Romania – Employment Terms and Conditions

What are the standard working hours in Romania, and how is overtime regulated?

Under the Romanian Labour Code, the standard working week is set at 40 hours, divided across five working days of eight hours each. Employers do have some flexibility in how those hours are distributed throughout the week, provided the overall weekly total is respected.

Romanian legislation requires that average total working time — including any overtime — must not exceed 48 hours per week when calculated over a reference period, which is ordinarily four months and may be extended to six months by collective agreement. This approach mirrors the EU Working Time Directive’s framework, though Romanian law is more restrictive than the European minimum in certain specific areas.

Overtime may only be worked at the explicit request of the employer and requires the employee’s agreement, with the exception of emergencies such as natural disasters or urgent works needed to prevent or limit the effects of an accident. Workers under the age of 18 are barred from working overtime, as are employees on part-time contracts.

As a first step, overtime must be offset through compensatory paid leave granted within 90 days of the overtime being worked. Where this is not feasible within that window, the overtime must be remunerated through an addition to the employee’s salary. The rate of this addition is determined through negotiation in the collective labour agreement or individual employment contract, and may not fall below 75% of the employee’s base salary.

Employees whose shift exceeds six hours are entitled to a break — generally at least 30 minutes. A minimum uninterrupted rest period of 12 hours between consecutive working days must also be observed, though shift workers may have this reduced to eight hours. All employees are entitled to at least 48 consecutive hours of weekly rest, which typically falls at the weekend.

Different rules apply in various sectors. Healthcare workers may operate on 12-hour shift patterns paired with extended recovery periods; transport employees must adhere to EU-harmonised limits on driving time and rest; and security or manufacturing staff frequently work rotating night or weekend schedules. Any work carried out between 10 p.m. and 6 a.m. is classified as night work, and an employee whose shift includes at least three hours during this period — or who works at least 30% of their monthly hours at night — is defined as a night worker. Night workers are generally entitled to supplementary pay, typically a premium of 25% on top of their standard hourly rate.

What employment rights and benefits are workers entitled to in Romania?

While employers and employees are free to negotiate the specific terms of their working relationship, the law establishes a floor of minimum rights that cannot be contracted away or reduced below the statutory baseline. These protections apply equally to legally employed foreign nationals on the same footing as Romanian workers.

The Labour Code guarantees every employee a minimum of 20 working days of annual leave per year — measured in working days rather than calendar days. Where a collective agreement is in force, employees may receive an additional four days, bringing the total to five weeks. Particular groups — including employees under 18, workers with disabilities, those in hazardous roles, and women undergoing in vitro fertilisation — may be entitled to up to three extra days on top of the standard allowance.

Romania observes 15 public holidays each year. When an employee is required to work on one of these days, they are ordinarily entitled either to equivalent time off within 30 days or to additional pay of at least 100% of their base salary for those hours. Public holidays that coincide with a weekend are generally not replaced by an alternative rest day.

Female employees are entitled to 126 days of maternity leave per birth, with a mandatory minimum of 42 of those days taken following delivery. Throughout this period, the employee receives a benefit equal to 85% of her average monthly gross earnings calculated from the six months preceding the leave within the prior 12 months. This payment is made through the National Health Insurance Fund rather than by the employer directly.

New fathers are entitled to 10 working days of paid paternity leave, which may be extended to 15 days if the father completes a certified infant care course. Paternity leave is funded by the employer at the employee’s usual wage rate and must be taken within the first eight weeks following the birth.

Once maternity leave concludes, either parent may take parental leave until the child’s second birthday, or the third birthday in the case of a disabled child. During parental leave, the parent may receive up to 85% of their regular income.

As of August 2025, Romania introduced a graduated approach to calculating sick leave benefits for temporary incapacity caused by ordinary illness or non-occupational accidents. Rather than a single flat rate, the benefit is now 55% of the reference income for absences of up to seven days, rising to 65% for eight to fourteen days, and 75% from the fifteenth day onward, based on average income over the preceding six months. Employees may take up to 183 days of sick leave per year on the strength of a medical certificate, with extensions beyond 91 days requiring sign-off from a specialist physician.

