Hiring in Romania: Costs, Contracts and EOR

To hire in Romania, a foreign company either employs the person through a Romanian entity or an employer of record, or contracts with them as an independent business. Employment is cheap on the employer's side and expensive on the employee's: the employer pays only 2.25% on top of gross salary (the work insurance contribution, CAM), while the employee pays 25% pension, 10% health and 10% income tax out of it. On a gross salary of RON 15,000 a month, the employer's total cost is RON 15,337.50 and the employee takes home RON 8,775. An employer of record starts at about $599 a month at the large providers. Contracting is legal, but only where the work meets at least four of the seven tests for an independent activity in the Romanian Fiscal Code.

Below are the contribution rates with the official and professional sources behind them, a worked salary example, the contracting test, notice and leave rules, time zone overlap and what catches foreign employers out. This is the same seven-part structure as our Poland, Germany, Spain, Portugal and UK guides.

Key takeaways

• Employer contribution on a normal office job: 2.25% (CAM). Employee contributions: 25% pension (CAS) and 10% health (CASS), then 10% flat income tax.
• Because almost everything sits on the employee side, compare offers on net pay, not on employer cost. RON 15,000 gross is about RON 8,775 net.
• Minimum gross wage: RON 4,050 a month until 30 June 2026, RON 4,325 from 1 July 2026 (Government Decision 146/2026).
• Hourly labor cost in Romania was €13.6 in 2025, the second lowest in the EU after Bulgaria, against an EU average of €34.9 (Eurostat).
• Contractors invoice through a PFA (authorized individual) or a company. The relationship is independent only if it meets at least 4 of 7 criteria in art. 7 of the Fiscal Code.

What does it cost to employ someone in Romania?

Romania puts almost all social contributions on the employee, withheld from gross salary by the employer. The rates in force in 2026, as summarized in PwC's Romania tax summary (reviewed 25 September 2026):

The employer withholds the employee's share and files it monthly on the D112 declaration, due by the 25th of the month after payment, according to Boundless's 2026 Romania payroll guide.

A worked example on RON 15,000 a month

The example assumes a normal office role, no personal deduction (which phases out well below this salary) and no meal vouchers or other benefits. Its point is the ratio: the employee keeps about 58.5% of gross, so if a candidate asks for RON 9,000 a month net, the gross you budget is over RON 15,000. Confirm the exact figures for the individual hire with a Romanian payroll provider.

The minimum wage in 2026

The gross minimum wage is RON 4,050 a month from 1 January to 30 June 2026 and RON 4,325 from 1 July 2026, set by Government Decision 146/2026, as reported by L&E Global. It matters less for professional hires than as a reference point: contractor contribution bases are set in multiples of it.

For a cross-country view, Eurostat puts Romania's average hourly labor cost (wages plus employer costs) at €13.6 in 2025, against €19.1 in Poland, €19.4 in Portugal, €45.0 in Germany and an EU average of €34.9. The salary calculator puts a US employee next to a European contractor for the same role.

Is contracting legitimate in Romania?

Yes, when the relationship is genuinely independent. Romanian professionals who invoice foreign clients usually do it through a PFA (persoană fizică autorizată, an authorized individual) or through their own company. Romania's tax authority classifies an activity as independent only if it meets at least four of the seven criteria in art. 7 point 3 of the Fiscal Code, listed in ANAF's guidance on independent activities:

1. Freedom to choose where and how the work is done, and the working hours.
2. Freedom to work for several clients.
3. The risks of the activity are carried by the person doing it.
4. The work is done using the person's own assets.
5. The work is done through the person's own intellectual and/or physical effort.
6. Membership of a professional body that represents, regulates and supervises the profession.
7. Freedom to do the work directly, with employees, or with subcontractors.

A senior specialist who sets their own schedule, serves several clients and uses their own equipment usually meets four. A full-time team member who works your hours, attends your daily standup, uses your laptop and serves only you is harder to defend. If the tax authority reclassifies the income as dependent, it is taxed as salary, with the contributions that go with it.

The contractor carries their own contributions. For 2026, a PFA pays 25% CAS on a base of 12 minimum wages (RON 48,600) if annual income is between 12 and 24 minimum wages, or 24 minimum wages (RON 97,200) if it is higher, and 10% CASS on net income capped at 72 minimum wages (RON 291,600), per PwC. That is the contractor's cost, not yours, but it explains why Romanian contractors quote rates that look high next to local net salaries. The contractor or employer of record guide covers the choice in more depth.

