Regulations for Working in Romania

Overview

Romania is increasingly becoming a sought-after location for international projects, business travel, and flexible working models such as workations. As an EU member state with well-trained professionals and a stable digital infrastructure, the country offers attractive conditions for temporary international assignments – whether for meetings, technical services, or project-based work.

However, even for short-term assignments, clear legal requirements apply, particularly regarding posting notifications, labour law, social security, and tax obligations. Companies sending employees to Romania should familiarise themselves with local requirements early on to avoid fines, administrative obstacles, or compliance risks.

EU Posted Workers Directive

What requirements apply?

Foreign employers who post workers to Romania are required to submit a posting notification to the competent local labour inspectorate before the posting begins. Any changes to the initial notification must be reported to the Romanian labour authorities no later than the day the change takes effect, by submitting an updated notification.

Required Documents

Foreign employers must keep the following documents available:

Documentation showing the total remuneration of the posted employees, with the posting allowance stated separately
Expenses related to the posting and their reimbursement
Employment contract
Proof of payment of wages to the posted employees
A1 Certificate for social security
Company agreement

A translation of the documents into Romanian must be available. Foreign employers must retain all documents related to the posting for three years after the end of the posting.

Legal Representative in Romania

If the foreign employer does not have a legal representative in Romania, the posted employee may be appointed as the contact person acting on behalf of the foreign employer.

Penalties for violation

Non-compliance may result in fines ranging from 5,000 RON to 9,000 RON (approximately EUR 1,090 to EUR 1,960). The following violations are subject to penalties:

Failure to submit the posting notification
Failure to provide or make available the required posting documents
Failure to translate the documents into Romanian
Failure to appoint a contact person
Failure to submit the requested documents to the authorities within 20 working days after receiving the request, following the end of the posting

Labour Law

Minimum Wage

As of 1 January 2024, Romania has two minimum wage levels:

The standard minimum wage is 3,700 RON per month (approx. EUR 744.62)
In the construction sector, the minimum wage is 4,582 RON per month
In agriculture and the food industry, it is 3,436 RON per month

There are no generally binding collective agreements in Romania. However, company-level collective agreements may exist and apply only to the specific company. The minimum wages established in collective agreements may not fall below the national gross minimum wage.

Working Time

The regular working time in Romania is 8 hours per day / 40 hours per week.

Important Hints

Failure to comply with applicable labour law may result in financial obligations, fines, or claims under local termination and working time laws.

Social Security

If a worker is posted from an EU country to Romania, EU Regulation 883/2004 on the coordination of social security systems applies.

A1 Certificate available: The employee remains insured in the home country
No A1 Certificate: Romanian social security rules apply, and the foreign employer must act as if it were a Romanian employer

Important Hints

Violations may result in extensive administrative obligations, back payments of contributions (with interest), increased audit exposure, and significant penalties. Reputational damage can also occur in such cases.

Income Tax

Tax liability for income from employment in Romania depends on the tax residency status of the posted employee. Posted workers may be exempt from Romanian income tax if they are not tax residents and meet the conditions of the relevant double taxation agreement.

If the posted employee is liable for tax on employment income received from a foreign employer, they must declare and pay income tax monthly (by the 25th of the month for the previous month). Foreign employers are not required to withhold and remit tax on the employee’s income.

Exemptions

As of 2 April 2023, "digital nomads" are exempt from the obligation to declare and pay income tax on employment income if their stay in Romania does not exceed 183 days within 12 consecutive months. A "digital nomad" is defined as a foreign individual employed by a company based outside of Romania, who performs their work remotely using IT and communication technology.

Important Hints

Consequences of non-compliance may vary depending on the situation. However, in many cases, a mandatory tax declaration in the host country may arise, leading to further and extensive implications for both the employee and the company.

Immigration & Visas

International activities require exact compliance with international visa and entry requirements. The traveller, the type of activity, the purpose of stay and the duration are decisive for this, whether a business visa, a work visa or other special permits are required.

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Important Hints

The consequences in case of infringement may include entry bans and associated loss of revenue, sanctions, fines and reputation damage.

Permanent Establishment

Employees working abroad can establish a permanent establishment through their activities in the target country and thus trigger a chain of financial and administrative consequences for companies.

Important Hints

The consequences of a violation may vary depending on the situation, but each establishment entails a significant administrative burden. In addition to registration, profit allocation and filing of the corporate income tax return, income tax obligations usually also arise.

Wichtige Hinweise

Important Hints