Employer of Record (EOR) in Romania - Hire Employees and Contractors in Romania

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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 must register the contract in the General Employee Register (REGES / REGES-ONLINE) 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

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.

Feature	Employee	Independent Contractor
Legal Relationship	Individual employment contract	Civil/service contract
Taxation	Employment income; employer withholds payroll tax and contributions	Usually independent activity income; contractor handles own tax filing and payments
Benefits	Entitled to Labour Code protections and employee benefits	Generally not entitled to employee benefits unless contractually agreed
Working Hours	Set by employer and subject to labour-law working-time rules	More flexible; set mainly by contract
Taxes and Contributions	Employer withholds income tax and social contributions	Contractor generally pays own income tax and, where applicable, social contributions
Liability for Work-related Accidents	Employer has workplace and labour-law responsibilities; work insurance contribution applies	Generally bears own business risk; coverage depends on contract/insurance
Termination Process	Governed by Labour Code rules	Governed mainly by contract terms and Civil Code rules
Training and Equipment	Often provided by employer as needed for the role	Usually responsible for own tools, training, and equipment
Job Security	Higher protection under labour law	Lower protection; usually project- or service-based
Legal Recognition of Relationship	Recognized as employment where there is subordination/dependence	Can be reclassified if the real relationship functions like employment

Payroll in Romania

Payroll Essentials for Romania

Government requirements

Registration of Local Employees

Employment relationships must be recorded in the General Employee Register (REGES / REGES-ONLINE) before the employee starts work.

Registration with the Tax Office

Registration with the appropriate Tax Office is generally handled through the company’s tax registration and payroll reporting obligations.
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, where applicable.
Supporting employment and corporate registration documentation, as required by the competent authority.
Deadlines and documentary requirements depend on the employer’s setup and tax status.

Registration with the General Employee Register

Employers must prepare and submit information to the electronic General Employee Register.
Employers may manage filings internally or engage an authorized service provider, in accordance with the applicable rules.

Filing Deadlines:

New Employment Contract: File one working day before the start date.
Contract Termination: Record by the termination date, in accordance with the applicable register rules.
Contract Suspension: File within the legal deadline applicable to the type of suspension.
Amendment of Employment Contract: Record at least one working day prior to the relevant changes, unless a specific legal exception applies.

Penalties for Non-compliance:

Penalties apply for failure to comply with employee register and payroll reporting obligations, in line with the current labour and tax legislation.

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 withhold and remit the employee social security and health contributions, and must pay the employer-side labour insurance contribution where applicable.
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 may have obligations linked to the disability quota system and related contributions, depending on headcount and compliance with employment quota rules.
Payroll-Related Statistics Reports: Employers are required to compile and submit payroll-related statistics reports to governmental authorities, where applicable.
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 where required, 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 Employee Register, 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 by government decision. In 2026, the national gross minimum salary is RON 4,050 per month until 30 June 2026 and RON 4,325 per month from 1 July 2026.
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 working days of annual paid leave.
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 more than 10 employees must initiate collective bargaining at company level, in line with the collective dialogue rules in force.
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 working days for dismissals not related to disciplinary actions.
Employee’s File Administration: Employers are required to maintain 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 income. Employers bear the cost for the first days of medical leave according to the applicable rules, with subsequent reimbursement or payment handled through the health insurance system depending on the leave type.

Parental Leave (Long Childcare Leave)

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

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 explicit general legal obligation to provide payslips in a specific format; 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.
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 Employee Register, the personal file of each employee, and the statutory monthly payroll statement must be stored in accordance with the applicable employment, accounting, archiving, and data protection rules. 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 or transferred in line with the applicable corporate and archiving rules.
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)
- GDPR and the Romanian personal data protection framework in force
- Labor Code (Law 53/2003)
- The rules governing the General Employee Register
- Law on Trading Companies No. 31/1990

Banking requirements related to payroll

Salary Transfer: There are no general legal restrictions regarding salary transfers. However, it is generally advisable to process payroll payments through a Romanian bank account to facilitate compliance with local regulations and local currency payments.
Currency of Payment: Salaries are typically paid in Romanian leu (RON). Foreign citizens employed in Romania may receive their salaries in foreign currency only where this is legally permissible and contractually documented.
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. Compliance with the Romanian Fiscal Code and related procedure rules is essential for timely and accurate payments.

Minimum Wages

The current minimum wage in Romania is RON 4,050.00 per month through 30 June 2026. From 1 July 2026, the national gross minimum wage increases to RON 4,325.00 per month. These figures are stated in Romanian leu and are presented before tax deductions.

Minimum Wage Overview:

Per month RON 4,050.00 through 30 June 2026, and RON 4,325.00 from 1 July 2026
Per hour The hourly equivalent depends on the applicable monthly working time used for payroll calculation.

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 in accordance with the employment contract and the employer’s payroll practice.

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 the Fiscal Code and related legislation in force. These contributions also take into account 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: Additional employer pension contributions apply only for particular or special 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%
Applicability and calculation depend on the annual income thresholds and the fiscal rules in force for the relevant year.

