Hiring globally? Discover key employment law changes across 20+ countries happening in 2025 to ensure your team remains compliant.
Download the GuideWork insurance contribution: 2.25%
Social insurance: 25%
Health insurance: 10%
Income tax: 10% flat
Paternity: 10-15 days
Sick leave: unlimited
Parental: number of days/weeks not detirmend. Can be taken up to the child turning 2
Maternity: 126 days
HQ country employment & payroll
Independent contractor agreements
Partnering with a temp agency licence holder in Romania
Setting up a local company in Romania is relatively straightforward. However, the difficult part comes after the initial setup when payroll needs to be calculated and run every month, taxes filed, benefits extended, change of rules and regulations followed. Here is an overview of everything you will find yourself needing to do.
When you hire employees in Romania, you have certain obligations as an employer. HR compliance is about ensuring your policies and procedures respect all applicable laws and regulations regarding employment and work practices. Complying with Romanian labour law is fundamental for the correct running of your business - not only because these laws are in place to protect employees and guarantee their rights are safeguarded, but to minimise your risk of liabilities as an employer. Being compliant means respecting and following all local labour laws, sick leave and illness benefits, annual leave, minimum wage, tax credits, and working hours regulations.
As with every other country, there are certain costs associated with employing a worker in Romania that come on top of the gross salary you are offering. A Romanian employer must make a work insurance contribution. To view the exact percentages and amounts given the salary you are planning to offer, you can use our handy calculator tool.
Boundless as the legal employer through our temp agency licence files all pertinent taxes and social security contributions as they relate to the compliant employment of an individual in Romania.
Any new employee that is locally employed through a temp agency licence holder such as Boundless gets full employment rights and benefits as specified in Romanian labour law. They get a locally compliant employment contract, statutory maternity leave, annual leave, sick leave entitlements, any relevant tax credit, and many more.
Both Romania employers and Romania employees have to pay taxes. For employers, it's making work insurance contributions. Employees make contributions for social insurance and health insurance, and pay income tax. To get a clear overview of both employee and employer taxes, use our salary breakdown calculator, submitting any additional data needed and get a downloadable pdf like this one.
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