Employer of Record in Romania: A Complete Guide for 2026

Introduction

Hiring in Romania means your business needs an entity. That means a local office, a registered subsidiary address, and a Romanian bank account.

All of this takes three to six months, and RON 78690 to 131150 before a single salary goes out. Even when you have set up the entity, the work doesn't stop there.

You're filing with ANAF by the 25th of every month, registering contracts in REGES-Online within 15 days, and tracking misclassification rules.

An Employer of Record in Romania (EOR) bridges that gap. An EOR is a licensed Romanian entity that legally employs your hire on your behalf, so you can put someone on payroll in days instead of months.

The EOR handles the REGES (General Register of Employees) Online registration, the ANAF (National Agency for Fiscal Administration) filings, the labor insurance, the leave rules, and the termination paperwork. You manage the work that matters most, and they manage the paperwork.

This guide walks through how it works, what it costs, and where it fits.

Romania at a glance

Population: 18.81 million

Currency: Romanian Leu (RON, lei)

Capital city: Bucharest

Languages spoken: Romanian, Hungarian, German

GDP: 2.17 trillion lei (RON)

Employment in Romania

Employment law is derived from the Romanian Constitution, primary and secondary Romanian legislation, as well as European and international legal requirements relevant to this sector (e.g., International Labor Organization, Council of Europe, EU legal instruments).

The primary pieces of domestic law dealing with work relations are the Romanian Labor Code (Law no. 53/2003, henceforth the ‘Labor Code’) and the Romanian Law on Social Dialogue (Law no. 62/2011, henceforth the ‘Social Dialogue Law’).

The Labor Code applies to employment relations governed by special legislation.

In addition, the Labor Code's requirements are supplemented by other employment laws as well as civil laws.

Discover how RemoteLock, a software development firm, hired tech talents across Europe with Skaud.

Contractors vs. full-time employees

In Romania, there are some hidden advantages to recruiting and paying foreign employees instead of independent contractors.

It is 30% less expensive to hire and pay international talent through a global PEO solution than hiring and paying in-house. When compared to working and paying via your own organization, you can save up to 50%.

Employee loyalty increases by 47% when they are employed, which is why you can retain the best knowledge workers for a long time. 95% of legal, financial, and economic concerns are eliminated with official foreign hiring.

You may also gain flexibility by employing this service and taking on additional jobs of varying durations.

In Romania, you may start a bare-bones company with just one or a handful of people and quickly scale up as your business grows.

Official PEO employment of a foreign individual in Romania, when combined with 100% compliance, ensures that there are no commercial risks because the client base and intellectual property are safe.

It also ensures better on-site customer service and a thorough understanding of the local company culture. This means less time and money spent on recruiting, evaluating, and onboarding geographically dispersed teams of experts, as well as a learning curve.

Romania's labor authorities apply substance-over-form tests to working relationships, so classifying someone as a contractor when they work set hours under your direction can expose you to back taxes and fines of around RON 26,230 per worker.

Skuad supports both hiring models from a single platform:

EOR for full-time employees

• Acts as the legal employer across 160+ countries, so you can hire without setting up a local entity
• Supports employment contract generation aligned with local labor laws across supported markets
• Facilitates statutory contribution workflows covering applicable social insurance and pension obligations
• Supports payroll processing in 70+ currencies with automated tax withholding and year-end reconciliation
• Helps administer statutory benefits, paid leave, and parental entitlements in line with local requirements

Contractor management

• Helps onboard contractors with locally compliant agreements that reduce misclassification exposure
• Supports invoice generation, approval workflows, and payment processing
• Helps flag classification risk early with built-in worker classification checks
• Facilitates multi-currency payouts across 70+ currencies with no manual reconciliation
• Helps manage contractor records, contracts, and payment history from one dashboard alongside full-time staff

Whether you hire a full-time employee or a contractor, Skuad supports both. See pricing.

Hiring in Romania

Here are the steps involved in hiring employees in Romania.

Background checks

Employers must verify application information by adhering to the fundamental principles governing the processing of personal data and the legality of the data processing, as well as meeting one of the requirements outlined in Regulation (EU) 2016/679, Article 6 (Lawfulness of Processing). The employer must also make sure that the processing is done in compliance with Regulation (EU) 2016/679.

