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Minimum wage in Romania

Romania's payroll

Statutory benefits in Romania

Other employee benefits in Romania

Compliant, seamless payroll and benefits in Romania and beyond

Payroll in Romania

In Romania, payroll management is governed by the Labour Code and tax legislation, which outline employee rights and compensation standards. Key components of payroll include gross salary, income tax, and mandatory social security and health insurance contributions, which must be accurately calculated and deducted.

Employers are generally required to pay employees monthly and must maintain accurate payroll records, including payslips and employment contracts, to ensure compliance with local labour laws.

Regular reporting to tax and social security authorities is mandatory as well. Some of the best practices for effective payroll management include making timely payments, providing transparent and detailed payslips, and staying informed about changes in labour laws and tax regulations. To ensure compliance, it’s best to use payroll software that can help automate calculations and reduce the risk of errors.

It is also essential to establish clear procedures for resolving payroll disputes, ensuring that employees feel heard and valued. In addition, offering benefits like health insurance or meal vouchers can enhance employee satisfaction.

If you are unfamiliar with the local market, managing payroll can be overwhelming, and payroll mistakes can lead to costly fines and legal disputes. However, partnering with a reliable global payroll provider, such as CXC, can help you overcome such challenges. You can rely on their expertise in the local market and understand the Romanian rules, regulations, and best practices.

In this guide, we’ll explore some of the most important factors you need to consider when managing payroll in Romania.

Minimum wage in Romania

Romania’s statutory minimum wage is set by the government and reviewed regularly in line with inflation, labour market conditions, and economic growth. The minimum wage applies nationally and serves as the baseline pay level for full-time employees across most sectors.

Statutory minimum wage

RON 4,325 gross per month (in force from 1 July 2026).
RON 4,050 gross per month (applicable from 1 January to 30 June 2026).

The minimum wage is a gross amount. After income tax and social security contributions, net take-home pay varies depending on individual circumstances and applicable tax reliefs.

For a standard 40-hour workweek, the statutory minimum corresponds to an indicative hourly rate set by law and adjusted automatically when the monthly minimum wage changes.

Sector-specific minimum wages in Romania

While the national minimum wage applies broadly, certain sectors continue to benefit from higher statutory or negotiated minimums, including:

Construction sector
Employees in construction are subject to a higher minimum gross wage than the national baseline. This sector also benefits from specific fiscal incentives, such as reduced social security contributions, which increase net pay.
Agriculture and textiles
Wages in these sectors generally align with the national minimum wage, although collective agreements, bonuses, and seasonal allowances may affect total remuneration.
IT sector
While not subject to a separate minimum wage, many IT employees benefit from income tax exemptions, resulting in substantially higher net earnings compared to other sectors.

Minimum wage increases and labour market impact

Romania’s continued minimum wage increases aim to:

Support low-income workers.
Reduce income inequality.
Gradually narrow the wage gap with other EU Member States.

At the same time, policymakers have sought to balance these increases to limit negative impacts on small and medium-sized enterprises and overall employment levels. The debate continues between concerns over labour cost pressures and the benefits of improved worker purchasing power, retention, and productivity.

Romania's payroll

Navigating the payroll system in Romania involves understanding the payroll frequency, optional 13th-month salary benefits, and the country’s payroll tax obligations. Whether you are managing a business or working in Romania, being aware of these factors will help ensure smooth payroll operations and compliance with the law.

Payroll frequency in Romania

When it comes to the payroll cycle, employees’ wages are typically processed on a monthly basis. Romanian labour laws mandate that wages be paid at least once per month, usually on the last working day of the month, unless otherwise agreed in an employment contract.

Some companies may pay salaries on a bi-weekly or weekly basis, but the Romania’s payroll system primarily revolves around monthly payments. This frequency applies to both gross and net salary disbursements, with employees receiving their net wages (after tax) in their bank accounts.

In cases of overtime or bonuses, employers are required to ensure that these additional payments are included in the payroll for the respective month, unless otherwise stipulated in a company agreement.

13th-month salary in Romania

The concept of a 13th-month salary is not a mandatory requirement under Romanian labour law. However, many companies, especially multinational organisations, and businesses in sectors like IT, banking, and manufacturing, offer a 13th-month salary as a form of bonus or incentive. This additional payment is typically provided in December or can be spread across the year, depending on company policy.

