Employer of Record (EOR) Romania

An Employer of Record (EOR) acts as the legal employer for workers in Romania, serving a pivotal role often referred to as a Global Professional Employer Organization (Global PEO). This role encompasses comprehensive oversight of various employment aspects, ensuring strict adherence to local labor laws and regulations. Key responsibilities involve the management of payroll, taxes, legally mandated benefits, and the creation of employment agreements.

Responsibilities of the Employer of Record (EOR) in Romania include:

  • Ensuring strict compliance with local employment laws for all workers.
  • Managing the intricacies of the local payroll process.
  • Handling the filing of employment-related taxes and essential paperwork.
  • Providing workers with accurate and timely payslips.
  • Facilitating the seamless distribution of workers’ salary payments.

Optimize your global expansion with our Global PEO services – a streamlined solution without the need for entity setup. Our Employer of Record (EOR) in Romania guarantees legal presence, compliance, and Intellectual Property (IP) protection, allowing your business to concentrate on its core functions. Facilitate smooth global mobility and work visas while building a diverse and efficient global workforce. Choose Mercans, your trusted Employer of Record in Romania, for a compliant and efficient employment experience for your global workforce.

Things you need to know before hiring in Romania

Employment Contracts in Romania

In Romania, individual employment agreements typically follow an unlimited (open-ended) term, though fixed-term or part-time contracts are also permissible.

As per the Romanian Labour Code:

Contract Form and Language
Employment contracts must be in writing, in Romanian, and based on mutual consent. Employers register the contract with the electronic employee program (ReviSal) before the employment begins.
Informative Obligations
Employers must inform candidates or employees about essential contract clauses before its conclusion or amendment. A preliminary check on the applicant’s abilities is mandatory, and information from a former employer is sought only after informing the applicant.
Medical Certificate Requirement
A medical certificate is mandatory upon hiring to assess the applicant’s fitness for the job. Absence of the certificate renders the contract null and void.
Essential Provisions Contracts
strong>Essential Provisions Contracts must include:

  • Identity of parties
  • Place of work
  • Employer’s headquarters or domicile
  • Position and job description
  • Evaluation criteria, job-specific risks
  • Start date, expiration date (if applicable)
  • Annual paid holiday entitlement
  • Notice period conditions
  • Compensation details
  • Working time specifications
  • Reference to applicable collective labor agreement
  • Probationary period duration
Negotiable Clauses
Parties may negotiate additional clauses, including professional training, non-compete, mobility, and confidentiality clauses.
Fixed-Term Contracts
Limited to cases defined by the Labour Code, with specific details and duration mentioned. The same parties cannot sign more than three consecutive fixed-term contracts, and the cumulative duration, including extensions, cannot exceed 36 months.
Part-time Contracts
Must specify working time, schedule, conditions for schedule amendments, and exceptions for overtime.
Assistance in Negotiations
Both parties can seek assistance from third-party specialists, including lawyers, during contract negotiations.

Probation Period 

Employment contracts, whether for a fixed or open-ended term, have the flexibility to include a probationary period clause.

To assess an employee’s skills, the parties can mutually agree on a probationary period outlined in the individual employment contract. For standard positions, this period may extend up to a maximum of 90 calendar days, while managerial roles may have a maximum probationary period of 120 calendar days. In the case of disabled persons, the probationary period is limited to a maximum of 30 calendar days.

Either the employer or employee can initiate the cessation of the individual employment contract during or before the probationary period ends. This can be accomplished through written notification, without the need for motivation or prior notice. The flexibility in probationary periods allows for a fair evaluation of both the employer and employee’s compatibility, fostering a more informed decision-making process.

Notice Period

Either the employer or the employee holds the right to terminate the individual employment contract. If the employer initiates the termination, except for dismissal on disciplinary grounds or if the employee is detained for over 30 days, the employee is entitled to a notice period lasting no less than 20 working days.

