Hiring at a Glance

Romania is an EU member with a fast-growing economy and a very strong IT and engineering talent pool. Its strategic location in Eastern Europe offers access to EU markets, and Romania’s labor costs are lower than those in Western Europe (e.g. minimum wage ~RON 3,300/month as of 2023). This combination of cost-efficiency and skills makes Romania an attractive hiring destination. Large tech firms (like Microsoft, IBM) have development centers here, reflecting a mature outsourcing environment.

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Key Characteristics of the Talent Market

Romania’s workforce is well-educated and diverse, with particular strength in software development and tech. Romania ranks very highly in certified IT specialists per capita. Universities produce many computer scientists, engineers, and analysts; the country is a regional hub for software services and R&D. Labor laws are EU-aligned, providing strong worker protections (e.g. regulated working hours, robust holiday entitlement) and requiring written contracts for all employees. Compensation tends to be more affordable than in Western Europe; for example, Romanian graduates command lower salaries but deliver comparable quality. Language skills are good – most professionals speak English and/or other European languages.

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Most In-Demand Skills in 2026

Employers in Romania are typically looking for software engineers, cybersecurity experts, data scientists and analysts, as well as cloud and AI specialists. In-demand roles also include financial analysts, accounting professionals, and customer support (multi-language) given Romania’s BPO industry. The tech sector dominates recruitment, so skills in Java, C++, Python, machine learning, and cloud technologies are especially sought after.

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Top Universities Supplying Talent

Leading Romanian institutions include University of Bucharest, Babeș-Bolyai University (Cluj-Napoca), and the Politehnica University of Bucharest. These universities are frequently cited among Romania’s best – for example, QS and THE rankings list Babeș-Bolyai and University of Bucharest in their tables. They graduate thousands of STEM students annually, feeding into Romania’s growing tech and engineering sectors.

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Salary Benchmarks for Roles

• Software Engineer: EUR 35,000–65,000 per year (gross)
  
• Data Scientist / Analyst: EUR 30,000–55,000 per year
  
• Product Manager (IT): EUR 45,000–75,000 per year
  
• Project Manager / Finance: EUR 35,000–60,000 per year
  

These are rough ranges; Bucharest and Cluj typically pay toward the top of these scales, while smaller cities are lower. Bonuses and benefits (e.g. meal vouchers, private healthcare) are common, so total compensation may exceed the base salary.

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Employer of Record vs Legal Entity Setup in Romania

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To Legally Hire Employees, a Company Must

• Establish a Romanian legal entity or appoint an EOR. Many firms choose to form an SRL (LLC) or branch in Romania. Corporate registration is relatively fast (often 2–5 business days for an SRL) and allows full foreign ownership. Alternatively, an EOR can be used to employ staff without entity setup.
  
• Register for tax and social insurance. Once incorporated, a company must register with the National Tax Administration (ANAF) and with Romania’s social security and health insurance funds. For hiring, the employer registers each new employee in Romania’s electronic employment register (ReviSal) and sets up payroll tax accounts.
  
• Issue compliant employment contracts. Contracts must be written in Romanian and include terms per the Romanian Labor Code (salary, hours, leave, notice periods, etc.). Before the employee starts, the employer must register the contract with ReviSal. Contracts typically specify the applicable collective agreement if relevant.
  
• Withhold taxes and contributions. Employers are required to withhold a flat 10% income tax from wages and remit it, along with health (10%) and social (25%) contributions, to the authorities. Employers pay additional employer-side contributions for unemployment (0.5%), work accidents (0.15–0.85%), and a medical leave fund (0.85%).
  
  

Cost of Entity Setup

Setting up a Romanian company involves small government fees and customary notary expenses. As of 2025, the online SRL registration fee is modest, and minimum capital is only RON 1 (effectively negligible). Typical professional fees (legal/notary/accounting) amount to a few hundred euros. The entire process (name reservation, document prep, ONRC submission, bank account opening) usually completes in 2–4 weeks. Once established, the company must budget for ongoing costs: annual accounting, tax filings, and monthly payroll administration (deductions, payslips, social declarations) are required.

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What Hiring Through an EOR Means in Romania

An Employer of Record (EOR) in Romania becomes the legal employer registered with Romanian tax and labour authorities, while the employee works exclusively for your company. You retain operational control over work and performance, while the EOR assumes responsibility for all employer obligations under Romanian labour and tax law.

Romania is a high-compliance labour market, governed by:

• Romanian Labour Code
  
• Mandatory social insurance system
  
• Revisal electronic employment registry
  
• Labour inspection enforcement
  

Foreign companies cannot legally employ staff in Romania without:

• A Romanian employing entity
  
• Registration with tax office and labour inspectorate
  
• Revisal reporting
  

An EOR provides this employer infrastructure without requiring you to establish a Romanian company.

An EOR in Romania handles:

• Labour Code–compliant employment contracts
  
• Fixed-term vs permanent structuring
  
• Payroll processing in RON
  
• Personal income tax withholding
  
• Pension, health, and work insurance
  
• Revisal employee registration
  
• Statutory leave and public holidays
  
• Termination and severance handling
  
• Work permits and visas for foreigners
  

This model works best for companies that want to hire in Romania without managing Revisal, payroll, and termination compliance directly.

