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UPDATED AUG 13, 2026💡 Everything you need to know to hire and manage employees in Romania through Toku. Toku handles payroll processing, tax withholding, social contributions, and statutory compliance. This guide covers what you need to plan costs and manage your team.
At a Glance
| Item | Detail |
|---|---|
| Currency | Romanian leu (RON) |
| Payroll cycle | Monthly. Toku runs one payroll per month in Romania. |
| Estimated employer costs on top of salary | Approximately 2.25% for the employer work insurance contribution, plus any applicable benefits and allowances |
| Onboarding lead time | 3-4 weeks |
| Standard working week | 40 hours (8 hours per day, 5 days per week) |
| Probation period | Up to 90 calendar days for executive roles; up to 120 calendar days for management roles |
| Annual leave | 20 working days statutory minimum |
| 13th month salary | Not required |
| Minimum notice on termination | 20 working days for employer-initiated dismissal after probation; up to 45 working days for resignation, depending on role |
Onboarding a New Hire
Plan for 3-4 weeks between submitting a new hire and their start date. Before day one, the employee signs a local employment agreement and provides the personal, tax, and payroll details needed for registration.
Submit your new hire through the Toku platform and we take it from there: local employment agreement, registration in Romania's employee registry, and payroll setup. See Onboard Contributors as a Client Admin in Toku for the step-by-step process.
Employer Costs
On top of each employee's gross salary, you pay the following employer contribution:
| Cost | Rate | Notes |
|---|---|---|
| Work insurance contribution (CAM) | 2.25% | Employer contribution calculated on gross salary |
| Total statutory employer contribution | Approximately 2.25% | Excludes any optional benefits, allowances, or company-specific costs |
As a rule of thumb, total statutory cost of employment is roughly 102.25% of gross salary, before benefits or any agreed allowances.
Employees pay the main Romanian payroll deductions from gross salary: pension contribution, health insurance contribution, and income tax. These are withheld from gross salary, not added on top of your costs. Toku calculates and remits the required payroll taxes and contributions.
Compensation & Payroll
Toku runs one payroll per month in Romania, and employees receive a payslip each cycle showing gross pay, deductions, and net pay. Salary is typically paid by bank transfer in Romanian lei (RON).
Romania has a statutory minimum wage, which is updated by government decision from time to time. Toku checks minimum wage compliance during hiring and payroll setup. There is no statutory 13th month salary, and bonuses are only required where agreed in the employment contract, internal policy, or an applicable collective bargaining agreement.
Employment Contracts & Probation
- Toku issues a compliant local employment agreement for every hire. Romanian employment contracts must generally be in writing, in Romanian, signed before work starts, and registered in the employee registry.
- Indefinite-term contracts are the default. Fixed-term contracts may be used only where Romanian law permits and must include the required fixed-term conditions.
- Probation can be set up to 90 calendar days for executive roles and up to 120 calendar days for management roles. During or at the end of probation, either party may terminate by written notice without giving reasons and without a notice period.
- For telework or remote work arrangements, the employment agreement must include the required telework terms, including the place of work, working schedule, equipment, occupational health and safety requirements, and how the employer may verify work activity.
Working Hours
The standard working schedule is 8 hours per day and 40 hours per week. Weekly rest is generally granted on Saturday and Sunday, unless a different arrangement is legally permitted and documented.
Overtime is generally only permitted with the employee's agreement, except in limited emergency situations. Overtime should normally be compensated with paid time off within the legal period. If paid time off is not possible, overtime must be paid with the applicable salary premium. Work performed on public holidays or weekly rest days must also be compensated according to Romanian law and any applicable collective bargaining agreement or internal policy.
Leave Entitlements
| Leave | Entitlement | Who pays |
|---|---|---|
| Annual leave | 20 working days statutory minimum, at full pay | Employer |
| Sick leave | Medical leave based on a medical certificate; employer generally covers the initial employer-paid period, with social insurance reimbursement rules applying afterward | Employer and social insurance, depending on leave type and duration |
| Maternity leave | 126 calendar days in total, typically split before and after birth | Social insurance, administered through payroll |
| Paternity leave | 10 working days, with an additional 5 working days available if the parent completes an infant care course | Employer/social insurance rules may apply depending on setup |
| Parental leave | Available until the child reaches age 2, or age 3 for a child with disabilities, with a state-funded allowance subject to statutory limits | Government |
| Caregiver / family care leave | Available in specific family and medical situations, subject to statutory conditions | Depends on leave type |
| Special leave | May apply for events such as marriage, childbirth, or bereavement if provided by law, collective agreement, contract, or internal policy | Employer, where paid leave applies |
Leave rules in Romania are detailed and depend on the type of leave and supporting documentation. Toku will confirm the correct handling for each leave request before payroll is processed.
Public Holidays (2026)
Romania observes the following national public holidays in 2026. If a public holiday falls on a weekend, there is generally no automatic substitute day unless the government announces an additional non-working day.
| Date | Holiday |
|---|---|
| January 1 | New Year's Day |
| January 2 | Day after New Year's Day |
| January 6 | Epiphany |
| January 7 | Synaxis of St. John the Baptist |
| January 24 | Unification Day |
| April 10 | Good Friday |
| April 12 | Orthodox Easter Sunday |
| April 13 | Orthodox Easter Monday |
| May 1 | Labour Day |
| May 31 | Orthodox Pentecost |
| June 1 | Children's Day / Orthodox Pentecost Monday |
| August 15 | St. Mary's Day |
| November 30 | Saint Andrew's Day |
| December 1 | National Day |
| December 25 | Christmas Day |
| December 26 | Second Day of Christmas |
Required Benefits
Statutory (included through payroll and employer compliance): Romania's statutory system covers public pension, health insurance, income tax withholding, unemployment and work insurance coverage, and statutory leave entitlements. The employer's main statutory payroll cost is the work insurance contribution.
Ending Employment
Romanian law requires a documented and locally compliant termination process, so involve Toku early, before any termination conversation happens. For the process, see How to Terminate an Employee or Contractor. Please make sure Toku has no less than 2 weeks notice for terminations in Romania.
| Situation | Notice |
|---|---|
| During probation | No notice period required; written notification is required |
| Employer-initiated dismissal after probation | At least 20 working days |
| Employee resignation - non-management role | Up to 20 working days, depending on the contract |
| Employee resignation - management role | Up to 45 working days, depending on the contract |
Dismissals must follow the correct legal basis and procedure. Depending on the reason, this can include prior investigation, performance documentation, consultation steps, or redundancy process requirements. Severance is not generally required by statute, but it may be provided by contract, collective agreement, internal policy, or a negotiated settlement.
Hiring Someone from Overseas?
EU, EEA, and Swiss nationals can generally work in Romania without a work permit, though local registration or immigration formalities may still apply depending on the length and nature of stay. Other nationals usually need Romanian work authorization and a residence permit before starting work. Processing timelines can vary, so talk to Toku ([email protected]) before extending an offer to a candidate who needs sponsorship.
Need help? Email [email protected] for more support.