Medical checks

According to national legislative regulations, an individual can only be hired if they have a medical certificate declaring that they are physically fit to work. 

The legislation forbids the use of pregnancy tests. In this case, the medical certificate given by the occupational health physician must not include information on the status of pregnancy since this might be a barrier to employment.

Testing for drugs and alcohol is not needed, although it is not forbidden. As a result, such tests may be conducted, but only with the permission of the employee.

Hiring process

The legislation requires a written version of the individual employment agreement (IEA). Furthermore, the employer must follow the IEA standard, as approved by the Ministry of Labor and Social Justice, as well as the Romanian law's minimum rights (e.g., national minimum gross salary, minimum rest leave, maximum probation period, minimum notice period in case of dismissal).

In addition to the basic elements, an IEA with a teleworking element must have some necessary conditions.

Under the Labor Code, the period of a fixed-term contract is usually limited. As a result, the (initial) fixed-term contract may be completed for a maximum of 36 months and may only be renewed twice, each time for a maximum of 12 months (i.e., the maximum permissible term of fixed-term employment is 60 months). 

A company can also enter into a maximum of three fixed-term contracts in a row. Learn more at Skuad.

Websites for hiring in Romania

• Bestjobs
• Ejobs
• Carieranoua
• Hipo

As a business looking to expand into the Romanian market, not being well-versed with the employment laws and compliance of the country could pose several challenges and could cost you crucial time during the process. 

Book a demo today to see how you can onboard, pay, and manage all your Romanian employees while maintaining compliance with the local laws. 

Probation and termination

In the employment contract, the employer can include a probationary term of up to 30 days for operational roles and up to 90 days for management jobs. Employers must offer at least 20 working days' notice in the case of termination. 

This does not apply to dismissing a probationary employee, dismissing a worker for professional inadequacies, or dismissing a worker for disciplinary reasons.

Romania does not allow at-will employment. Dismissals need just cause, strict notice, and a termination that misses a step can lead to reinstatement and back pay. Getting notice periods, documentation, and final settlements right matters as much as the hiring paperwork.

Skuad can help you navigate through local EOR infrastructure, so your team doesn't need to interpret the Labor Code or manage termination filings independently.

Employees must provide 20 days' notice for non-managerial jobs and 45 days' notice for managerial ones when resigning. 

In Romania, there is no legal requirement to make severance compensation. 

If the employee meets the following criteria, he or she may be subjected to another probationary period with the same company and under the same conditions:

• When it is a new job (held for the first time in the relevant organization)
• A new profession
• When the task is to be conducted under difficult, hazardous, or dangerous working conditions.
  

EOR solution

Registering your Romanian entity typically takes time and huge capital investment, even before a single employee is onboarded, and commits your legal and finance teams to ongoing payroll, accounting, and filing work.

Skuad helps remove that dependency. Skuad acts as the legal employer in Romania, so your company can hire, onboard, and pay employees without entity setup or in-house Romanian payroll infrastructure.

Skuad can also advise you on the cultural norms and recruiting best practices, and keep you up to date on changing employment rules.

Book a demo to see how Skuad gets your first Romania hire onboarded in weeks, not months 

Work permits and visas

A person who does not have Romanian, EU/EEA, or Swiss Confederation citizenship is referred to as a ‘non-EU national.’ 

In general, a non-EU citizen may only work in Romania as a local employee or as a seconded employee, provided a work authorization for employment or secondment has been secured in advance. 

The relevant Romanian immigration authorities provide any work authorization based on an official request by a Romanian firm, either as an employer or as a service recipient.

Permanent workers, highly qualified employees, temp workers, trainee workers, cross-border workers, and au pair workers are eligible for work authorization.

Secondees undertaking activities in Romania are awarded a work authorization for secondment based on a service agreement between their employer and the Romanian recipient of their services or under an intra-corporate transfer (ICT).

Non-EU nationals with a right to reside in Romania as family members of Romanian citizens or non-EU nationals employed in Romania may perform work activities without obtaining work authorization for employment/secondment in exceptional circumstances and subject to the fulfillment of certain specific conditions, such as non-EU nationals with a right to reside in Romania as family members of Romanian citizens or non-EU nationals employed in Romania. 

The following are some of the precise requirements that must be met for the most typical work authorizations. 

