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- Employee Cost Calculator
- Romania
Employee cost calculator in Romania
Looking to hire in Romania? Our Employee Cost Calculator gives you a clear view of expenses including taxes and employer contributions.
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Frequently Asked Questions (FAQs)
What are the mandatory employment costs and statutory benefits for employers in Romania?
Employers in Romania are required to pay the Contribuția Asiguratorie pentru Muncă (CAM) at 2.25% of gross salary, and—depending on job risk—an additional social insurance contribution of 4% for particular working conditions or 8% for special working conditions. Statutory benefits include a minimum of 20 days paid annual leave, paid public holidays, medical leave, and contributions to the public health and pension systems (CAS and CASS).
What payroll tax rates and deductions must be considered when calculating employee and employer obligations in Romania?
Employee payroll deductions include a 25% social insurance contribution (CAS), 10% health insurance (CASS), and a 10% personal income tax (Impozit pe venit), all withheld from gross salary. Employers pay the CAM at 2.25% and, when applicable, an additional 4% or 8% for special/potentially hazardous jobs; there is no employer's general pension contribution for normal working conditions. All payroll taxes are reported and paid monthly to the Romanian tax authorities (ANAF).
What are the common hidden or indirect costs associated with hiring employees in Romania?
In Romania, employers should budget for potential indirect costs such as meal vouchers (tichete de masă), potential severance payments under the Labour Code (Codul Muncii), and administrative fees for payroll management. While a 13th-month salary is not statutory, it may be provided as a bonus in some sectors. Additional costs may arise from mandatory medical checks, workplace safety compliance, and potential overtime premiums.
What legal requirements influence the total cost of employing staff in Romania?
The statutory minimum gross wage (Salariul minim brut pe economie) is set by government decree and must be observed, with higher rates for certain industries. Employment contracts must be in writing and registered with Revisal, and strict rules apply to working hours, overtime pay, and termination—including required notice periods and, in some cases, severance pay. Collective bargaining agreements may introduce additional obligations and costs in certain sectors.
What country-specific employment practices should employers be aware of when hiring in Romania?
Probation periods are commonly used and typically range from 30 to 90 days depending on the role, as permitted by the Labour Code. Most employees are hired on indefinite-term contracts, though fixed-term contracts are permitted under specific conditions and may entail different notice and benefit rules. It is customary to offer meal vouchers, and private medical insurance is increasingly provided as an additional benefit in competitive industries.
