Romania offers a fast-growing, cost-competitive tech workforce and, unusually, a very low employer contribution after its 2018 tax shift. All-in employer cost runs around 1.03x the gross salary. Here is what to know before your first Romanian hire.
Employment runs under the Labour Code, with written contracts registered in the national REVISAL system. A 2018 reform moved most social contributions to the employee, leaving the employer with a single small labour-insurance contribution.
After the 2018 shift, the employer pays only a 2.25% labour-insurance contribution; pension and health are withheld from the employee.
Because pension (25%) and health (10%) are deducted from the employee, quoted gross salaries look higher relative to net than in neighbouring countries.
Employees pay pension, health, and a 10% income tax, all withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Romanian employment contract, REVISAL registration, payroll, and benefits, handled. One invoice, flat $399 per month.