In the event of termination by the employee’s decision to resign, a notice period must be observed. This period should not exceed 20 working days for standard positions and 45 working days for managerial roles. However, the employer retains the prerogative to waive the notice period, agreeing to conclude the contract based on the employee’s will at any time before the notice period’s conclusion. This flexibility in notice periods allows for a smooth transition and clear communication between both parties involved.

Working Hours

The standard working day comprises 8 working hours, and the workweek consists of 5 working days, summing up to 40 hours weekly. It is mandated that the total working hours for a week, encompassing overtime, should not exceed 48 hours.

Employees vs Independent Contractors 

In today’s evolving workforce, the distinction between employees and independent contractors is more important than ever. Both classifications play vital roles in various industries, yet they come with distinct legal, financial, and operational implications. Understanding these differences is crucial for businesses and individuals alike, as they affect everything from taxation and benefits to job security and liability. This overview aims to clarify the fundamental contrasts between employees and independent contractors, highlighting the key features that define each category and the impact these classifications have on the working relationship.

FeatureEmployeeIndependent Contractor
Legal RelationshipEmployment contractService Agreement
TaxationSubject to personal income tax and social contributionsSubject to income tax, but responsible for own social contributions
BenefitsEntitled to employment benefits (e.g., health insurance, paid leave)Generally not entitled to employment benefits
Working HoursTypically has set working hours and follows the employer's scheduleHas flexibility in determining working hours and schedule
Taxes and ContributionsEmployer deducts and pays social contributions and taxesResponsible for own taxes and social contributions
Liability for Work-related AccidentsCovered by employer's insuranceTypically responsible for own insurance and liabilities
Termination ProcessSubject to labor laws, may require notice periodTypically follows terms outlined in the service agreement
Training and EquipmentEmployer provides necessary training and equipmentResponsible for own training and may provide own equipment
Job SecurityMay have more job security due to labor lawsTypically considered a temporary or project-based relationship
Legal Recognition of RelationshipRecognized as an employment relationshipSubject to possible re-characterization by courts

Payroll in Romania

Payroll Essentials for Romania

Government requirements

Registration of Local Employees

  • No specific registration requirements for local employees regarding social security or income tax.

Registration with the Tax Office

  • Registration with the appropriate Tax Office is not necessary if the company was registered as a paying payroll taxpayer upon establishment with the Romanian Trade Register.
  • Each company must register with the Romanian Trade Register upon establishing a legal entity in Romania.
  • Employers are administered by the territorial Tax Office where their headquarters is located.

Documents Required for Registration as Payroll Taxpayer:

  • Tax registration declaration.
  • Copy of the Individual Employment Agreement (IEA) with the first employee or an extract from the General Registry of Employees.
  • Documents must be submitted within 30 days of hiring the first employee.
  • Non-compliance may result in fines ranging from RON 500 to RON 1,000 (approximately EUR 110 – EUR 220).

Registration with the Territorial Labor Chamber — General Registry of Employees

  • Employers must prepare and submit information to the Territorial Labor Chamber for the electronic General Registry of Employees.
  • Employers have two options for filing information:
    1. Nominate one or more employees responsible for filing.
    2. Engage a service provider to manage the filings, with a written notice to the labor authorities.

Filing Deadlines:

  • New Employment Contract: File one working day before the start date.
  • Contract Termination: Record by the termination date.
  • Contract Suspension: File one working day before suspension starts.
  • Amendment of Employment Contract: Record at least one working day prior to changes; gross salary changes must be reported within 20 working days.

