • Orthodox Pentecost (Whit Sunday)
  • Orthodox Pentecost Monday (Whit Monday)
  • Assumption of the Virgin Mary
  • St. Andrew’s Day
  • Romania National Day
  • Christmas Day
  • Second Day of Christmas

Onboarding

Onboarding

5 business days 

Additional Info

Employment Contract Details

The contracts must be drawn up in Romanian and can be bilingual. They must be in writing and signed by both parties.

A contract must contain the following:

  • Identity of the parties
  • Place of work and headquarters
  • Position and job description
  • Criteria for performance appraisal
  • Working conditions (in accordance with local legislation)
  • Date of the contract
  • Type of employment contract (fixed-term, temporary)
  • Annual vacation
  • Notice period
  • Salary
  • Working hours
  • Duration of the probationary period
  • Termination information

Probation Period

Probationary periods are not mandatory. There is no minimum probation period. The maximum length of the probationary period depends on the type of employment relationship.

For permanent contracts:

  • Leadership position – 90 days
  • Leadership and coordination tasks – 120 days
  • Employees with disabilities – 30 days

Permanent contracts:

  • Contracts with a term of less than 3 months – 5 days
  • Contracts between 3 and 6 months – 15 days
  • Contracts longer than 6 months – 30 days
  • Contracts with a term of more than 6 months (employees in managerial positions) – 45 days