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Labor Laws in Romania

  • Annual Leave: 20 days
  • Public Holidays: 11
  • Workweek: 40 hours per week.

Income Tax in Romania

Romania has a flat personal income tax rate of 10%.

Value Added Tax (VAT) in Romania

The standard VAT rate in Romania is 19%.

Social Security in Romania

Employer Contributions

  • Total Contribution Rate: Employers are required to contribute a total of 2.25% of the employee's gross salary for labor insurance.
  • Special Conditions: For certain working conditions (e.g., hazardous jobs), additional contributions may apply, but there is no general employer social insurance contribution for normal working conditions.

Employee Contributions

  • Pension Contribution (CAS): Employees contribute 25% of their gross salary to the social insurance system.
  • Health Insurance Contribution (CASS): Employees also contribute 10% of their gross salary for health insurance.
  • Total Employee Contribution: The combined total for employees is 35% of their gross salary.

Work Visas in Romania

Here are the main work visas available in Romania:

  • Employment Visa:This standard long-stay visa is for foreign nationals with a work contract in Romania, valid for one year with possible extensions. Employers are responsible for obtaining the necessary work permits, which tie the visa to a specific role and company.
  • Highly Skilled Worker Visa:This visa, often associated with an EU Blue Card, is for professionals with specialized skills, such as IT or engineering. Applicants need to meet high salary thresholds, typically twice the national gross wage, and the visa is valid for two years.
  • Seconded Worker Visa:Designed for employees temporarily transferred by an overseas company, this visa allows short-term work in Romania, usually for up to one year. This visa type supports international companies’ project-based needs.
  • Self-Employment Visa:For freelancers or those self-employed, this visa requires proof of income and a viable business plan, valid for one year and renewable depending on business conditions.

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