Permanent workers' work authorization

The following are some of the most important unique requirements for acquiring such work authorization:

• The Romanian employer plans to sign a full-time work contract with a fixed or undetermined duration.
• No Romanian, EU/EEA/Swiss citizen, or non-EU national holder of a Romanian permanent resident permit is available to fill the vacant post, according to the Romanian employer.
• The candidate meets all of the requirements set out by current laws for filling the vacant post, including but not limited to the educational requirement.

Hiring a non-EU national in Romania means securing work authorization in advance through the General Inspectorate for Immigration, after which the employee applies for a long-stay visa within 60 days and a residence card within 90 days of arrival. 

Tracking that sequence across authorities and deadlines adds real lead time to any international hire.

Skuad supports the work permit process on your behalf, including:

• Supporting work permit applications for foreign employees joining your team
• Helping coordinate visa documentation with relevant local immigration authorities
• Assisting with residence or work permit conversions as required by local immigration law
• Helping track documentation requirements and deadlines across the full permit lifecycle
• Helping keep your team aligned as renewal and regulatory requirements change

Use Skuad's immigration services to navigate visa complexities so your team members can easily move for business. 

Payroll and taxes

Companies can set up their Romanian payroll in one of three ways. 

• Internal: Larger enterprises with a commitment to Romania may manage their payroll through a subsidiary by hiring additional personnel to manage HR and payroll. This is the most costly and time-consuming alternative.

• Remote: You can add your Romanian workers to an existing internal payroll if you manage payroll at your parent firm. However, keep in mind that the two groups' employment compliance laws will differ.
• Payroll processing firm in Romania: You may also outsource your payroll processing to a Romanian firm. Any errors will still be held against you.

The monthly payroll must be printed, stamped, and preserved, and must include the computation of all employer and employee payments and income tax. 

The deadline for paying all salary-related taxes is the 25th of the following month. By the 25th of the next month, the competent authorities must receive a declaration of taxes to the consolidated state.

An informative statement on the income from wages and remuneration of administrators earned in Romania in the previous year by residents of other EU countries must be filed with the tax authorities by the 28th of February of each year.

Taxes

Individuals in Romania are taxed 10% of their salary, according to the Romanian Tax Code. For salaries up to 1,950 Ron, the personal deduction is 510 Ron. For taxpayers earning between 1,951 and 3,600 Ron a month, the personal deduction is progressive. 

Personal deductions are reduced as a consequence of a rise in compensation. If the employee has dependents, he or she may be eligible for further deductions. 

For monthly gross salaries over 3,600 Ron, no personal deduction is allowed.

Employer taxation

Employee taxation

Romanian payroll stacks several obligations on top of gross pay: 10% income tax, 25% employee social security, 10% health fund, and a 2.25% employer labor insurance contribution, all due by the 25th of the following month. 

Modeling the true cost of a hire before you make an offer is harder than it looks.

Skuad helps you see the full picture before committing. The employee cost calculator estimates gross-to-net pay and total employer cost so you can budget accurately.

Estimate your true cost of hiring in Romania with Skuad’s Employee Cost Calculator. 

Incorporation: How to set up a subsidiary in Romania

If you decide to open a Romanian subsidiary on your own, you must evaluate several aspects that may influence your decision. It is crucial to investigate any current business contacts as well as the industry you intend to enter. These factors may determine where you establish your Romanian headquarters.

When you form a company, you must first determine which language is most generally spoken in the region and then hire staff or translators fluent in that language.

Various laws may apply to different areas or cities within a country. It is advisable to set up your Romanian subsidiary in a place with minimal formation expenses and a welcoming attitude towards international companies. You may find the perfect location for your headquarters with the aid of an adviser or other local company experts.

A limited liability corporation (LLC) is one of the most common subsidiary structures. The following are the steps to creating an SRL:

• Obtain a minimum share capital of 40 EUR.
• Obtain a certificate from the parent firm stating that it is in good standing.
• The parent company's complete Memorandum and Articles of Association.
• Solve the parent company's choice to open a subsidiary in Romania. Register a physical office.
• Assign a signatory for the subsidiary to an administrator.
• To formally register, submit paperwork to the Trade Register.

Subsidiary rules in Romania vary depending on the sort of company you form. You'll need at least one shareholder and a director who does not have to live in Romania or the European Union to form an SRL (EU).

