Employee Leasing in Romania
Romania’s location at the crossroads of three pan-European corridors and its access to the Black Sea make it a very favorable destination for business expansion. The country has a large domestic market of nearly 20 million consumers and provides access to the regional markets of Central and Eastern Europe and the entire EU. Expanding activity into Romania through employee leasing can open up immense opportunities for businesses in various sectors.
The services offered by FMC Group make employee leasing extremely simple and help businesses expand their activity into Romania in no time and at greatly reduced costs. Our services do not end at the hiring process, but they extend to the day-to-day administrative management of employees, while clients can focus entirely on the functional tasks of their employees and the implementation of their growth strategy. This allows businesses expanding into Romania to achieve great results in short periods of time.
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- Advantages of Employee Leasing in Romania
- Employee Leasing Services Offered by FMC Group
- Advantages of the Romanian Market
- Recruitment in Romania
- Minimum Wage and Payroll
- Social Contributions and Taxes
- Working Hours and Overtime
- Vacation Days
- Parental Leave and Sick Leave
- Notice Period
Advantages of Employee Leasing in Romania
- Employee leasing in Romania gives clients access to a large local talent pool of skilled professionals trained in various sectors and industries.
- Expanding business activity in Romania opens up opportunities in the large consumer markets of Southeast Europe, Central and Eastern Europe, and the entire EU.
- Hiring workers in Romania through employee leasing allows companies to benefit from all the advantages provided by the EU business environment at a significantly reduced cost compared to Western European countries.
- Employee leasing saves time for clients and allows them to concentrate on business decisions without worrying about the administrative and legal management of employees.
Employee Leasing Services Offered by FMC Group
- We select the best candidates for your company;
- We negotiate contracts that guarantee your best interests;
- We manage your payroll in accordance with international standards;
- We pay social contributions and taxes in accordance with Romanian laws;
- We monitor your employees’ paid vacations and other benefits;
- We negotiate private health insurance for your employees if requested;
- We maintain regular contact with you regarding the management of your employees.
Management and Reporting Flow of Employee Leasing Services
Advantages of the Romanian Market
- Romania has a strategic location at the crossroads of three pan-European transport corridors: Corridor IV running from Germany to Turkey through six other countries, Corridor VII running from Germany to Romania through five other countries, and Corridor IX running from Finland to Greece through seven other countries. Romania also has the largest and deepest port on the Black Sea, located in the city of Constanta, which contributes to significantly reducing the time for maritime cargo transit between Europe and Asia.
- As the second-largest country in Central and Eastern Europe, Romania represents an incredible market opportunity. The country is the sixth-largest in the EU in terms of population, with a domestic consumer market of nearly 20 million individuals. The country also gives access to the entire EU market with its 440 million consumers.
- Romania offers remarkable infrastructures for companies wishing to expand their activity over there. The country counts more than 90 industrial parks spread across its entire territory, with the majority of them built around the sectors of aerospace and ICT. Internet infrastructure in Romania is also among the most developed in Central and Eastern Europe, boasting an average fixed broadband speed of more than 200 Mbps.
- Romania enjoys a highly competitive macroeconomic environment, marked by GDP growth rates well over 4.0% for the past five years (except in 2020 due to the COVID-19 pandemic). The country also maintains a relatively low inflation rate, estimated at around 2.5%, despite the global supply challenges.
Recruitment in Romania
Minimum Wage and Payroll
- The national minimum wage in Romania is set at RON 2,550 (EUR 515) gross per month.
- Employers in Romania have the obligation to increase the salary of their minimum wage workers after 24 months of work.
- Salaries in Romania are paid on a monthly basis, usually on the last working day of the month.
Social Contributions and Taxes
|Employee Income Tax|
Working Hours and Overtime
- The legal working limit for full-time employees in Romania is set to 40 hours per week.
- Part-time workers have to work at least 10 hours per week, two hours per day.
- Overtime work is allowed but it cannot exceed eight hours per week or four hours in one day.
- Overtime work is compensated with paid time off in the 60 days following it. If compensation with time off is not possible, it has to be remunerated at a rate of at least 175% of the regular pay.
- Employees in Romania are entitled to 20 days of annual paid leave.
- The annual paid leave can be taken up until the end of June of the following year.
- Romania celebrates 12 public holidays:
- New Year’s Holiday: January 1st – 2nd;
- Unification Day: January 24th;
- Good Friday and Easter Monday: Between April and May;
- Labor Day: May 1st;
- Pentecost: Seven weeks after Easter;
- Children’s Day: June 1st;
- Assumption Day: August 15th;
- Saint Andrew: November 30th;
- National Day: December 1st;
- Christmas Holiday: December 25th – 26th.
Parental Leave and Sick Leave
- Pregnant employees are entitled to 126 days of paid maternity leave, including 63 days of prenatal leave and 63 days after birth. Social Security covers the employee’s pay during maternity leave at a rate of 85% of the regular salary.
- New fathers can take five to 10 days of paid leave after their child’s birth. The leave duration can increase to 15 days if the employee participates in an infant care course.
- After the end of maternity and paternity leaves, one of the parents can take a paid parental leave until the child is two years old. The employee receives 85% of their regular salary during this period.
- Employees can take up to 180 days of paid sick leave per year, with the possibility of a 90-day extension. The first five days of the leave are covered by the employer, while the remaining duration is covered by Social Security. Pay during sick leave varies from 75% to 100% of the regular salary, depending on the type of illness.
- Employees have the right to three days of paid leave when one of their direct family members passes away.
- The notice period in Romania for employees wishing to leave their jobs is 20 business days for non-management positions and 45 business days for management roles.
Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.