Penalties for Non-compliance:

  • Fines between RON 5,000 and RON 8,000 (approximately EUR 1,100 to EUR 1,700) for late submission of new employee information.
Government requirements

Ongoing compliance requirements

  • Employment Income: Employers must ensure accurate reporting of all employment income paid to employees, including salaries, bonuses, and any other compensations.
  • Income Tax: Employers are responsible for withholding income tax from employees’ salaries based on applicable tax rates and regulations, ensuring timely remittance to the tax authorities.
  • Personal Deductions Granted for Income Tax Computation Purposes: Employees may be entitled to various personal deductions when calculating their taxable income, including those for dependents, specific expenses, and contributions to optional pension schemes.
  • Social Security and Healthcare Charges: Employers must deduct social security contributions from employees’ salaries and make corresponding employer contributions, covering pensions, unemployment, and healthcare.
  • Corporate Statutory Monthly Payroll Statement: A corporate statutory monthly payroll statement must be prepared and submitted to relevant authorities detailing the total payroll expenses, including gross salaries, deductions, and net payments to employees.
  • Monthly Payroll Related Tax Return: Employers are required to submit a monthly payroll-related tax return that summarizes withheld taxes, social security contributions, and any other applicable payroll taxes.
  • Monthly Payroll Related Disability Fund: Employers must contribute to the monthly payroll-related disability fund, ensuring coverage for employees in the event of work-related disabilities or injuries.
  • Payroll-Related Statistics Reports: Employers are required to compile and submit payroll-related statistics reports to governmental authorities, providing data on employee remuneration and contributions.
  • Application for Recovery of Medical Allowances: Employers can apply for the recovery of medical allowances from health insurance authorities, ensuring compliance with regulations for sick leave and maternity benefits.
  • Employees’ Annual Fiscal Records (i.e., Annual Salary Certificates): Employers must prepare and provide annual salary certificates to employees, detailing their total income, tax withholdings, and social security contributions for the fiscal year.
  • The Electronic General Registry of Employees: Employers are obligated to maintain and update the Electronic General Registry of Employees (REVISAL), ensuring all employee information is accurate and compliant with labor regulations.
Pension Requirements

Registration Requirements

  • In Romania, mandatory pension contributions are required, and registration with the relevant authorities is essential. This includes registering both the employer and employees for social security contributions, ensuring compliance with the national pension system.

Optional Pension Scheme (Pillar III)

  • The optional pension scheme, known as Pillar III, is regulated by Law 204/2006 regarding optional pensions, with subsequent amendments. Employees have the choice to contribute to this scheme voluntarily, allowing for additional retirement savings. Contributions are made by the employee but can also be supplemented by employer contributions, providing an extra benefit.
  • The contributions to the optional pension scheme are tax-deductible up to the equivalent of €400 per year per participant, with the employer responsible for facilitating this deduction through monthly payroll calculations based on supporting documentation provided by the employee.

Ongoing Compliance Requirements

  • Ongoing compliance related to pension contributions includes ensuring accurate and timely reporting of mandatory contributions as part of the monthly social security return.
  • Employers must also maintain records of employee participation in the optional pension scheme, ensuring that contributions are processed and reported correctly. Regular updates and compliance checks with the pension fund authorities are necessary to verify that both mandatory and optional contributions are in good standing.
Employment Obligations
  • Employment Legal Framework: Employment relations in Romania are primarily governed by the Romanian Labor Code (Law 53/2003, republished and subsequently amended). The code applies to both Romanian employees and foreign individuals working for Romanian employers, whether in Romania or abroad.
  • Types of Employment Contracts: Employment contracts can be concluded for an indefinite term, with additional forms permitted, including fixed-term contracts, temporary employment, part-time arrangements, and flexible working options such as home-based work.
  • Minimum Monthly Gross Basic Guaranteed Salary in Romania: The minimum gross salary is established annually by government decision after consultations with trade unions and employers’ organizations. As of January 1, 2021, minimum salaries vary based on factors like education and seniority, with amounts set at RON 2,300, RON 2,350, and RON 3,000 for different categories of employees.
  • Special Clauses in Employment Contracts: Employers must inform employees about their employment terms, including duration, working hours, salary, and leave. Contracts may also include special clauses, such as non-competition, mobility, and confidentiality agreements.
  • Working Hours and Paid Holidays: The standard working hours are eight hours per day and 40 hours per week. Part-time contracts specify fewer than 40 hours per week. Employees are entitled to at least 20 business days of annual paid leave, with additional days for those working in hazardous conditions or those under 18.
  • Occupational Health and Safety: Employers are responsible for ensuring a safe working environment and must provide access to occupational medical check-ups for employees upon hiring and periodically thereafter.
  • Professional Training: Employers are required to provide professional training at least once every two years for companies with 21 or more employees, and once every three years for smaller companies. Employers must also grant leave for training purposes.
  • Employees’ Representation: Employees can be represented by trade unions or elected representatives. Employers with over 20 employees must negotiate a collective labor agreement at the company level.
  • Termination of Employment Contracts: Employment contracts can be terminated by law, by mutual consent, or by either party under specific conditions. Employers must provide a notice period of at least 20 business days for dismissals not related to disciplinary actions.
  • Employee’s File Administration: Employers are required to maintain physical employee records, including personal files containing necessary employment documents, the individual employment agreement (IEA), job descriptions, and records of contract amendments or terminations.