Romanian law prohibits employers from dismissing an employee during maternity or parental leave, or within six months of the employee’s return to work, except in specifically defined circumstances such as company insolvency.

What are the rules around minimum wage and pay in Romania?

Romania maintains a statutory national minimum wage — known as the salariul de bază minim brut pe țară garantat în plată — which is binding on all employers regardless of sector or company size. The government sets this figure and reviews it periodically in line with economic indicators, inflation data, and other relevant benchmarks.

With effect from 1 January 2025, the national minimum gross monthly wage stands at RON 4,050 (approximately EUR 814 or USD 860), placing it at the lower suggested threshold of 47% of the median wage. This equates to an hourly rate of RON 24.50 based on a standard working month of 168 hours. Once social contributions and income tax have been deducted, the take-home minimum wage is approximately RON 2,430 (around EUR 500 net).

Elevated minimums exist in certain sectors: from 1 July 2024, the minimum gross monthly wage for construction sector roles was set at LEI 4,582 (approximately EUR 920). Collective agreements in various industries may establish their own pay scales for different employee categories, and separate statutory salary grids govern public sector employees.

From January 2025, legislation requires the minimum wage to be reviewed and set once annually at the start of January, with the statutory figure to be determined in accordance with a reference band of approximately 47–52% of the average wage. Since the rate is updated every year, the most reliable source for current figures is the Romanian Ministry of Labour, Family, Youth and Social Solidarity.

The minimum wage is legally defined as the base wage only, meaning that it excludes bonuses, meal vouchers, transport allowances, performance incentives, or any other supplementary pay elements. Such benefits are calculated separately and sit above the statutory floor.

How does the employment contract system work in Romania?

The cornerstone of Romanian employment law is Law No. 53/2003 — the Labour Code — which has been revised multiple times and was most recently consolidated through its republication on 17 November 2024. Every employment relationship must be set out in a written contract concluded prior to the employee’s first day of work.

The Labour Code recognises various contract types depending on duration and working arrangement. Open-ended contracts have no fixed end date and continue until one party gives notice in accordance with the Code’s provisions. Fixed-term contracts are also permissible but are subject to statutory ceilings on their total duration and the number of times they may be renewed. Part-time contracts must expressly state the number of hours per day and per week, with a legal minimum of ten hours per week and two hours per day.

A valid employment contract in Romania must contain a defined set of mandatory elements: the full identities of both parties, a clear job description and designated place of work, the commencement date, remuneration, working hours, rest entitlements, notice requirements, and the length of any probationary period. The Labour Code explicitly prohibits contractual provisions that would allow the parties to circumvent the statutory maximum working hours or treat overtime pay as already embedded within the agreed salary.

Probationary periods are permitted and their length varies by position. For standard roles the probationary period is ordinarily up to 90 calendar days; for managerial positions this may extend to 120 days. During the probationary period, either party may end the contract on shorter notice than would otherwise apply. Once probation has concluded, a lawful dismissal must be grounded in a documented disciplinary or economic justification — for instance, serious misconduct or repeated breaches of workplace rules. Employees subject to dismissal are entitled to a minimum notice period of 20 working days for most roles, though more generous terms may be provided under collective agreements.

How does the workplace pension system work in Romania?

Romania’s mandatory employee benefits framework incorporates a three-pillar pension structure. While this architecture broadly resembles multi-tier systems found in countries such as the Netherlands and Sweden — each combining public, mandatory private, and voluntary components — the specific contribution percentages and administrative arrangements in Romania are distinct.

Pillar 1 — State Pension: The first pillar comprises mandatory contributions to the public pensions system. As of 1 January 2024, employees contribute 20.25% of their gross salary to this fund. For employees working under normal conditions, the employer contributes 0%, though employers must contribute at a rate of 4% or 8% where working conditions are classified as difficult or hazardous respectively.