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Risk Involved in Both Models

Romania’s labour system is codified, inspection-driven, and employee-protective.

Key characteristics:

• Written contracts required
  
• Fixed-term contracts limited
  
• Mandatory social contributions
  
• Strict termination grounds
  
• Labour inspections are frequent
  

Compliance failures can result in:

• Fines from labour inspectorate
  
• Back payment of wages or benefits
  
• Invalid termination rulings
  

In Romania, payroll and termination procedure errors are the main employer risks.

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EOR Vs. Entity: When to use What?

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Why is an EOR the Most Efficient Way to Hire in Romania?

Romania offers strong talent in engineering, IT, support, and operations but employment is governed by mandatory reporting and strict termination law.

An EOR is not just payroll. It is the legal employer recognised by Romanian authorities, responsible for:

• Labour law compliance
  
• Revisal registration
  
• Payroll and tax
  
• Social insurance
  
• Termination execution
  

This allows foreign companies to hire in Romania without inheriting payroll and labour-inspection risk.

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#1. EOR Manages Fixed-Term vs Permanent Contract Risk

Romania limits fixed-term contracts:

• Maximum duration and renewals
• Mandatory conversion to permanent after limits

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#2. EOR Controls Social Contributions & Payroll Errors

Employment cost is driven by:

• Pension
  
• Health insurance
  
• Work insurance
  
• Income tax

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#3. EOR Controls Termination & Severance Risk

Romanian termination law requires:

• Legal grounds
  
• Proper procedure
  
• Notice periods

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#4. EOR Avoids Entity & Admin Overhead

Entity setup requires:

• Company registration
  
• Tax registration
  
• Accounting and payroll

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EOR vs. PEO in Romania: How to Decide the Right Hiring Model?

A PEO in Romania cannot legally employ workers or sponsor visas. A Romanian employing entity is required.

• PEO: HR/payroll support only
  
• EOR: Legal employer

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Key question:

Do you want to manage Revisal, payroll, and labour inspections yourself?

If not, EOR is the better option.

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Payroll, Taxes, and Monthly Compliance

Romania’s payroll system uses a flat tax and contribution structure. Employers withhold a flat 10% income tax from each salary. Employees pay 25% for pension and 10% for health insurance out of gross salary (35% total). Employers additionally withhold funds for unemployment (0.5%), work accident (0.15–0.85%), and medical leave (0.85%). In practice, the employer calculates gross-to-net pay by deducting employee contributions (35% plus 10% tax) and then adds the employer contributions on top of gross. Monthly, employers remit all withheld taxes and contributions to ANAF by the 25th of the following month, and file social security reports electronically. Payslips must detail gross vs. net pay and each deduction. As noted by Papaya, a compliant payroll run “handles all payroll calculations, tax optimizations, social security contributions, and regulatory filings” for Romania. This includes aligning with local tax optimization incentives (e.g. IT exemptions) while ensuring remittances are accurate.

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Salary Structure: Where Most Compliance Issues Begin

Romanian payroll compliance often hinges on applying the correct tax exemptions and CBA provisions. For example, Romania has a fixed tax-exempt threshold (RON 28,423 per year) that must be subtracted from gross salary before applying the 10% tax. Employers must apply this correctly for each employee to avoid under-reporting tax. Another pitfall is miscalculating overtime or bonuses: all extra payments are subject to the same tax and contribution rules. Misclassifying fringe benefits (e.g. meals, travel allowances) can also create issues, since some benefits may be partially tax-exempt. Strict record-keeping of hours, bonuses, and allowances is essential. In short, any error in computing the taxable base (gross minus exemptions) or in applying statutory rates invites penalties.

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What Monthly Payroll Operations Actually Involve

Each month, a Romanian employer must: verify worked hours and pay rates; calculate gross salaries; deduct 10% PIT plus 35% total employee contributions (25% pension + 10% health); add employer contributions (unemployment, etc.); and finalize net pay. Payslips (in Romanian) are prepared for distribution. Before paying net wages, the employer remits all withheld tax and contributions to the tax authorities and social funds via the online system. In practice, employers often use payroll software or outsource this process. As Papaya emphasizes, using an EOR ensures that “all payroll calculations… and regulatory filings” are done correctly. Additionally, Romanian law requires submission of a monthly social contributions declaration (D112 form) and a monthly tax declaration (D112 or D205), which an employer or EOR handles. These steps – gross-to-net calculation, issuing payslips, and timely online reporting – complete the monthly payroll cycle in Romania.

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Step-by-Step Onboarding Process With an EOR in Romania

Hiring in Romania is not just contract signing, it is a registry-driven, inspection-sensitive process. Every step must align with Labour Code rules, tax filings, and Revisal registration timelines.

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1. Confirm a Labour-Registered Romanian Employer

Start by verifying that your EOR is:

• Registered with the Romanian tax authority (ANAF)
  
• Registered with the Labour Inspectorate
  
• Enabled to submit data into Revisal
  

Revisal is Romania’s official electronic employment registry. Employment that is not registered correctly is treated as illegal work, regardless of contract signatures.