Notice, probation and leave

Sources: Boundless on termination and notice in Romania and Gruia Dufaut on paid leave. Dismissal in Romania must rest on a ground the Labor Code allows; there is no at-will termination.

How much time zone overlap do you get?

Romania is on Eastern European Time: one hour ahead of Berlin, two hours ahead of London and seven hours ahead of New York. With both sides working 9:00 to 17:00, a Bucharest employee overlaps with New York for one hour (16:00 to 17:00 local, 9:00 to 10:00 Eastern) and with London for six. If your team is on the US East Coast, agree a later working window in writing before the offer; the US hours table shows the conversion for every European zone.

Which roles is Romania strong for?

Romania's English is strong: the EF English Proficiency Index 2025 ranks Romania 11th worldwide with a score of 605, ahead of Poland and Spain, per the EF EPI table. On our board, between 15 August and 15 October 2026, 15 of 1,452 sales and business development roles and 7 of 634 marketing roles named Romania explicitly. Many more roles were advertised for "Europe" or "EMEA" without naming a country (138 sales and 118 marketing roles in the same period), which includes Romania, so the explicit count understates real demand. For where Romania sits against other countries on the same criteria, see the country-by-country hiring guide.

What catches international employers out?

• Quoting gross like a Western European. With about 41.5% of gross going to employee contributions and income tax, a gross figure that looks generous next to the minimum wage can be a weak net offer. Ask the candidate for net, then convert.
• Using a PFA for a full-time embedded role. If the person works only for you, on your schedule, with your equipment, the art. 7 test is hard to pass. Use an employer of record or your own entity.
• Registering the contract late. Employment contracts are registered in REGES-Online, which became the only employee register on 1 January 2026; new hires must be registered the day before they start, per Boundless. An employer of record handles this; a direct employer must.
• Forgetting the working window. One hour of overlap with New York is not enough for a role that needs live meetings. Settle the hours before the offer, not after.

The seven mistakes US founders make on a first European hire covers the traps that apply in every country.

FAQ

How much does it cost to hire an employee in Romania?

The employer pays gross salary plus 2.25% work insurance contribution (CAM). On RON 15,000 gross a month, that is RON 15,337.50. An employer of record adds about $599 a month at the large providers if you have no Romanian entity.

What are employer contributions in Romania in 2026?

For a normal office role, 2.25% CAM. The employee pays 25% pension (CAS), 10% health (CASS) and 10% income tax, which the employer withholds. Extra employer CAS of 4% or 8% applies only to classified special working conditions.

Can a US company hire a contractor in Romania?

Yes. Romanian professionals often invoice through a PFA or a company. The relationship must be genuinely independent: at least four of the seven art. 7 criteria in the Fiscal Code, such as choosing their own hours, serving several clients and carrying their own business risk.

What is the minimum wage in Romania in 2026?

RON 4,050 gross a month until 30 June 2026 and RON 4,325 from 1 July 2026, under Government Decision 146/2026.

Can you hire developers in Romania the same way?

Yes. The same routes apply to developers as to any other role: employ through a Romanian entity or an employer of record, or contract with a developer who invoices as an independent business and meets at least four of the seven art. 7 criteria. Romania's English ranks 11th worldwide in the EF index, which helps on English-speaking engineering teams, and the country-by-country hiring guide linked above compares it with other countries.

Do I need an employer of record to employ someone in Romania?

If you have no Romanian entity and want to employ rather than contract, yes. The employer of record becomes the legal employer, runs payroll, files D112 and registers the contract in REGES-Online.

The short version

Romania is one of the lowest-cost labor markets in the EU, with strong English. Employers pay 2.25% on top of gross; employees pay about 41.5% of gross in contributions and income tax, so compare offers on net. Contract only where the work is genuinely independent under the art. 7 test; otherwise use an employer of record. Agree the working window early if you are on US time. If you want three vetted candidates from Romania or anywhere in Europe in 21 days for a flat $6,500, see Hiring Done For You or book a call. To run the search yourself, post the role for $299 and it is live for 60 days.

This is general information, not legal, tax or payroll advice. Confirm the position for the individual hire with a Romanian payroll provider or lawyer before signing.