Pillar 2 — Mandatory Private Pension Funds: The second pillar requires employees to contribute to a privately managed pension fund, at a rate of 4.75% of gross salary as of 1 January 2024. In contrast to the UK’s auto-enrolment scheme — where workers are enrolled by default but retain the option to opt out — Romania’s Pillar 2 is entirely compulsory for most employees below a specified age, with contributions deducted automatically through payroll. These funds are overseen by licensed administrators regulated by the Financial Supervisory Authority (ASF).

Pillar 3 — Voluntary Private Pension: The third pillar consists of optional additional retirement savings. Employees — and in some cases their employers — may make voluntary contributions to licensed private pension products, which carry certain fiscal incentives under Romanian tax law.

For up-to-date contribution rates and regulatory information, refer to the National Public Pension House (Casa Națională de Pensii Publice — CNPP) and the Financial Supervisory Authority (ASF).

What types of pension arrangements are available to expats in Romania?

Expats who are legally employed in Romania and contributing to the Romanian social insurance system are generally entitled to participate in the state pension scheme (Pillar 1) and are automatically enrolled in the mandatory private pension fund (Pillar 2) on the same basis as Romanian citizens. Building up a future entitlement to the state pension depends on accumulating an adequate contribution record, so expats who arrive mid-career should monitor their contribution history carefully from the outset.

Romania has concluded bilateral social security agreements with a number of countries. Under the terms of these treaties, periods of insurance completed in Romania and in the partner country may in certain circumstances be combined — a process known as “totalisation” — to satisfy the minimum qualifying period required to claim a pension in either state. EU citizens benefit from EU social security coordination rules, which provide comparable portability across all member states. Where an individual has worked in more than one EU country, their insurance periods across each can generally be aggregated to determine entitlement, although the pension paid by each country is calculated independently based on contributions made there.

For nationals of countries outside the EU that have not entered into a bilateral agreement with Romania, contributions made to the Romanian state pension may not be straightforwardly transferable or recoverable from abroad — the outcome depends entirely on whether a relevant treaty exists and what it provides. Professional advice from the CNPP and a financial adviser experienced in cross-border pension matters is strongly recommended before drawing any conclusions about how Romanian contributions will interact with entitlements held in other jurisdictions.

Private pension arrangements established in other countries are not subject to Romanian regulation and remain governed by the laws of the jurisdiction in which they were set up. Expats may elect to continue contributing to such schemes alongside their Romanian arrangements, though the Romanian tax treatment of contributions to foreign pension products should be verified with the National Agency for Fiscal Administration (ANAF).

What is the retirement age in Romania, and how does the pension eligibility system work?

Romania has been progressively harmonising the retirement ages of men and women. As of 2025, the standard retirement age for men stands at 65. The retirement age for women has been rising in stages and is legislated to reach 63 by 2030 under the ongoing reform programme. Separate rules apply to specific professions — including military personnel, police officers, judges, and workers in hazardous occupations — whose retirement ages are governed by dedicated legislation.

To qualify for a full state pension under Pillar 1, an employee must accumulate the requisite minimum contribution period (stagiu de cotizare). As of 2025, the complete standard qualifying period is 35 years for men and is being phased upward for women in parallel with the rising retirement age. Workers whose contribution record falls short of the full qualifying period may still be eligible for a proportionally reduced pension, provided they have met a minimum threshold — generally in the region of 15 years of contributions. Those who have not reached even this minimum may not qualify for a contributory pension; however, social assistance pension provisions are available for elderly individuals with very limited means.

Romania has been implementing substantial pension reform over recent years, encompassing revisions to the benefit calculation formula and the indexation methodology. As a result, the precise entitlement amounts and qualifying thresholds are subject to change. Current retirement ages, contribution requirements, and calculation rules should always be verified directly with the National Public Pension House (CNPP).

What taxes and social contributions are deducted from wages in Romania?

In Romania, both income tax and social security contributions are withheld at source by the employer, so most employees have no obligation to submit a separate annual tax return unless they receive income from sources beyond their employment. This approach is broadly comparable to payroll withholding systems such as PAYE in Ireland or the equivalent mechanism in France, where the employer acts as the collection agent on behalf of the tax authority.