Medical Leave (Including Maternity Leave)

  • During medical leave, the IEA is suspended, and employees are entitled to a sick leave allowance based on their average gross income. Employers must pay the sick leave for the first five days, with subsequent days covered by the Health Insurance House.

Parental Leave (Long Childcare Leave)

  • After maternity leave, one parent is entitled to childcare leave until the child is two years old (or three for disabled children). During this period, the IEA is suspended, and the parent receives a monthly allowance from Romanian authorities.

Employment Certificates for Leaving Employees

  • Upon termination or during employment, employers must provide various certificates to employees, including confirmations of salary income and contribution history for medical leave and unemployment purposes, as well as annual salary certificates and other requested documentation.

Payroll requirements

  • Payslips: There is no legal obligation to provide payslips to employees; however, it is common practice in Romania to issue them on a monthly basis after the payroll run is confirmed and closed. Payslips can be provided in either electronic or hard copy format, with no specific regulations governing the format.
  • Timekeeping: Employers are required to keep evidence of hours worked, including the starting and ending hours of each employee’s work schedule, as well as any types of leave taken (paid or unpaid). The applicable labor legislation does not provide specific guidelines on how this evidence should be maintained, including the format for timesheets.
  • Payroll Information Storage: Documents and data from the General Registry of Employees, the personal file of each employee, and the statutory monthly payroll statement must be stored for 50 years. Employers are responsible for ensuring these records are kept securely to comply with personal data protection laws. If an employer ceases operations, payroll documents must be retained in accordance with Companies Law No. 31/1990 or handed over to the State Archives.
  • Governing Laws: The key regulations governing payroll requirements in Romania include:
    • Accounting Law No. 82/1991
    • Order No. 2634/2015 regarding financial and accounting documents
    • Fiscal Code (Law 227/2015)
    • Law No. 677/2001 and General Data Protection Regulation (GDPR)
    • Labor Code (Law 53/2003)
    • Decision No. 905/2017 on the General Registry of Employees
    • Law on Trading Companies No. 31/1990

Banking requirements related to payroll

  • Salary Transfer: There are no legal restrictions regarding salary transfers; salaries can be paid from either a Romanian or a foreign bank account. However, it is generally advisable to process payroll payments through a Romanian bank account to facilitate compliance with local regulations.
  • Currency of Payment: Salaries are typically paid in Romanian leu (RON) as mandated by the National Bank of Romania Regulation No. 4/2005 concerning the foreign exchange regime. Foreign citizens employed in Romania may receive their salaries in foreign currency, provided they meet certain conditions outlined by local laws.
  • Payments to Authorities: Employers can make payments to tax authorities from either a Romanian or a foreign bank account, although using a Romanian bank account is recommended. This is due to the fact that some foreign banks may not be able to transfer funds in Romanian leu directly into the accounts of the Romanian public treasury.
  • Tax and Social Charges Payment: Salary income tax and social charges should be paid in Romanian leu using the bank details listed on the Ministry of Finance’s official website. The specifics depend on the Tax Office administering the employer, such as a Territorial Tax Office or one designated for small, medium, or large taxpayers. Compliance with the Romanian Fiscal Code, Fiscal Procedure Code, and Order No. 1612/2018 on taxes, social contributions, and tax receivables is essential for timely and accurate payments.

