TL;DR, Hiring in Romania
- Fully-loaded employer cost: ~2.25% on top of gross (post-2018 tax shift)
- Most social contributions are now employee-side (CAS 25%, CASS 10%)
- Only labour insurance (CAM 2.25%) remains employer-side
- IT employees historically had income tax exemption, phased out in 2024
Last reviewed:
Statutory employer costs in Romania
Romania shifted nearly all payroll taxes to the employee side in 2018. Today, the employer pays only the 2.25% Labour Insurance Contribution (CAM). The employee pays 25% CAS (pension), 10% CASS (health), and 10% income tax. This makes the employer's stated cost in Romania deceptively low, the gross salary itself absorbs the burden, so candidates negotiate based on net.
| Contribution | Employer rate | Notes |
|---|---|---|
| Labour Insurance (CAM) | 2.25% | Covers unemployment, work accidents, guarantee fund |
Mandatory employee benefits
Beyond statutory contributions, Romania law requires the following benefits the employer must fund.
- Annual leave
- 20 working days minimum; collective agreements often add 1–5 more.
- Meal vouchers
- Common; up to RON 40/day tax-advantaged in 2024.
- Private health insurance
- Not mandatory but standard for mid-senior roles.
Termination, notice and severance
Probation
30 days (workers) to 90 days (managers/specialists); 120 days for management.
Notice period
20 working days minimum, regardless of tenure.
Severance
Not statutory; defined by collective agreement or contract.
Common compliance pitfalls
- Quote in net rather than gross, Romanian candidates think in net and the employee-side burden is heavy.
- IT income tax exemption (phased out for new entrants from Nov 2023) materially changed offer competitiveness.
- Permanent contracts (CIM pe perioadă nedeterminată) are the default; fixed-term is restricted to 36 months/3 renewals.
Frequently asked questions
Romania moved nearly all payroll taxes to the employee side in 2018. The employer only pays 2.25% CAM. But the employee then loses ~35% of gross to CAS, CASS, and income tax, so the gross has to be set higher to deliver a competitive net.
Partially. The 10% income tax exemption for IT roles is being phased out, with new entrants no longer eligible from late 2023 / 2024. Confirm eligibility per hire.
Net of taxes, mid-level engineers in Bucharest/Cluj typically target EUR 2,500–4,500 net/month. Gross-to-net is roughly 1.65×.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.