Employer of record services in Romania

Yes. We manage Romania’s social contributions, which since the 2018 reform are weighted mostly toward the employee, with the employer paying a smaller work insurance contribution (around 2.25% of salary), along with a flat 10% income tax withholding. We also administer Romania’s statutory minimum of 20 days’ annual leave and Labour Code notice requirements.

Given Romania’s flat tax and relatively lean employer social costs, competitive employers reinvest in meal vouchers, private health insurance, and performance bonuses, all of which carry favorable tax treatment up to certain limits. Romania’s large and growing IT and BPO sector means candidates in these fields actively compare benefits packages, not just salary, between international employers.

Statutory minimum notice is 20 working days, and the Romanian Labour Code sets out specific, limited grounds for lawful termination, with redundancy requiring documented business justification. Romania’s labor courts are generally protective of employees where process isn’t followed precisely, so documentation at every stage of an exit matters.

An EOR can typically onboard within one to two weeks for tax and social contribution registration, compared with the several weeks needed to incorporate a Romanian entity (such as an SRL) and register with the tax authority (ANAF) as a new employer.

Romania’s specific, limited grounds for lawful termination and its distinct post-2018 social contribution structure require local knowledge to manage correctly. An EOR takes on that compliance and liability, which is typically the more efficient way to access Romania’s substantial and cost-competitive tech talent pool.