Minimum Wages

The current minimum wage in Romania is RON 3,300.00 per month, effective from October 1, 2023, and remains valid through December 2023. These figures are stated in Romanian New Leu and are presented before tax deductions.

Minimum Wage Overview:

  • Per month RON 3,300.00
  • Per hour RON 19.96

Please note that these rates are subject to change based on future regulations or adjustments.

Payroll Cycle 

In Romania, payroll is processed on a monthly basis, with compensation for work conducted between the first and last day of the month typically distributed on the last working day of that month.

Mercans’ Payroll Capabilities in Romania

Mercans excels in managing payroll intricacies in Romania, requiring meticulous attention and comprehensive solutions. Our Employer of Record services simplifies the payroll process, ensuring precision, compliance, and operational efficiency.

  • Payroll Cycle in Romania: The Romanian payroll operates on a monthly basis, involving stages such as setup, salary calculations, and reporting. Mercans’ Employer Of Record services expertly handle these tasks with precision.
  • Local Currency Payments: Making payments in the local currency enhances convenience and minimizes currency exchange complexities. Mercans facilitates this with multi-country payment solutions.
  • Payroll Setup, Processing, Administration: From configuring software to processing salaries and managing leave balances, Mercans’ EOR services adeptly handle every aspect of payroll efficiently in Romania.
  • Statutory Filings and Payments: Compliance with local regulations is paramount. Mercans provides seamless support for statutory filings, ensuring adherence to Romanian laws.
  • Trusted Payroll Partner in Romania: Our expertise in Employer Of Record services extends to multi-country payroll management, delivering accurate and streamlined payroll operations across various locations.

Social Security in Romania

Social Security Contributions

Social contributions for income from dependent activities in Romania are calculated based on a specific computation base, subject to potential modifications by the Social Security State Budget Law, the State Budget Law, or direct amendments to the Fiscal Code. These contributions adhere to EU social security coordination rules and Romania’s social security agreements.

General social contribution rates are outlined as follows:

Employee Contributions

  • Social Insurance Contribution” 25%
  • Health Insurance Contribution: 10%
  • Monthly assessment base: Gross income from dependent activities.

Employer Contributions

  • Social Insurance Contribution: 4% for particular working conditions or 8% for special working conditions; no contribution for normal working conditions.
  • Labour Insurance Contribution: 2.25%
  • Monthly assessment base: Gross salary income derived from employment contracts, service relationships, or special statuses, with specific exceptions for certain sectors.

Employers compute and withhold social contributions during salary payments, declaring and remitting them to state budgets by the 25th day of the following month. For benefits received based on employment contracts or contractual relationships, the obligation to compute and withhold social contributions depends on the payer’s tax residence.

Social contributions also apply to various income types, including:

Independent/Freelancing Activities and IP Rights

  • Social Insurance Contribution 25%
  • Calculation base chosen by the individual, not lower than 12 minimum gross salary incomes (RON 36,000 for 2023) or 24 minimum gross salary incomes (RON 72,000 for 2023).

Other Sources of Income (e.g., IP rights, investment income, rental income)

  • Health Insurance Contribution 10%
  • Applicable thresholds based on annual gross/taxable income.

Other Taxes

  • Value-Added Tax (VAT): Standard rate of 19%.
  • Net Wealth/Worth Taxes:  Inheritance, Estate, and Gift Taxes: No inheritance taxes, and gift taxes are not levied.
  • Property Taxes
    • Building Tax:
      • Residential Buildings: Tax rate between 0.08% and 0.2%.
      • Non-Residential Buildings: Tax rate between 0.2% and 1.3% (0.4% for agricultural use).
  • New rules effective from 2025.
    • Land Tax:
      • Fixed amount per square meter, varying by land rank and use.
      • Paid annually, with a 10% reduction for full advance payment by March 31.