The 13th-month salary is often linked to the company’s performance or the employee’s individual achievements, though it can also be offered as a flat bonus to all employees. While it is not compulsory, the practice is becoming more common as businesses compete to attract and retain talent.

Payroll taxes in Romania

Romania’s payroll taxes are an essential consideration for both employers and employees. Payroll taxes are deducted at source, meaning that employees receive their net salary after taxes have been withheld.

For employees, the following Romania payroll taxes are applicable:

Income tax: A flat rate of 10% applies to all employee earnings.
Social security contributions: Employees contribute 25% towards social security, which covers pensions and related benefits.
Health insurance contributions: Employees also pay 10% of their gross income towards health insurance.

Employers in Romania are responsible for additional contributions on top of the employee’s gross salary:

Work insurance contribution: Employers pay 2.25% of the total gross salary to cover various forms of social protection, including unemployment and accidents.

In addition, social insurance contributions vary depending on the working conditions as well. For employees working under particular conditions, employers are required to contribute 4% of the employee’s gross salary. For those in special working conditions, this contribution increases to 8%. However, for employees working under normal conditions, employers are not obligated to pay any social insurance contributions.

Statutory benefits in Romania

The statutory benefits, including health insurance and various types of pensions in Romania, ensure that employees have access to essential services during their working years and beyond.

The country’s pension system, which includes public and private funds, offers flexibility for both standard and early retirees, as well as support for those who are disabled or survivors of contributors. Understanding these benefits is critical for financial planning and long-term security.

Health insurance in Romania

All employees are required to contribute to the national health insurance system, which is managed by the National Health Insurance House (CNAS). This public health system provides access to medical services, including general healthcare, hospital treatments, and prescriptions.

Contributions for health insurance are deducted from employees’ gross wages at a rate of 10%. Employers are not required to contribute additional amounts towards health insurance but may offer supplemental private health insurance as part of an employee benefits package.

While public healthcare in Romania is funded through these contributions, many employees opt for private health insurance to cover treatments not fully subsidised by the public system. The increasing availability of private health insurance options makes it a popular supplement, especially for those seeking faster or more specialised healthcare services.

Retirement and pension benefits in Romania

The Romanian pension scheme is designed to provide financial security during retirement, ensuring that both Romanian citizens and foreigners with permanent residence in the country have a reliable income once they reach retirement age.

The pension system is based on a pension points system, which takes into account an individual’s contribution period and their income level during their working years.

Standard retirement (old age pension) in Romania

The standard retirement age in Romania is 65 for men and 63 for women, though these ages are gradually being equalised.

To qualify for a full old-age pension, employees must meet specific contribution requirements, which is typically around 15 years of contributions to the pension scheme. This pension is funded by a pay-as-you-go system, meaning current workers’ contributions fund the pensions of retired citizens.

The pension in the country is calculated based on the individual’s contribution history, salary, and the country’s average salary index. Upon reaching the retirement age and contribution period, retirees are entitled to receive monthly payments from the state.

Moreover, thanks to international agreements Romania has established with other countries, the social security rights of Romanian citizens and foreigners can be transferred to other nations where they may choose to reside. This ensures that workers who spend time working abroad do not lose out on their Romanian pension benefits.

Early retirement in Romania

Early retirement is an option available for individuals who have contributed for a period longer than the minimum required. Employees can retire up to five years earlier than the standard retirement age without facing reductions in their pension, provided they have contributed at least eight years beyond the standard contribution requirement (i.e., 43 years for men and 41 years for women).

Partial early retirement in Romania

For those who wish to retire before the required contribution period, partial early retirement is an option. However, in this case, the pension amount will be reduced in proportion to the years remaining until reaching the full retirement age. This reduction is permanent, and the pension benefits are adjusted based on the number of years contributed below the requirement.

Disability pension in Romania

In addition to old-age pensions, Romania offers disability pensions for individuals who can no longer work due to illness or injury. There are three categories of disability pensions, depending on the severity of the condition and the ability to continue working in some capacity.