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

Health Insurance Contribution 10%
Applicable thresholds depend on annual gross or taxable income and the Fiscal Code in force.

Other Taxes

Value-Added Tax (VAT): Standard rate of 19%.
Net Wealth/Worth Taxes: Romania does not levy a general net wealth tax. Inheritance and gift taxation operate under the current tax and notarial framework.
Property Taxes
- Building Tax and Land Tax: Local property taxes apply under the Fiscal Code, with exact rates depending on the type and use of the property and on local council decisions.

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 generally incurs the employer-side labour insurance contribution and any company-specific costs or benefits that may apply. Total hiring cost will therefore depend on the compensation structure, any statutory employer obligations triggered by the role, and any optional benefits offered by the employer.

Description	Amount (RON)
Gross Annual Salary	9,999.96
Work Insurance Contribution (CAM)	225.00
Teleworking Indemnity	Variable / only if granted
Disability Cost	Not a standard fixed employer cost
Total Annual Employer Costs	225.00 + variable items
Total Annual Cost	10,224.96 + variable items

Personal Income Tax

Tax Residency for Romanian Citizens

Romanian citizens domiciled in Romania are generally considered tax residents.
Taxable on worldwide income, subject to the Fiscal Code and any applicable double tax treaty provisions.
Exemptions may be available with tax residence certificates under double tax treaties (DTT).
Romanian tax residence rules should be checked carefully in cross-border cases.

Taxation for Non-Domiciled Romanian Citizens and Foreign Individuals

Romanian citizens not domiciled in Romania and foreign individuals are generally taxed on Romania-sourced income unless they become Romanian tax residents.
Worldwide taxation may apply 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 apply to certain categories such as dividends, capital gains, income from property transfers, and gambling activities.
Rates for these exceptions may vary based on the income category and current fiscal rules.

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 working days of annual leave, in addition to public holidays.
Specific conditions warrant additional leave: employees under 18, those working in hazardous environments, or those with disabilities or blindness receive at least three extra working days.
Anticipation of Paid Time Off (PTO) is possible with employer agreement.
Unused annual leave must generally be granted within 18 months from the year following the one in which it was accrued.

Sick Leave

Employees are entitled to medical leave and the corresponding allowance, subject to statutory contribution and certification requirements.
The employer bears the cost for the first period of medical leave according to the applicable rules, after which the health insurance system covers the benefit according to the leave type.
Doctor’s certificate and employer notification are required.
The allowance percentage depends on the type of medical leave provided by law.

Personal Leave

Employees can take unpaid leave for personal reasons.

Careers Leave

Employees are also entitled to statutory leave rights such as caregiver leave and leave for caring for a sick child, subject to the applicable legal conditions.

Maternity Leave

Pregnant employees receive 126 days of maternity leave, typically divided before and after birth, with at least 42 days taken after childbirth.
Maternity leave is generally paid at 85% of the calculation base through the social insurance system.

Paternity Leave

Fathers are entitled to 10 working days of paternity leave, and an additional 5 working days can be granted if the father has completed a childcare course.
Paternity leave is paid by the employer.

Parental Leave

Parents are generally entitled to parental leave until the child turns two years old, or three years old for a disabled child, subject to the statutory conditions.
The allowance is paid by the state, generally at 85% of the relevant calculation base, within the legal minimum and maximum limits.
Specific non-transferable portions and return-to-work protection rules apply under the current legislation.

Overtime Pay

The employer is obligated to compensate overtime primarily with paid time off within the following 90 calendar days. If compensation with time off is not possible, the employer must make an additional payment, the sum of which must not be less than 75% of the base salary for the overtime worked. If overtime work is performed on public holidays, the employer must choose between compensating the employee with paid time off within the subsequent 30 days or making an additional payment equivalent to at least 100% of the base salary.

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 protected periods such as certain leave periods, temporary disability, quarantine, or pregnancy if the employer was aware of the pregnancy, except in cases expressly allowed by law.
Notice Period: Employees are entitled to a minimum notice period of 20 working days before dismissal for reasons not related to disciplinary misconduct. In case of resignation, the notice period cannot exceed 20 working days for execution roles and 45 working days for management roles.
Severance Pay: Romanian law does not generally impose a universal statutory severance payment for all dismissals, although severance may apply under collective agreements, internal policies, or specific restructuring arrangements.

Work Permit in Romania

Securing a work permit is mandatory for most 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 does not confer general permission for employment in Romania. It is specific to a single employer and a particular position. If a foreign individual changes employer, a new work authorization or the relevant change-of-employer process is generally required under immigration law.

After entering Romania, the foreign national must normally obtain a single permit or, where applicable, an EU Blue Card.

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 employment and residence status granted under Romanian immigration rules.
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, requiring a qualifying employment contract.
The immigration route may lead to an EU Blue Card where the statutory conditions are fulfilled.
Eligibility conditions include proof of qualifications and meeting the remuneration threshold required by the immigration rules in force.