Employee Hiring Cost in Romania

Let’s consider a hypothetical scenario where the gross annual salary for an employee in Romania is RON 9,999.96. In addition to the salary, the employer incurs various costs, resulting in a total annual employer cost of RON 6,609.00. This includes specific components such as a labor insurance contribution of RON 225.00, a teleworking indemnity of RON 4,800.00, and a disability cost of RON 1,584.00. When combining the gross salary with these associated employer costs, the total annual cost to employ this individual amounts to RON 16,608.96. This breakdown provides insight into the overall financial commitment associated with employing someone in Romania, encompassing salary and various additional expenses.

Gross Annual SalaryRON 9,999.96
Total Annual Employer CostsRON 6,609.00
Labor Insurance ContributionRON 225.00
Teleworking indemnityRON 4,800.00
Disability CostRON 1,584.00
Total Annual CostRON 16,608.96

Personal Income Tax

Tax Residency for Romanian Citizens

  • Romanian citizens domiciled in Romania are considered tax residents.
  • Taxable on worldwide income (excluding certain foreign-sourced salary income).
  • Exemptions available with tax residence certificates under double tax treaties (DTT).
  • Taxable in Romania for the year of residency change and the next three years if no DTT in place.

Taxation for Non-Domiciled Romanian Citizens and Foreign Individuals

  • Romanian citizens not domiciled in Romania and foreign individuals taxed only on Romania-sourced income.
  • Taxed on worldwide income upon becoming Romanian tax residents (subject to DTT provisions).
  • Refer to the Residence section for residency criteria.

Personal Income Tax Rates

  • Generally, a flat personal income tax (PIT) rate of 10% is applicable.
  • Exceptions for specific cases: dividends, capital gains, income from property transfers, and gambling activities.
  • Rates for these exceptions may vary based on income levels.

Local Income Taxes

  • No local taxes on personal income in Romania.
  • Simplifies the tax landscape for individuals.

Employee Benefits in Romania

Statutory Leaves

Holiday Leave
  • All employees are entitled to a minimum of 20 vacation days annually, in addition to national holidays.
  • Specific conditions warrant additional leave: employees under 18, those working in hazardous environments, or those with disabilities or blindness receive three extra days.
  • Anticipation of Paid Time Off (PTO) is possible with employer agreement; unused leave upon departure is deducted from payroll.
  • Unused annual leave must be rolled over within 18 months (extended to 3 years per jurisprudence).
Sick Leave
  • Employees receive five days of sick leave at 75% of salary, paid by the employer.
  • Eligibility for up to 183 days of government-paid sick leave, dependent on industry and circumstances.
  • Doctor’s note and employer notification within 24 hours are required.
  • Reporting on a non-working day must occur on the next available working day.

Personal Leave

Employees can take unpaid leave for personal reasons.

Careers Leave

Parents are entitled to 45 days at 75% pay to care for a sick child (up to 7 years), a disabled child (up to 18 years), or a seriously ill child (up to 16 years).

Maternity Leave

  • Pregnant employees receive 126 days off, starting 63 days before the estimated due date, with 42 days being compulsory.
  • Maternity leave is paid at 85% of salary by the government.

Paternity Leave

  • Fathers are entitled to five days of paternity leave, and an additional five days can be granted for taking a child care course or having medical expertise in child care.
  • Paternity leave is paid at 100% by the employer.

Parental Leave

  • Parents are entitled to 12 months of parental leave before the child turns two, with 85% of salary covered by the government.
  • One parent’s leave automatically grants the other one month; both parents must take at least one month.
  • Failure to do so results in the other parent being eligible for only 11 months of parental leave.

