Registration of the employees’ contracts
Each employer shall be under the obligation to settle an internal general register record of all the employees, in electronic format, which shall be transmitted to the Territorial Labour Inspectorate.
An employment contract can only be validly concluded in writing, in the Romanian language and is duly registered in the employees’ general register record, which is submitted to the Labour Inspectorate no later than the day before the employee starts work.
To verify the employee’s skills, at the conclusion of the individual employment contract for unlimited duration, a probationary period of no more than 90 calendar days for the executive positions and a maximum of 120 calendar days for the management positions may be established.
In Romania, the minimum wage for 2022 is RON 2,550.
For the employers in the constructions field, if minimum 80% of turnover comes from construction activities, the minimum wage is RON 3,000.
The standard working day for full-time employment is 8 working hours per day, five days a week (40 hours per week). The maximum legal working time may not exceed 48 hours per week, including overtime.
For overtime working hours and time worked during public holidays, employees are entitled to free paid hours, otherwise the employees are entitled to a supplementary pay of a minimum 75% of the base salary for overtime work and a minimum of 100% of the base salary for time worked during public holidays.
Time Off & Paid Leave
The Romanian Labour Code specifies 15 public holidays and offers flexibility around religious holidays for people of non-Christian religions if the religion is recognized by the State.
Additionally, employees receive a minimum of 20 paid vacation days per year, which may be taken in instalments as long as the employee takes in a calendar year, at least 10 working days of uninterrupted leave. All vacation must be taken in the year earned.
The employees are covered by Health and Social security systems and are entitled of sick leaves and benefits.
Depending on the collective agreement/internal regulations/employment contract terms, an employee may be allowed additional leave types. These must be approved between the employer and employee.
Termination of Employment Contracts
Based on the employee’s initiative (resignation), the individual employment contract can be terminated provided that a notice period is observed, as follows:
- 45 working days for a management position;
- 20 working days for an executive position.
The termination of an individual labour agreement at the employer’s initiative (dismissal) must be based just upon specific regulated situations.
In the last three situations mentioned above, the employer must grant the employee a prior notice of termination of at least 20 working days.
There is no statutory severance pay in Romania unless other conditions have been set in a collective agreement.
The termination based on mutual agreement is a quick and easy way to end an employment contract and it can be initiated by either the employee or the employer.
Limited duration individual employment contracts are rightfully terminated at the date agreed in the employment contract.
Employee Payroll Contributions
+ 25.00% – Pension contribution
+ 10.00% – Health Insurance
Employee Income Tax
+ 10.00% – Flat rate
Employer Payroll Contributions
+ 2.25% – Work insurance contribution
+ 4% – Contribution for unemployed people with disabilities for companies with more than 50 employees
+ 0% – Pension contributions for normal working conditions
+ 4.00% – Pension contributions for particular working conditions
+ 8.00% – Pension contributions for special working conditions
Ongoing payroll reporting
Declaration D112 is submitted monthly, for all the individuals under employment agreements or assimilated with employees and regarding employer, employees, income and taxes.
Declaration D100 is submitted monthly for the previous month by the employers who have more than 50 employees and includes the employer contribution for unemployed people with disabilities.
Employees’ Annual income statements
Although in other countries it is mandatory to issue an annual income statement after the end of the calendar year for each employee, in Romania there is not the case.