Work Permit for Assignees

Based on the employment relationship with the employer outside Romania and the relevant assignment documentation.
Validity and extension possibilities depend on the legal category of the assignment.
Certain conditions apply for foreigners with residence permits in an EU or EEA country or Switzerland.

Work Permit for ICT Worker

Assignment duration varies depending on the role and the applicable intra-corporate transfer rules.
Criteria include professional experience and the conditions laid down for intra-corporate transferees.
ICT permit holders from other EU states may perform activities in Romania subject to the applicable notification and mobility rules.

Top Cities with Remote Talent in Romania

Romania has emerged as a promising destination for digital nomads and remote workers, supported by its digital nomad visa framework, strong internet connectivity, accessible housing in many cities, and comparatively moderate living costs. Since 1 January 2025, Romania has also been a full member of the Schengen Area, which is an important update for cross-border travel planning.

Bucharest

Overview: As Romania’s largest city, Bucharest serves as the main economic hub and offers a bustling big-city life. 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 one of Romania’s major tech hubs, 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: Cluj-Napoca has evolved into a major 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 and, since 1 January 2025, a full member of the Schengen Area.
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 relatively conservative society in many respects.
International Image: Businesses and visitors should evaluate practical legal, compliance, and local market realities rather than relying on stereotypes.
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

Why Mercans is the Leading Employer of Record in Romania:

Compliant with Romanian employment regulations: Mercans ensures full compliance with all relevant Romanian labor, payroll, tax, and immigration requirements, maintaining high standards of legal adherence to protect both employers and employees.
Independent Entity:Operating as a standalone entity, Mercans provides reliable and customized employment services, catering specifically to the needs of businesses in Romania.
Versatile Employment Solutions:Mercans effectively manages a variety of employment types, including full-time employees, freelancers, contractors, and expatriates, offering flexible solutions to meet diverse business needs.
Designed for Large Enterprises:Tailored to support the requirements of large enterprises, Mercans delivers scalable and sophisticated services that accommodate complex organizational structures.
Multi-Currency Payroll Management:Mercans facilitates payroll processing in multiple currencies, streamlining financial operations for both local and multinational businesses.
Global Reach with Multi-Country Payroll Expertise:With a robust global network, Mercans excels in managing payroll across multiple countries, ensuring seamless international operations for businesses.
Adherence to Data Protection Standards:Mercans is committed to data security, holding GDPR certification and adhering to SOC 1 and SOC 2 compliance standards to protect client and employee information.
ISO Certifications:With ISO 20000 and ISO 27001 certifications, Mercans showcases its commitment to high-quality IT service management and robust information security practices.
OWASP ASVS 3.0 Compliance:Mercans meets the OWASP ASVS 3.0 standards, implementing rigorous security measures in application development and management.
HRBlizz:Mercans HRBlizz is a proprietary global payroll and talent management SaaS platform designed to streamline payroll processes while ensuring compliance with local regulations. With over 1,000 in-country specialists, it offers in-depth knowledge of Romanian labor laws and business protocols.
G2N Nova:G2N Nova delivers global gross-to-net payroll processing in over 100 countries, making it one of the most advanced native payroll engines available. Offered as a SaaS or service delivery platform, it can function independently or integrate seamlessly with major Human Capital Management (HCM) and Workforce Management systems

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.

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FAQs

What is an Employer of Record in Romania?

An Employer of Record (EOR) in Romania is a third-party service provider that legally employs workers on behalf of another company. The EOR manages all employment-related responsibilities, including contracts, payroll, taxes, benefits, and compliance with Romanian labor laws, enabling businesses to hire employees without establishing a local entity.

How can foreign companies hire employees in Romania without establishing a local entity?

Foreign companies can engage an EOR to hire employees in Romania. The EOR assumes the legal employer role, handling all statutory obligations, while the client company manages the employee’s daily tasks. This approach allows businesses to operate in Romania without the need for a local branch or subsidiary.

What compliance, payroll, and HR services does an EOR in Romania provide?

An EOR in Romania ensures compliance with local labor laws by managing employment contracts, processing payroll, withholding and remitting taxes, making social security contributions, administering mandatory benefits, and completing statutory filings. They also handle work permits and visa sponsorship for expatriate employees.

What are the advantages of using EOR services in Romania?

Utilizing an EOR in Romania offers several advantages: it simplifies market entry by eliminating the need for a local entity, ensures compliance with complex labor laws, reduces administrative burdens, mitigates legal risks, and accelerates the hiring process.

How much does it cost to hire employees through an EOR in Romania?

The cost of hiring through an EOR in Romania varies depending on the provider and the services included. Generally, fees can range from $500 to $2,000 per employee per month. It’s advisable to consult with the EOR provider for a detailed pricing structure.

Is an EOR the best option for expanding a business into Romania?

An EOR is an effective solution for businesses looking to expand into Romania without the complexities of setting up a local entity. It provides a compliant and efficient way to hire employees, allowing companies to focus on their core operations while the EOR manages employment-related tasks.

Employer of Record (EOR) Romania