Category I: Full disability, where the individual is completely unable to work.
Category II: Severe disability, where the individual is unable to continue in their current role but may be able to take up less demanding work.
Category III: Partial disability, where the individual can work part-time or in less demanding roles.

To qualify, individuals must undergo a medical evaluation, and their pension is calculated based on the extent of their disability and contribution history.

Survivor’s pension in Romania

In the unfortunate event of a contributor’s death, survivor’s pensions are available to their dependents, including spouses, children, or other family members. This benefit ensures that the deceased’s dependents receive financial support based on the contributor’s contribution record.

Private pension schemes in Romania

Alongside the public pension system, private pension schemes in Romania provide an additional layer of security. Romania’s Pillar II pension system is mandatory for employees under 35 and voluntary for those aged between 35 and 45. This private pension fund is managed by private administrators, and it offers workers the opportunity to build supplementary retirement savings.

In addition, Pillar III represents optional private pension schemes, which allow individuals to voluntarily contribute to private pension funds in addition to their mandatory contributions. These private pension schemes are an attractive option for those seeking to boost their retirement savings, as they come with tax benefits and more investment flexibility than the public system.

Fourth pension pillar employer-employee contributions in Romania

Introduced in February 2020, the fourth pillar allows employers and employees to contribute additional funds toward retirement savings. The contributions made by the employer and employee combined cannot exceed one-third of the employee’s gross salary. This pillar adds flexibility, enabling companies to offer enhanced pension benefits to their employees as part of their overall compensation packages.

Other employee benefits in Romania

As the labour market in Romania evolves, employers are increasingly recognising the importance of offering supplemental employee benefits to attract and retain top talent. Beyond the mandatory benefits mandated by law, companies in Romania are introducing various perks that enhance the overall employee experience.

Private healthcare for employees in Romania

One of the most sought-after employee benefits in Romania is private healthcare. While the public healthcare system provides essential services, many employees prefer the quicker access and higher quality of care associated with private healthcare options. Employers often partner with private healthcare providers to offer comprehensive health insurance plans that cover a wide range of medical services.

This benefit not only helps employees feel more secure regarding their health but also enhances their overall job satisfaction. Companies that offer private healthcare in Romania typically see improved employee morale and reduced absenteeism, as workers have access to timely medical care and preventive services.

Additional vacation days in Romania

Another valuable benefit is the provision of additional vacation days. While the legal minimum for vacation days in Romania is 20 days per year, many employers offer extra days to enhance employee work-life balance and job satisfaction. This can be especially attractive for employees looking to take longer breaks for personal reasons, travel, or family time.

Providing extra vacation days is a strategic move for companies aiming to foster a positive workplace culture and improve employee retention. Research shows that employees who take regular vacations are generally more productive and less prone to burnout, benefiting both the individual and the organisation.

Mobile phone and laptop subsidies for employees in Romania

Many companies in Romania are also providing mobile device subsidies as part of their employee benefits package. With remote work becoming more common, organisations understand the importance of equipping their employees with the necessary tools to perform their jobs efficiently.

By subsidising mobile phones and laptops, companies ensure that employees have access to the latest technology, which can improve communication and productivity. These subsidies are particularly beneficial in sectors such as IT, sales, and consulting, where employees often work remotely or travel for work.

Employee travel expenses reimbursement in Romania

For employees who travel for work, travel expenses reimbursement is a crucial benefit. This includes covering costs for transportation, accommodation, and meals incurred during business trips. Offering this reimbursement not only alleviates financial stress for employees but also encourages them to participate in necessary travel for meetings, conferences, or client interactions.

Implementing a clear and fair travel expense reimbursement policy helps ensure that employees feel valued and supported while representing the company on the road. This can lead to improved job satisfaction and increased loyalty to the organisation.

Compliant, seamless payroll and benefits in Romania and beyond

For companies looking to hire in Romania, managing and running payroll can be a daunting task, especially with evolving labour laws and shifting best practices. But there’s a simpler way to do this: partnering with a reliable global payroll provider.

When you work with CXC to engage workers in Romania, we’ll handle everything from tax withholding to employee bonuses on your behalf. With over 30 years of experience in the global employment space, we have the expertise to help you hire workers compliantly in Romania and 100+ countries.