Romania applies a flat income tax rate of 10% to salaries, bonuses, and other taxable employment benefits. An exemption applies to the first RON 300 of the national minimum wage, allowing those at the wage floor to retain a portion of their earnings free from income tax.

The principal deductions applied to gross pay are as follows:

• Income tax: 10% flat rate on taxable income, withheld at source.
• Social insurance contribution (CAS — Pillar 1): 20.25% for employees as of 1 January 2024.
• Mandatory private pension (Pillar 2): 4.75% for employees as of 1 January 2024.
• Health insurance contribution (CASS): 10% of gross income, funding entitlement to public healthcare services.

Expats who are nationals of other EU member states are generally liable to Romanian tax on their Romanian-sourced earnings from the commencement of employment. Non-EU nationals who become Romanian tax residents — broadly, those who spend more than 183 days per year in the country or whose principal economic interests are located there — become liable to Romanian tax on their worldwide income, though double taxation treaties may neutralise or reduce simultaneous tax exposure in Romania and their country of origin. For advice tailored to your individual circumstances, contact the National Agency for Fiscal Administration (ANAF).

What are the rules around trade unions and collective bargaining in Romania?

Romania has a dedicated legislative framework covering workplace health and safety, trade union activity, social dialogue, and collective bargaining. Trade unions are present across most significant industries, including manufacturing, construction, healthcare, education, and the public sector, although union membership rates differ substantially across sectors and geographic areas.

The Romanian Labour Code establishes the statutory floor for employee rights and working conditions. Where collective bargaining agreements are in place, they may improve upon these statutory minimums — for example by providing longer annual leave entitlements, more generous sick pay arrangements, or additional financial benefits — but they cannot undercut the legal baseline. Concluding a collective labour agreement is not a legal obligation for employers.

All employees have the legal right to engage in collective bargaining. The law prescribes a specific type of agreement for public servants, though the distinction is largely formal in nature. Certain categories of workers — magistrates and military personnel among them — are excluded by law from union membership. In general, there are no restrictions preventing legally employed foreign nationals from joining a trade union in Romania, but it is worth confirming this directly with the union concerned.

Once a collective agreement expires, its provisions cease to have automatic legal effect. Unions occasionally negotiate clauses that maintain the agreement’s terms until a new one is concluded, but such provisions are uncommon in practice. Expats working in unionised environments should determine whether a collective agreement governs their workplace and, if so, familiarise themselves with the additional entitlements it may provide.

Are there any particular employment protections or challenges that expats should be aware of in Romania?

The Romanian Labour Code is the principal legal instrument regulating employment, addressing working time, leave, notice, and the grounds on which dismissal may lawfully occur. As a member of the European Union, Romania also incorporates EU directives into its domestic employment legislation, which means many workplace standards align with those in force across the rest of the bloc — a degree of familiarity that can be reassuring for expats arriving from other EU countries.

One of the most frequently encountered practical difficulties for expats is that employment contracts, payslips, internal HR documentation, and day-to-day workplace communications are normally in Romanian only. Unlike some jurisdictions where large employers routinely issue bilingual contracts, this is not standard practice in Romania. Expats should insist on obtaining a professionally translated copy of any contract before appending their signature, and engaging a local employment lawyer to review the terms is strongly advisable.

Foreign nationals employed directly by Romanian entities must satisfy the gross monthly salary threshold of RON 4,050 (as of January 2025) under the terms of their work and residence permits. EU Blue Card holders face a higher gross monthly threshold of RON 7,567, reflecting the higher-skill criteria attached to that permit category. Permit status can restrict which positions a foreign national may legally fill, and switching employers will generally require a fresh permit application — employment rights during any transition period should be carefully monitored.

Recognition of professional qualifications obtained abroad is another matter to address at an early stage. Qualifications earned in other EU member states are subject to the EU’s mutual recognition framework, whereas credentials from non-EU countries may require formal assessment by the relevant Romanian professional body or the National Centre for Recognition and Equivalence of Diplomas (CNRED). Regulated professions — including medicine, law, engineering, and architecture — each have their own distinct recognition procedures and timelines.

