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Also note that for IT-professionalst here is a special regulation enabling them, further to observing
certain requirements (e.g. appropriate studies graduated), to benefit from an exemption of the regular
16% income tax.
The labour contract has to be registered with the labour authorities (the Employees General Electronic
Register). It is wise to also sign a confidentiality agreement with your employees. Note that in
Romania the position that you can give an employee in your company is dependent on his/her
diplomas. Without the proper (and in Romania recognized) university degrees, you can have
difficulties in hiring for a specific position. Official position title on the contract has a meaning for the
Romanian authorities and some details, like length of standard probation period, are dependent of this.
Authorities require that all HR related documents are in Romanian (contracts, job descriptions,
evaluations, internal regulations). It is advisable to let a third party (for instance payroll partner) take
care of this.
You can also collaborate with someone such as a freelancer (“PFA” or another type of independent
entrepreneur). In that case the individual employment contract is replaced by a contractor agreement.
Please note that there are specific conditions for working with PFAs (they should for instance provide
own equipment and cannot work full time in your office).
In any case, make sure that all contracts and tax payments are well organized. Unfortunately, there are
cases on Romanian market, where companies pay employees (partially) outside the official channels to
avoid paying taxes and contributions. Although this practice is slowly decreasing, it is useful to know
that this illegal and unfair competition on the labour market does exist.
Common other benefits for employees:
Meal vouchers. For every day at work, most Romanians receive a meal voucher from their
employer of approx. 9 RON each.
Health insurance. Many companies have a collective insurance with a private health
insurance company.
Bonus. Often companies hand out small bonuses at Christmas or Easter and result-oriented
bonuses depending on position.
Retirement plan. Some companies offer this as extra benefits.
Tax benefits for certain branches. Check with your accountant. For instance employees
working in IT sector in some cases do not have to pay 16% income tax.
For work-related traveling abroad and in the country, you are obliged to pay a daily allowance
(“diurnă”). The Romanian Government published a list of the minimum payable daily allowances
(different per country) for work-related traveling abroad (HOTĂRÂRE Nr. 518 din 10 iulie 1995). The
maximum is 2.5 times the minimum, above which the amounts are considered non-deductible expenses
and included in the calculation of taxable income. The current minimum daily allowance for travel to
the Netherlands is 35 EUR a day. Travel insurance for the stay abroad is obligatory in certain countries.
The maximum period that a Romanian national may be requested by his/her employer to travel for
work-related purposes in the Netherlands (or any other EU country) is 60 calendar days in 12 months;
longer periods are possible but only with employee's approval.
3.3.4 Non-Romanians
Employment agreements with non-Romanians (i.e. foreign nationals) can be governed by the law
chosen by the parties, but only if the choice of law does not give less protection than Romanian law (as
the law of the country in which the employee habitually carries out his work, the employer's place of
business is situated, or the contract is most closely connected).
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Nearshoring to Romania, NRCC 2013