Interested to find out more? Speak to our team today

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FAQ's

How is payroll processed in Romania?

Payroll in Romania is usually processed monthly. Employers calculate gross pay, deduct income tax and employee social contributions, add the employer contribution and pay the employee’s net salary. Under the Labour Code, salary must be paid at least once a month on the date established in the employment contract, collective agreement or internal regulations.

The payroll cycle also covers salary payment,, benefit adjustments and employment-record changes. Although Romanian law does not prescribe a universal payslip format for every employer, employees should receive or be able to obtain clear information supporting the salary calculation and deductions. Contract data, working time and salary changes must remain consistent with the employment contract and REGES-Online record. Payroll teams then prepare the required tax and social-security reporting, including Declaration 112, and retain calculation and payment evidence.

The exact result can differ where personal allowances, sick leave, part-time work, bonuses, sector rules or collective agreements apply. Employees working under more than one employment contract and certain part-time employees may also require special contribution calculations. A monthly payroll calendar keeps inputs, calculations, payments and reporting aligned.

What are the steps to set up payroll in Romania?

To set up payroll in Romania, an employer needs the correct employing structure and tax registrations, registered employee contracts, payroll data and a process for calculating salaries, deductions, contributions and monthly filings.

Employee contracts and personal data are collected, checked and registered before work starts. The payroll setup must capture gross salary, working hours, leave, bonuses, benefits, bank details and any sector-specific rules. The calculation engine is configured for income tax, CAS, CASS and CAM, with pay statements or equivalent calculation records and audit records produced for every pay period.

Finally, the employer establishes electronic filing, bank-payment controls, data-protection procedures and a process for correcting errors. D112 reporting, REGES-Online updates and benefit administration should operate from the same approved data.

Do you need a local entity to run payroll in Romania?

Not always. A company can run Romanian payroll through its own Romanian entity or another properly registered employment arrangement. Businesses without a local entity can also use an Employer of Record to employ and pay workers locally.

An EOR offers a different structure. The Romanian legal employer becomes the legal employer, operates the local payroll and handles statutory deductions, filings, benefits and employment records. The overseas business continues directing the employee’s day-to-day work and performance without building its own Romanian payroll infrastructure.

The legal structure must be reviewed carefully. If the provider hires an employee and places that person under the supervision and direction of the client, the arrangement may fall within Romania’s temporary agency work regime and require an authorised temporary work agency. The right answer depends on headcount, permanence, tax structure and who will hold the employment relationship. An owned entity provides direct control of payroll; an EOR provides local capability without immediate incorporation.

What is the cost of payroll administration in Romania?

There is no statutory or standard payroll-administration fee in Romania. Providers generally price services according to employee numbers, payroll complexity, reporting requirements and the level of HR support included. Basic payroll may cover monthly salary calculations, pay statements and required payroll reporting, while services such as HR administration, employment contract changes, onboarding, offboarding and additional reporting can increase the fee.

Providers may also charge a minimum monthly fee for smaller teams or a one-off implementation fee when payroll is first set up. Additional charges may apply for off-cycle payroll, amended returns, year-end reporting or support during inspections.

These fees cover the payroll administration service itself. Employee salaries, employer contributions, benefits and other employment costs are paid separately.

What taxes and contributions must employers pay on payroll in Romania?

Standard Romanian payroll includes 10% income tax, 25% pension contribution (CAS), 10% health contribution (CASS) and a 2.25% employer work insurance contribution (CAM).

CAS and CASS are generally employee contributions withheld from gross salary, while CAM is normally borne by the employer in addition to gross salary. Income tax applies to taxable salary income after allowable deductions. CAS and CASS are generally calculated on the relevant gross-income base, subject to legally defined bases, exemptions and special rules. Employers may owe additional pension contributions for particularly difficult or special working conditions. The additional employer rates are generally 4% for difficult working conditions and 8% for special or other qualifying working conditions. Sector-specific tax facilities can change the standard result. Special minimum contribution-base rules can apply to certain part-time or low-paid employees. Depending on the circumstances, the employer may have to bear the difference between contributions calculated on actual earnings and those calculated using the applicable statutory minimum base, subject to exemptions.

