Employer of Record in Romania
Country Guide
Employer of Record in Romania (EOR Romania)
Capital City
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Employer Taxes
Employee Costs
Payroll Frequency
Hire Globally, Pay Locally, Expand Effortlessly
A global expansion partner like INS Global doesn’t just accelerate your market entry time, it also decreases the potential for errors and offers you expertise and support at every step of the way. INS Global has spent more than 15 years assisting companies of all sizes and across industries. Our team is fully equipped to handle any obstacles or challenges that might arise.
An Employer of Record (EOR) in Romania acts as a legal entity through which you can easily bring over staff to begin operations in the new market. An EOR can also help you find and recruit local talent so that you make strong connections with local businesses, cultures, and resources.
Another similar type of organization is a Professional Employer Organization (PEO). With a PEO you won’t have to worry about compliance issues or keeping up to date with local labor laws. A PEO will handle all aspects of payroll, taxation, and HR services so that you can focus on entering the Romanian market smoothly and quickly.
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The Advantages of a EOR over Company Incorporation
Setting up a new subsidiary or branch overseas involves handling all the required paperwork and processes on your own. This can take months or even a year, and if complications occur then your expansion plan will be delayed even further.
A EOR acts as your local legal entity so that you don’t have to establish a separate physical one in the target market. This allows you to bring over staff and hire new employees much faster.
A EOR also helps you to:
- Enter new markets effortlessly
- Reduce expenses
- Remain legally compliant in every way
- Connect with local businesses and talent pools
PEO/EOR vs Company Incorporation
The Advantage in Figures
PEO/EOR
Company Incorporation
Price
80% Less Expensive
Market Entry
2-5 Days
6 Months
Why Choose to Expand with a Romanian EOR?
Guaranteed Legal Compliance in Every Way
Employment contracts, payroll and tax withholding, hiring, and onboarding all require strict adherence to local labor laws. A EOR will make sure that the company and the employees are always legally secure.
Spend Less, Benefit More
Instead of trying to handle all the different legal and administrative processes on your own, a EOR can handle your needs with professionalism and speed. .
Gives You Time and Energy to Prioritize on Targets
When recruitment, hiring, onboarding, contract management, and payroll are all being taken care of by a global expansion partner, you can focus on managing the tasks only you can do, such as market goals and leading the company to success.
Reduce Wait to a Fraction of the Time
Instead of waiting up to a year to begin with company incorporation, you can set up and start running operations in a new market in just a few days.
One Point of Contact for All Your Expansion Needs
A EOR provides support and guidance for every aspect of global expansion, all through a single platform.
How Does A EOR In Romania Work?
With 4 simple steps, INS Global can help you enter the Romanian market smoothly and safely:
1
We hear your needs and together make a plan that’s tailor-made to your situation.
2
With our EOR in Romania, you can bring in staff and start operations quickly.
3
While you focus on reaching your market goals, we handle all aspects of payroll compliance and HR services.
4
Your staff can continue day-to-day processes as usual, and we can help you find and recruit new talent safely and smoothly.
Is There a Difference Between a PEO and an EOR?
You may have noticed that PEO and EOR are frequently mentioned together. While they offer similar services, there are some distinctions that you should be aware of depending on the country you are based in.
Understanding how these organizations function is vital for you to make the right decision about which one to partner with.
- A PEO and EOR both function as organizations that offer services to employees of other companies. Some of these services include contract management, payroll, taxes, etc.
- An EOR differs in that it also becomes the official employer for any employees it hires on behalf of the client. The EOR remains responsible for those employees and any potential liabilities.
- The contracts made with a PEO and EOR are not the same. In a PEO, the contract is made between the client company and the employee with the PEO often acting as co-employer.
- In an EOR contract, the contract is directed by the client company but officially made between the Employer Of Record and the employee.
INS GUIDES
Check Our Romania Labor Law Guide
Labor Law in Romania - 2025
Employment Contracts
Employee contracts in Romania must be written in Romanian with the salary amount in the local currency of the Romanian leu. Employers also need to register the contract with the Employee’s General Register.
Fixed-term contracts can only be for a maximum of 36 months.
Working Hours
- The minimum wage in 2023 is 3000 RON or around 660 euros a month.
- A typical work week in Romania is 40 hours, 8 hours a day. The total number of hours in a workweek cannot exceed 48 hours, including overtime.
- Overtime is compensated at 75% above normal wages. In place of payment, overtime can also be compensated with paid time off.
- Employees under the age of 18 cannot work overtime and can only work 40 hours a week.
Notice Period
- The required notice period for termination is a minimum of 20 days. For those in managerial positions, this extends to 45 days.
Probation periods
- Probation periods range from 5-45 days, depending on the duration of the contract and the position of the employee.
Types Of Leave
Holidays
- There are 10-12 public holidays in Romania, depending on the religious denomination the employee is associated with.
- Employees who must work on public holidays must be compensated with additional days off within 30 days of the public holiday.
Sick leave
- Employees who make social security payments are eligible for a maximum of 183 days of sick leave.
- Sick leave is paid at 75% or 100% of the salary, depending on the nature of the sickness or injury.
- The first 5 days of sick leave are covered by the employer; the remaining are handled by national social security.
Maternity/Paternity Leave
- Mothers who have contributed to the social security system for a minimum of 12 months prior are eligible for fully paid maternity leave.
- Maternity leave is 126 days, with a minimum of 42 days of leave being required to be taken after birth.
- Parents of disabled children will receive 600 leu a month until the child is 2 or 3 years old.
- Paternity leave is 10 days, and if the father has completed a government childcare course, this period can be extended for 5 days for other children besides the firstborn.
Tax Law in Romania
- Corporate tax is 16%.
- VAT is 19%.
- Income tax is a flat rate of 10%.
- Employers are required to contribute an equivalent of 10% to health insurance tax and 25% to employee pension based on the employee’s salary.
- Employers pay 2.25% for labor insurance and 4% for unusual working conditions.
- Romania has DTT (double taxation treaty) with nearly 100 other countries worldwide.
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Frequently Asked Questions
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
A Global Employer of Record is an effective solutions for companies like yours that are looking to expand a workforce abroad effortlessly.
This approach allows you to outsource the international hiring process quickly and efficiency, providing access to a global talent pool while still managing payroll compliance in each country.