Romania - HR & HR Software Guide
Romania ranks 21st among 44 European countries economic freedom. It is an upper-middle-income economy with a per capita GDP of $24,508. Electronics manufacturing and research are the main driving factors of economic growth. Romania is also the largest electronics manufacturer in Central and Eastern Europe. Other major exports include machinery, vehicles, food products, chemical goods, transport equipment, and pharmaceuticals. The Romanian government’s priorities include investments in healthcare, infrastructure, job creation, and education along with tax and pension reforms by 2020.
Semi-presidential, Representative Democratic Republic
Lași, Cluj-Napoca, Timişoara, Craiova
Regular work schedule in Romania is 8 hours per day and 40 hours per week. Employees are entitled to at least a 12-hour rest period between 2 working days. Work performed between 10 p.m. and 6 a.m. is considered night shift. Employees are considered to be working night shifts if they:
- Perform a minimum of 3 hours of work each day, or
- Work at night for at least 30% of monthly work hours
Employees who work at least 3 hours of night shift every day should undergo a medical checkup at the employer’s expense when the assignment begins. Their standard work hours should be reduced by 1 hour without any salary deduction or they should get a bonus equal at least to 25% of basic salary when they perform a minimum of 3 hours of night work. The duration of a night shift cannot exceed 8 hours over a 3-month period.
Work done more than 8 hours per day or 40 hours per week is considered overtime. Employees cannot work for more than 8 hours of overtime in a day. Overtime should be compensated with at least 75% premium over the base salary or with paid time off in no more than 60 days of being performed. Overtime can be done only with employees’ consent. People less than 18 years of age are forbidden to work overtime.
12 national holidays are observed in Romania:
- Jan. 1 and 2: New Year
- The first and second days of Easter
- May 1: Labor Day
- The first and second days of Pentecost
- Aug. 15: The Assumption
- Nov. 30: Saint Andrew’s Day
- Dec. 1: National Day
- The first and second days of Christmas
Employees who work on a national holiday can take a day off within 30 days of such work.
Employees are entitled to at least 20 days’ paid annual leave every year. Vacation pay should be at least equal to the basic salary and must include bonuses and permanent benefits specified in the ILA. The vacation pay must be given at least 5 days before the vacation begins. Vacation period can be split into segments but at least one segment must have a continuous period of a minimum 15 working days. Unused vacation can be carried over to the next year.
Women employees who have made the minimum contribution to the health insurance for at least one month over the last 12 months qualify for maternity leave of 126 days. Out of the total leave, 63 days can be taken before the childbirth and 63 days afterward. During maternity leave, employees are entitled to 85% of their average wages over the last 12 months. The maternity leave compensation is paid entirely by the National Security Fund.
Fathers are entitled to 5 days’ paternity leave on the days they request within 2 months of childbirth. If the father of a newborn child is completing a childcare course, an additional leave of 10 days is granted.
Employees who are covered by the pension and social insurance programs and have made necessary contributions are entitled to a maximum of 183 days of sick leave in a year. Sick leave can be extended by 90 days if required. Sick leave benefit is equal to 75% of the average monthly wages during the last 6 months. Employers pay for medical leave for the first 5 days while the remainder is paid for by the Social Security Fund.
Parental leave is provided to individuals who:
- Live in Romania
- Have earned taxable income in the 12 months before childbirth
- Have contributed to the social insurance program
The parental leave benefit is 600 leu/month until the child reaches the age of 2 years or 3 years if the child is disabled. Each parent must take leave for at least one month. The government funds the parental leave program entirely.
Pensions and Social Security
Male employees can retire at the age of 65 with at least 15 years of contributions while female employees can retire at 60 years with a full pension. The legal retirement age will increase to 65 by 2030. Employers are required to make the following contributions:
- social contributions varying between 15.8% and 25.8% of monthly gross wages
- medical leave contributions of 0.85% of total payroll
- health contributions of 5.2% of total payroll
- unemployment contributions of 0.5% of monthly gross wages
- salary guarantee fund tax of 0.25% of payroll
- labor accident fund contributions varying between 0.15% and 0.85% of monthly gross wages
Employees need to make the following contributions:
- social security tax of 10.5% of monthly gross wages
- unemployment contribution of 0.5% of monthly gross salary
- health contribution of 5.5% of monthly gross wages
Total health contribution is 13.5% of taxable gross salary, out of which employee contributes 6.5 % whereas employer’s contribution is 7.0%. There is no maximum limit to it.
Employees with at least a 50% loss in working capacity due to an occupational disease or work injury are eligible for workers’ compensation benefits. Temporary disability benefits are equal to 80% of employees’ wages in the 6 months before the disability began and are provided from the first day of disability for a maximum of 180 days in a year. Employers pay for the temporary disability coverage until the employee receives a certificate confirming permanent disability or recovers.
Simplify workforce management in Romania with Mihi HR Software.
- Accelerate employee onboarding with established workflows and guided processes that allow your new employees to hit the ground running from day one.
- Improve employee time tracking and leave management while ensuring compliance with local labor laws and work-time regulations.
- Store, manage, and track employee data on a single, secure system. Improve access and visibility, while built-in guidelines help you maintain legal compliance and audit readiness.
- Turn workforce data into actionable insights with extensive HR reporting and analytics. Make better, more informed decisions and accurately assess the status of your global teams.
- Provide your employees with the support they need with 24/7 access to our Employee Helpdesk.
- One HR software for your global needs
- Ensured compliance with in-country employment and labor laws
- Connectivity and integrations with ERP and Payroll systems
- Better workforce data and increased visibility of global teams
- Supporting 170+ countries and localized in 17+ languages
- Improved employee experience with employee self-service functionality and 24/7 employee support