Expats in Romania are most commonly employed in IT and software development, manufacturing, engineering, banking and finance, shared services centres, and the education sector. These fields tend to show relatively strong adherence to employment law requirements, though the standard of practice inevitably varies between organisations. If you consider that your workplace rights have been infringed, you may raise the matter with the Labour Inspection Authority (Inspectoratul Teritorial de Muncă).

Frequently asked questions

Will my overseas professional qualifications be recognised by Romanian employers?

EU qualifications are generally recognised across EU member states under mutual recognition rules, though regulated professions (such as medicine, law, and engineering) require formal recognition through the relevant Romanian professional body. Non-EU qualifications are assessed on a case-by-case basis through the National Centre for Recognition and Equivalence of Diplomas (CNRED). Allow time for this process before taking up regulated employment, and check the CNRED website or contact the relevant professional association for your field.

Can I access my Romanian Pillar 2 pension contributions if I leave Romania?

Your Pillar 2 contributions are held in a private pension fund account in your name. If you leave Romania before retirement age, you do not automatically lose these funds — they remain invested in your account until you reach the eligible retirement age. In some cases, transfers to pension systems in other countries may be possible depending on bilateral agreements and the fund’s rules. Check with your fund administrator and the Financial Supervisory Authority (ASF) for the most current options.

What happens to my employment rights if my visa or work permit changes?

Statutory employment rights under the Romanian Labour Code apply based on your employment relationship, not your immigration status. However, a change of visa or permit status can affect your right to work legally. If your permit lapses or changes, your employer should be notified and a new permit obtained before you continue working. Gaps in lawful employment can affect contribution records for pension and social insurance purposes. Seek advice from an immigration specialist when any permit change is anticipated.

Are employment contracts in Romania always in Romanian, and what if I don’t understand the contract?

Yes, employment contracts in Romania are typically issued in Romanian, which is the legal language for such documents. You are strongly advised to request a translated version before signing, and to have the contract reviewed by a qualified employment lawyer. Signing a contract you do not fully understand does not exempt you from its terms, so taking time to clarify the content upfront is essential.

Do I need to register with any authority when I start working in Romania?

Your employer is legally required to register your employment contract in the national electronic register (REVISAL) before your first working day. You will also need to register with the relevant local authorities for tax identification purposes. EU/EEA citizens staying longer than three months should register with the local inspectorate for persons (Inspectoratul General pentru Imigrări), while non-EU nationals will require a work permit and residence permit. Contact the General Inspectorate for Immigration for guidance specific to your nationality.

Is my sick pay or maternity pay affected if I have not been employed in Romania for long?

Entitlement to sick leave benefit generally requires that you have contributed to the national social health insurance system for at least six months in the previous calendar year, with some exceptions for serious illnesses. Maternity leave benefit is also linked to prior social insurance contributions. If you are new to Romania and have not yet accumulated the required contribution period, you may have limited or no entitlement to state-paid benefits initially. Check your eligibility with the National Health Insurance House (CNAS).

Can I claim Romanian pension contributions if I retire in another country?

Whether you can claim Romanian pension contributions from abroad depends on whether Romania has a bilateral social security agreement with your country of retirement. EU citizens benefit from EU coordination regulations, meaning Romanian contribution periods count towards eligibility and the Romanian state will pay a partial pension proportional to the years contributed in Romania, even if you retire elsewhere in the EU. Non-EU nationals should check whether a bilateral treaty exists. Contact the National Public Pension House (CNPP) for information specific to your situation, and consider taking advice from a qualified financial adviser familiar with cross-border pension arrangements.

Are there any sectors where expats face particular difficulties finding employment in Romania?

Certain public sector roles, particularly in civil service, national security, and the judiciary, are typically restricted to Romanian citizens. Regulated professions require formal qualification recognition before you can legally practise. In the private sector, expats are most active in technology, manufacturing, finance, and international business services, where demand for multilingual and internationally experienced workers is higher. Language remains a practical barrier in roles requiring direct communication with Romanian-speaking clients or authorities, so assessing Romanian language requirements for your target role early in your planning is advisable.