Why this matters:
If a hire is not registered in Revisal before the first working day, labour inspectors can issue heavy fines and invalidate the employment.

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2. Validate Role Structure and Contract Type

Romania strictly regulates:

• Fixed-term vs permanent contracts
  
• Maximum duration of fixed-term contracts
  
• Renewal limits
  
• Trial period length
  

Your EOR reviews:

• Whether the role can legally be fixed-term
  
• Whether it must be permanent
  
• Probation limits based on role type
  
• Working hours and overtime model
  

Why this matters:
Using fixed-term contracts incorrectly can force conversion to permanent status and trigger penalties.

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3. Request a Full Cost-to-Company Breakdown

Romanian employment cost is driven by employee-heavy contributions, not just salary.

The quote should include:

• Gross salary
  
• Employer work insurance (CAM)
  
• Employee pension and health deductions
  
• Income tax
  
• Net take-home pay
  
• EOR management fee
  

Why this matters:
Two salaries that look similar can produce very different net pay and total cost because of Romania’s contribution structure.

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4. Generate Labour Code–Compliant Contract

Contracts must comply with the Romanian Labour Code and include:

• Job title and duties
  
• Working hours and overtime rules
  
• Salary and pay frequency
  
• Probation period
  
• Termination and notice clauses
  
• Reference to Labour Code rights
  

Contracts are reviewed for:

• Enforceability in labour court
  
• Compliance with inspectorate standards
  

Why this matters:
Romanian labour courts strictly follow written contracts and statutory wording.

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5. Register the Employee in Revisal

Before the employee’s first working day, the EOR must:

• Upload the contract to Revisal
  
• Register job title, salary, hours, and contract type
  
• Confirm registration timestamp
  

This step is legally mandatory.

Why this matters:
Late Revisal registration is treated as illegal employment even if salary is paid correctly.

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6. Register for Tax and Social Insurance

The EOR registers the employee for:

• Income tax
  
• Pension (CAS)
  
• Health insurance (CASS)
  
• Work insurance (CAM)
  

Employee and employer contributions are calculated automatically from this setup.

Why this matters:
Incorrect registration leads to tax penalties and back payments during inspections.

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7. Run Payroll and Statutory Reporting

Each month the EOR manages:

• Salary calculation
  
• Contribution deductions
  
• Income tax filing
  
• Payroll reporting to ANAF
  
• Payslip issuance
  

The EOR also monitors changes in:

• Tax rates
  
• Minimum wage
  
• Labour Code amendments
  

Why this matters:
Romania updates labour and tax rules frequently. Errors accumulate fast if not corrected early.

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8. Manage Ongoing Compliance and Inspections

The EOR prepares for:

• Labour inspectorate audits
  
• Contract verification
  
• Revisal record reviews
  
• Payroll documentation checks
  

Why this matters:
Romanian labour inspections are active and documentation-driven.

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Build Your Romania Team with Bolto EOR

Expanding into Romania is not just about access to talent, it is about staying audit-proof in a registry-based labour system.

Bolto’s Employer of Record model is built to absorb:

• Labour Code complexity
  
• Revisal obligations
  
• Payroll and contribution risk
  
• Termination procedure exposure
  

So you can build teams in Romania without becoming the legal employer.

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Local Labour Compliance, Fully Managed

Bolto acts as the legal employer in Romania and manages:

• Labour Code–compliant contracts
  
• Fixed-term vs permanent structuring
  
• Revisal registration and updates
  
• Payroll and tax filings
  
• Social contribution compliance
  
• Labour inspectorate interactions
  
  

Hire Without Entity Setup or Inspection Exposure

Setting up a Romanian entity requires:

• Company incorporation
  
• Tax registration
  
• Revisal access
  
• Payroll systems
  
• Ongoing inspections
  

With Bolto EOR, you can:

• Hire in weeks, not months
  
• Avoid legal entity obligations
  
• Exit without winding down a company
  

This is ideal for:

• Market testing
  
• Distributed teams
  
• Small or mid-size hiring plans
  
  

Transparent Costs, No Compliance Surprises

Bolto provides:

• Location-specific cost breakdowns
  
• Employer and employee contributions
  
• Net salary clarity
  
• Fixed EOR fees
  
  

Full Employee Lifecycle Support

Bolto manages the entire Romanian employment lifecycle:

• Contract drafting
  
• Revisal updates for role or salary changes
  
• Payroll and tax
  
• Leave and absence tracking
  
• Lawful termination and notice handling
  
• Labour court support if disputes arise
  

You are never forced to deal directly with Romanian labour authorities.

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Built for Risk-Controlled Growth in Romania

Romania penalizes:

• Late Revisal entries
  
• Wrong contract types
  
• Payroll mistakes
  
• Illegal termination
  

Bolto’s EOR model is built for companies that want to:

• Hire fast
  
• Stay inspection-ready
  
• Avoid labour-court exposure
  
• Scale without entity risk