Working in Romania – types, contracts, rights, annual/sick leave, hours
There are several ways you can work in Romania: as an employee, as a third-party employee, as a freelancer or as an entrepreneur.
If you have come to Romania as a permanent, trainee, seasonal or cross-border worker, you must first obtain the work permit, then the long-stay visa for employment and eventually the residence permit.
The Romanian Labor Code regulates all work relations, the control of the application of regulations in the field of labor relations, as well as the labor jurisdiction. The provisions of the Labor Code also apply to foreign citizens or stateless persons with an individual employment contract who work for a Romanian employer on Romanian territory.
The individual employment contract is concluded on the basis of the written consent of the parties (the employer and the employee) in Romanian. The obligation to conclude an individual employment contract in written form rests with the employer, prior to the commencement of the employment relationship.
It is very important to have an individual employment contract written in writing with your employer and registered with the Territorial Labor Inspectorate (ITM). The individual employment contract allows you access to social protection measures and protects you from any abuse of your employer.
Do I have the right to work?
If you are an employee in Romania, you are mainly entitled to: payment for the work done; daily and weekly rest, annual leave (21 days), equal opportunities and treatment, workplace dignity, occupational safety and health, access to vocational training, information and consultation, to take part in determining and improving working conditions and the employed environment, redundancy protection, collective and individual bargaining, participation in collective action, establishment or membership of a trade union.
What employment services are available to me?
Facilitation of access to employment. Your local Integration Officer can offer you counselling regarding the right to employment, vocational training and diploma recognition. He will also inform you about the public institutions that are responsible for specific duties regarding these issues.
Earnings and Tax
The minimum gross salary in Romania is of 2.080 RON(Lei)/Month or 520 EUR/Month, and the net salary (after taxes) is 1263 RON(Lei)/Month or 316 EUR/Month. This is calculated for a full time job, on a program of 40 hours/week.
Individuals who have a degree and at least one year experience in the field will have a gross salary of 2350 RON/Month or 588 EUR/Month and the net salary (after taxes) is 1413 RON(Lei) or 353 EUR/Month. This is calculated for a full time job, on a program of 40 hours/week.
Taxes deducted from the salary:
- 25% CAS (contribution for social insurance) – pensions
- 10% CAAS (contribution for social health insurance) – health insurance
- 10% income tax
Working for Yourself
There are several ways in which you can work for yourself: self-employment, entrepreneurship and freelancing.
Romanian legislation does not have a separate category for taxpayers called freelancers or self-employed. Therefore the level of social and tax contributions is the same. Freelancers have to fill the same tax declarations as everyone else. But depending on their activity, their work may be regulated by several types of contracts.
Self-employment (freelancing) can be legally regulated either by an Authorized Physical Person (PFA) contract or by a copyright contract, for creative activities. These two types of contracts are most common for those who want to work on their own in Romania.
Further Information and Links
This is a platform where you can calculate what your net income is after paying taxes: https://www.impozitsalariu.ro/
You can find more information on the subject here:
https://rio.jrc.ec.europa.eu/en/file/11948/download?token=1eRQ_kYG – Start-ups, Scale-ups and Entrepreneurship in Romania, Horizon 2020 Policy