The employer must calculate, withhold, pay and report the correct amounts for each employee. Errors can affect take-home pay, social-insurance records and the employer’s exposure to interest, penalties or reassessment.

What are the mandatory employee benefits in Romania?

Mandatory employee benefits in Romania include at least 20 working days of paid annual leave, public holiday rights, statutory sick leave, maternity and family-related leave, plus pension and health and coverage through payroll contributions. Employees may also qualify for unemployment benefits and other social-security protections where the statutory conditions are satisfied.

Annual leave cannot normally be replaced with a cash payment while employment continues. Payment in lieu is permitted when the employment contract ends and accrued holiday remains unused.

The legal package can be increased by an employment contract, internal policy, collective agreement or sector rule. Additional annual leave, meal vouchers, private medical insurance, transport support, bonuses and a 13th-month payment are common market benefits, but they are not universally mandatory. Once promised contractually or through an applicable agreement, they may become enforceable terms.

Payroll must reflect benefits accurately, including taxable treatment, eligibility, absence and changes. The correct entitlement can depend on working time, role, service period and the reason for leave.

What is the minimum wage in Romania?

From 1 July 2026, Romania’s national minimum gross basic salary is RON 4,325 per month for a standard full-time schedule averaging 166.667 hours per month. This corresponds to RON 25.949 per hour.

The national amount is a floor for the basic salary, not a ceiling. Part-time pay is generally assessed in proportion to contracted working time, while certain sectors, occupations or collective agreements may require higher rates. Special rules may nevertheless require social contributions for some part-time employees to be calculated by reference to a higher statutory base than their actual part-time salary. Employers must also consider the rule limiting how long an employee may remain paid exactly at the statutory minimum before the basic salary must increase. The statutory minimum may generally be paid under the same employment contract for no more than 24 months, after which the basic salary must be set above the minimum.

Allowances, bonuses and vouchers do not automatically cure a basic salary below the applicable minimum. Payroll should distinguish the contractual basic salary from additional compensation.

What is Declaration 112 (D112) in Romania and when must it be filed?

Declaration 112 (D112) is Romania’s payroll tax and social contribution return. It is normally filed electronically by the 25th day of the month following the payroll month.

The normal filing deadline is the 25th day of the month following the month for which salary income is reported. Eligible employers may use quarterly filing in limited cases, subject to the conditions and exceptions in the tax rules. For quarterly filers, the return is generally due by the 25th day of the month following the relevant quarter. The return is submitted electronically, and the related amounts are generally paid by the same statutory deadline.

The form and validation rules can change. Employers must use the current D112 form, reconcile it to payroll and correct rejected or inaccurate submissions promptly. Late or incorrect reporting can affect employee insurance records and trigger tax penalties or corrections.

What are CAS, CASS, and CAM contributions in Romania?

CAS is Romania’s 25% employee pension contribution; CASS is the 10% employee health insurance contribution and CAM is the standard 2.25% employer work insurance contribution.

CAS and CASS are normally calculated through payroll, deducted from the employee’s gross pay and remitted by the employer. CAM is paid on top of gross salary by the employer. Additional employer pension contributions can apply to particularly difficult or special working conditions, and specific exemptions, contribution bases or tax measures may alter the standard calculation.

CAM finances several employment-related risks and funds, including work accidents, unemployment-related protection and certain medical-leave payments. It should not be described as an employee deduction. The three amounts should not be treated as interchangeable. Their bases, payer, purpose and exceptions differ, so payroll reports must show them separately and reconcile them to the employee’s contract and D112 return.

How does CXC ensure accurate payroll and benefits management in Romania?

CXC manages Romanian payroll from the employee data that affects each pay run, including salary, bonuses, leave, benefits and any changes made during the month.

Our payroll team calculates the applicable income tax and social contributions, prepares payslips and manages the required payroll reporting and payments. Changes such as a new salary, unpaid leave, sick leave or an employee leaving the business are also reflected in the relevant payroll cycle.

Through our Employer of Record (EOR) service, payroll is managed alongside the employee’s local employment requirements. This helps keep contract information, payroll records and statutory benefits consistent rather than managing each part separately.

CXC can also manage payroll for companies with employees in Romania and other countries, reducing the need to work with a different payroll provider in every market.

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