Romania is a growing economy in the EU with strong GDP growth and some of the lowest tax rates in the EU. The population is just over 19 million people, with strong electric machinery, agriculture, and mining industries. Maintaining compliance with local laws and regulations, and managing the language barrier can be challenging.
The corporate tax rate is 16%, but rates can be much lower depending on the size of the company. Labor and payroll considerations in Romania include:
- Employment contracts must be in writing
- Minimum wage is RON 2,080 per month
- Collective Bargaining Agreements are required at the unit-level, with trade unions required to have at least 15 employees
- Companies with less than 21 employees are not required to unionize
- Payroll taxes are withheld from employee pay
- New employees must be registered with the Labor Chamber one day before beginning work
- Non-EU/EEA foreign workers must have a work permit and long stay visa in order to live and work in Romania
- Employers must apply for a work permit for prospective foreign employees, and must prove that Romanian citizens, permanent residents, and EU/EEA citizens cannot fill the position.
- In accordance with the labor laws in Romania, in case of illness an employer must pay sick leave days, typically the working days from the first five calendar days of illness, depending on the illness category, the difference being paid by the National Sole Social Insurance Fund (FNUASS). The payment rates are between 75-100% of the employee base salary
Blue Marble has created easy-to-use technology with customized reporting to manage your employees across the globe. Our in-country experts can help you navigate the business customs and language barriers in Romania, and our cloud-based technology on one platform gives you real-time access across all countries and currencies. Simplify your business operations in Romania and ensure compliance with Blue Marble Payroll. To learn more, click here