Limited liability companies must file financial accounts and tax filings with the Romanian tax office every year. If your subsidiary has more than 15 shareholders or meets the following criteria, an audit is required:

• Annual turnover of over RON 38.29 million 
• Assets worth over RON 18.88 million 
• Workforce with more than 50 workers.

The first big stumbling block to conducting business in Romania is establishing a subsidiary. You'll be able to legally run your subsidiary in the country once you've incorporated.

After that, you may hire staff, set up payroll, and create a salary and benefits plan that is appropriate for your company.

Both the subsidiary and the parent company benefit from having an SRL. The parent firm does not have to worry about any losses or lawsuits against the subsidiary because there is little responsibility between them. 

On the other hand, the subsidiary is free to function under its own structure to conform to Romania's general culture. 

If you want to establish a Romanian subsidiary on your own, you'll need a thorough grasp of the country's subsidiary legislation. In addition, you'll need to budget for some stages of the procedure and be prepared to bear these expenses. 

Also, bear in mind that you will have to go to Romania regularly, which will take you away from other firm responsibilities.

PEO

A Professional Employer Organization (PEO) is the organization's co-employer and is used to hire the whole workforce. It shares an organization's HR obligations and liabilities and takes over all HR-related tasks. 

It works for a company with a minimum of 5-10 workers and is registered in each nation or state where its workers are located.

The Employer of Record acts as a legal employer by taking on a portion of the organization's obligations. EOR can be utilized for a segment of the workforce and can take over only a portion of the HR tasks. It enables businesses to relocate to another state or nation without having to form a formal company. Worker's compensation and unemployment claims are handled through the Employment of Record company.

For organizations operating across several locations, employment rules and regulations get increasingly complicated and diversified as the business develops throughout many locations.

If a corporation partners with a PEO, it must create a legal presence in each state or nation where it employs people. However, if the firm's EOR is created across geographies, the EOR allows the corporation to employ individuals in those states lawfully. 

Employer of Record in Romania: Hire without an entity

We understand that entering any overseas market can be a lengthy and tedious process. And that's where the right EOR partner makes the difference. 

Skuad supports the operational complexity of hiring in Romania, for example, employment contracts, REVISAL registration, payroll in 70+ currencies, statutory benefits, work permits, and compliance monitoring.

Companies across SaaS, technology, engineering, and professional services use Skuad to support their entry into the Romanian market, stay aligned with regulations as they change, and scale their team without building local HR infrastructure.

Book a demo with our team today to see how Skuad gets your first Romania hire onboarded in weeks.

FAQs

What is an employer of record in Romania?

An Employer of Record (EOR) in Romania is a licensed local entity that legally employs staff on your behalf, registering contracts in the REGES-Online labor register and running payroll, tax, and social security under the Romanian Labor Code (Law no. 53/2003).‍

How much does an employer of record in Romania cost? 

EOR pricing in Romania typically runs from around USD 99 to USD 600 per employee per month, depending on the provider and service scope. On top of the platform fee, budget for the employer's statutory costs, including the 2.25% labor insurance contribution and the 16% corporate tax that applies to Romanian operations.

Can a foreign company hire in Romania without a local entity? 

Foreign companies can hire in Romania without opening a local entity by using an EOR. The EOR signs the individual employment agreement, registers it in REVISAL within the statutory window, and handles tax and social security filings with Romanian authorities.

What is the biggest compliance risk when hiring in Romania? 

Misclassifying an employee as a contractor is the biggest risk. If a contractor works set hours under your direction, they are likely an employee. Penalties can start around EUR 5,000 per misclassified worker, plus back taxes and unpaid social contributions. 

Is an EOR or setting up an entity better in Romania? 

An EOR lets you start hiring in roughly two to four weeks, while registering your own Romanian entity usually takes three to six months and EUR 15,000 to 25,000 upfront, plus ongoing accounting and payroll costs. Entity setup makes sense for large, long-term teams; an EOR fits companies hiring a handful of people quickly.

How quickly can an EOR onboard an employee in Romania? 

Onboarding is fast for EU nationals, often within one to two weeks. Non-EU hires take longer because a work authorization must be secured through the General Inspectorate for Immigration (IGI) before employment can begin.