Overtime Pay

The employer is obligated to recompense overtime in either of two ways: (1) by providing paid time off within the following 90 days or (2) by making an additional payment, the sum of which must not be less than 75% of the base salary for the overtime worked. In the event that overtime work is performed on public holidays, the employer must choose between (1) compensating the employee with paid time off within the subsequent 30 days or (2) making an additional payment equivalent to at least 100% of the base salary. Although the law designates paid time off as the primary mode of compensation, most employees express a preference for overtime payment.

Termination, Severance Pay and Notice Period

In the realm of employment contracts, Romanian law draws a line between managerial and operational positions, each subject to specific considerations during the termination process.

Termination of employment may occur at the contract or probation period’s conclusion, at the employee’s request, or upon the employer’s request.

If the termination is initiated by the employer before the employment contract concludes, it must be based on valid reasons such as physical or mental incapacity, professional inadequacy, or redundancy. The employer is obligated to furnish written reasons for dismissal.

  • Constraints on Termination: Certain restrictions limit terminations; employees cannot be dismissed during leaves, temporary disability, quarantine, or pregnancy if the employer was aware of the pregnancy.
  • Notice Period: Employees are entitled to a minimum notice period of 20 days before termination. Executives are expected to provide a 20-day notice for resignation, while managerial positions necessitate a 45-day notice.
  • Severance Pay: Notably, Romanian law does not mandate severance pay as a requirement.

Work Permit in Romania

Securing a work permit is mandatory for non-EU/EEA/Swiss individuals employed in Romania, and this authorization is granted upon the employer’s request by Romanian immigration authorities. The work permit serves as a crucial document for obtaining a long-stay visa or residence permit, ensuring that foreigners cannot engage in work in Romania without obtaining this essential permit.

It’s important to note that a work permit doesn’t confer general permission for employment in Romania; rather, it is specific to a single company (as requested by the employer) and a particular position. Should a foreign individual transition from one company to another, obtaining a new work permit is mandatory, even if the existing one is still valid.

Recent enhancements have streamlined conditions for job changes within the same employer or changing employers, provided the single permit or EU Blue card remains valid. In such cases, individuals are exempted from providing proof of selection or payment of obligations to the state budget, as long as they can present a clean criminal record statement issued by Romanian authorities.

Various types of work permits cater to distinct employment scenarios:

Work Permit for Local Hires
  • Requires local employment in Romania and the execution of a local employment contract.
  • Validity aligns with the local employment contract, automatically extending upon residence permit renewal (single permit).
  • Specific pre-conditions must be met by both the Romanian employer and the foreign national.
Work Permit for Highly-Skilled Employees
  • Designed for foreigners employed in a highly-skilled position in Romania, necessitating a local employment contract.
  • Valid for up to 2 years, extendable.
  • Eligibility conditions mandate proof of high skills/qualifications and a salary at least 2 times the average gross salary.
Work Permit for Assignees
  • Valid for a maximum of 1 year, not extendable due to legal restrictions.
  • Based on an employment contract and assignment letter issued by the employer outside Romania.
  • Certain conditions apply for foreigners with residence permits in an EU or EEA country or Switzerland.
Work Permit for ICT Worker
  • Assignment duration varies, up to 3 years for managerial or specialist roles and up to 1 year for trainees.
  • Criteria include professional experience, technical or management knowledge, and consecutive months’ experience within the same company.
  • ICT permit holders from other EU states can begin activities in Romania upon the company’s application registration.

Top Cities with Remote Talent in Romania

Romania has emerged as a promising destination for digital nomads and remote workers, bolstered by its recent introduction of a special digital nomad visa. Positioned to become Europe’s new hotspot, Romania boasts key features that appeal to remote professionals, including reliable and fast internet connections, accessible housing, stunning natural landscapes, and a low cost of living.

Bucharest 

  • Overview: As Romania’s largest city and the EU’s 5th largest, Bucharest serves as the main economic hub and offers a bustling big-city life. Recognized as the world’s best city for remote work, it hosts a thriving IT industry and startup scene.
  • Attractions: Charming old town, historical sites, and extensive flight connectivity.
  • Co-working Options: Tech Hub, Commons Romania, Impact Hub, Hotspot Workhub.

Brasov 

  • Overview: With a population of around 250,000, Brasov stands out as a mid-sized town surrounded by picturesque landscapes. Ideal for nature enthusiasts and winter sports lovers, it is situated at the foot of the Carpathian mountains
  • Attractions: Cobblestone streets, proximity to skiing options, and historical landmarks.
  • Co-working Options: KoolWerk, Hubba Hubba, Hub 1317.

Constanta

  • Overview: Constanta, a port city on the Black Sea coast, offers a base for exploring the region. With around 300,000 inhabitants, it boasts affordability and good connectivity to Bucharest.
  • Attractions: Black Sea coast exploration, historical sites.
  • Co-working Options: Tomis Hub Constanta, B.House.

Timișoara

  • Overview: As Romania’s third-largest city and a major tech hub, Timișoara features a pedestrian old town, parks, and a vibrant outdoor cafe culture. Well-connected to Hungary and Serbia, it’s an excellent base for exploration.
  • Attractions: Historic charm, outdoor culture, proximity to neighboring countries.
  • Co-working Options: Workify Workify, Cowork Timisoara – The Garden.

Cluj-Napoca

  • Overview: Romania’s second-largest city, Cluj-Napoca, has evolved into an IT stronghold with a youthful population. It offers a mix of historical landmarks, universities, and a lively nightlife.
  • Attractions: Educational institutions, nightlife, cultural events.
  • Co-working Options: Cluj Cowork, ClujHub, Silicon Forest.

Things to Consider Before Choosing Romania

  • Schengen Status: Romania is an EU member but not part of Schengen. Visa considerations should align with this distinction.
  • Permanent Stay: For those considering permanent residence, setting up a local company involves costs and time.
  • Expectations: Romania is a wonderful country, but it remains a conservative society.
  • International Image: While corruption and crime are concerns, they are unlikely to affect visitors directly.
  • Road Safety: Romania faces road safety challenges, and caution is advised for drivers.

EOR Solutions in Romania

EOR for Prospective Employees:
Mercans offers seamless Employer of Record (EOR) solutions for businesses that have already identified their ideal candidates in Romania. Our services encompass every aspect of the employee lifecycle, ensuring compliance with Romanian labor laws and regulations.
EOR + Recruitment
For those seeking assistance in talent acquisition, our EOR and recruitment services provide a holistic solution. We tap into our extensive network and expertise to help you find, onboard, and retain top talent, streamlining your expansion into the Romanian market.
Visa Sponsorship and Global Mobility
Navigating the intricacies of expatriate employment is simplified through our visa sponsorship and global mobility services. We facilitate the relocation of your international workforce, ensuring compliance with Romania immigration and employment laws.
AOR for Contractor Payments
Businesses grappling with contractor payments can leverage our Assistance on Record (AOR) services. We handle the complexities of contractor payments, guaranteeing accuracy and compliance.
Converting Freelancers to Employees
Mercans supports the transition from independent contractors to permanent employees in Romania. Our expertise ensures smooth conversions while adhering to legal requirements.
HCM Integration
Integrate Mercans’ EOR services seamlessly with your HCM system in Romania for real-time data exchange, enhanced compliance, and cost-efficiency. Trust our expertise for a unified, compliant, and efficient approach, elevating your workforce management and payroll operations.

Best Employer of Record Romania

View details

Conclusion

Embark on a confident entry into the Romanian market with Mercans’ effective Employer of Record (EOR) solution, guaranteeing strict compliance with the nation’s labor regulations. Effortlessly navigate the complexities of business expansion, cultivating a successful global footprint. Rely on Mercans’ local experts in Romania for comprehensive guidance on every aspect of expanding your business in the country.

This document was prepared for informational purposes only. As local laws & regulations keeps on changing. Please consult your tax & legal advisors as well.
Contact Sales
Let's get this conversation started. Tell us a bit about your requirement, and we'll get in touch a soon as we can.