Employer of Record (EOR) in Romania

An EOR in Romania allows businesses to enter the market quickly and help maintain compliance with local laws, all while reducing the overhead costs of establishing a local entity. Atlas HXM offers a seamless EOR service that handles all aspects of employment from payroll processing to compliant administration.

Partner with Atlas HXM for a cost-effective, compliant solution to hire and manage your workforce in Romania.

Talk to an Expert

Country InsightsRomaniaEmployer of Record

Quick Overview of EOR in Romania

Expanding into Romania doesn't have to mean drowning in paperwork or hefty setup costs. With an Employer of Record (EOR), you can bypass the complexities of local regulations and quickly hire employees, all while maintaining compliance with Romania's labor laws. From payroll processing and tax compliance to benefits management, an EOR takes care of the legal nitty-gritty like social security contributions, so you can focus on growing your business without the need to set up a costly local entity.

The EOR model offers a low-risk, cost-effective alternative to setting up a subsidiary. Establishing a local entity in Romania can cost anywhere from USD 2,600 to USD 7,800 (EUR 2,000 to EUR 6,000) plus the cost of maintaining human resources (HR), legal assistance, accountants and more. It can also become highly administrative. By partnering with an EOR, you can avoid these setup costs and enter the market faster, avoiding the overhead of a physical office. This is especially beneficial for startups, SMEs, and businesses testing new markets, who need to act quickly and comply with complex local regulations.

Disclaimer: The contents of this article is not legal advice and should be used for reference only. If in doubt, please seek independent legal advice from a lawyer in the relevant jurisdiction.

What You'll Learn

  • Looking to hire in Romania without the hassle and administrative burden of setting up a local entity? An EOR helps you onboard employees while maintaining compliance with payroll and local labor laws.

  • With a Direct EOR, you gain control, faster onboarding, and stronger compliance. It is ideal for businesses aiming to scale quickly.

  • On the other hand, an Indirect EOR may be more cost-effective but comes with slower processes and added complexity.

  • EOR service fees typically range from USD 260 to USD 1,040 (EUR 200 to EUR 800) per employee per month.

  • Atlas HXM offers a robust Direct EOR solution, providing smooth market entry, compliance, and seamless employee management: all in one platform.

How an EOR Works

At Atlas HXM, we provide EOR services that ensure your business remains compliant with Romania's labor laws while you focus on growing your operations, free from administrative and legal burdens.

Candidate Selection

Atlas HXM does not recruit candidates, but will check the employment setup for compliance around new hires like validating right-to-work, reviewing contract terms against Romanian rules, and configuring payroll and statutory obligations correctly. EOR providers in Romania, including Atlas HXM, can assist with work permit applications for foreign nationals. Anyone hired via EOR must either already hold valid work authorization or go through the proper work permit application process.

Employment Contracts

Atlas HXM drafts and administers employment contracts in compliance with Romanian Labor Code. In the contract, we clearly outline all required terms to reduce risk of future disputes, such as:

  • Job title and responsibilities

  • Salary, benefits, and working hours

  • Leave entitlements and notice periods

Payroll & Benefits Management

Payroll is processed in Romanian lei (RON), including:

  • Accurate tax withholdings and social security contributions

  • Statutory benefits such as health insurance and pension contributions

The EOR also helps maintain compliance with mandatory benefits, so employees are protected under Romania's laws.

Ongoing HR Support

Provides HR support, including: Leave management, employee relations and regulatory updates throughout the employee's tenure. This allows businesses to focus on core operations, while Atlas HXM handles ongoing compliance.

Costs & Pricing

EOR services in Romania are typically billed as a platform/service fee in the range of USD 260–1,040 (EUR 200–800 / RON 1,200–4,800) per employee per month. This fee covers administration such as compliant contracts, payroll processing, statutory filings, and HR administration for workers. This service fee is separate from the employee's salary, benefits, taxes, and permit-related costs, which vary by role and jurisdiction. By using an EOR, companies avoid the cost and overhead of setting up a Romanian entity, which can require USD 2,600–7,800 (EUR 2,000–6,000) upfront before any operational spend.

Explore Our Clear Pricing Plans 

What to Choose: EOR vs PEO

EOR

Employer of Record

An EOR becomes the legal employer for your talent in a country where you do not have an entity. The EOR handles compliant contracts, payroll, statutory benefits, tax filings, and labour-law adherence. You still direct the employee's work. This model suits companies expanding into Romania without wanting to form a local entity or take on compliance risk.

PEO

Professional Employer Organization

A PEO provides outsourced HR services like payroll, benefits, HR admin, but only when you already have a local entity. You remain the legal employer, and the PEO shares administrative tasks without taking on employer liability. This model is suitable when you are already established in the country and are only looking to offload HR administration.

What’s Best for You?

Choose an EOR when you want to hire in Romania without setting up an entity and want a partner who can take on contracts, payroll and compliance. Choose a PEO when you already operate locally and just want HR support.

Work Life in Romania

Romania's employment framework is designed to balance operational needs with employee protections. Here's what you need to know:

Employment Types:

  • Permanent: Individual work contracts concluded for indefinite term with full statutory benefits.

  • Fixed-Term: Contracts for a definite term (maximum 18 months) for specific projects or temporary needs.

  • Probation Periods: Trial periods can be established: 90 days for executive positions, 120 days for management positions and 30 days for disabled persons. The EOR ensures that all probation terms comply with Romanian Labor Code requirements.

Working Hours & Overtime: In Romania, the standard workweek is 40 hours (8 hours per day), with a maximum of 48 hours including overtime. For employees under 18, working time is limited to 30 hours per week (6 hours per day). Overtime is compensated with time off within 90 days after it is performed, or if compensation through paid time off is not possible within this period, additional pay of at least 75% of basic wages. The EOR ensures all working time regulations are properly managed.

Leave Entitlements

Leave Type

Eligibility / Duration

Payment / Notes

Annual Leave

Minimum 20 days; additional 3 days for dangerous/harmful conditions

Paid by employer; holiday allowance paid 5 days before leave

Maternity Leave

126 days (63 before, 63 after delivery)

85% of average wages paid by National Health Insurance Fund

Paternity Leave

10 days (5 additional days with childcare certificate)

Full salary paid by employer

Sick Leave

Maximum 183 days in 12 months

75% of wages; employer pays first 5 days, then National Health Insurance Fund

Public Holidays

All statutory holidays

Double pay if required to work; handled by Atlas HXM

Payroll & Benefits: The minimum wage is RON 4,050 monthly (RON 24.496 per hour) as of January 2025. Atlas HXM manages payroll in RON, social security contributions, statutory benefits, bonuses, and supplemental benefits like meal vouchers and private health insurance.

Atlas HXM can help you manage these aspects and can help ensure that employees are supported and compliant with Romania's labor laws while businesses can focus on operations without administrative burdens.

More Reading

10 Best Employers of Record in Romania in 2026

Blogs11 Feb 2026

How the New Minimum Wage in Romania Works: Payroll Frequency and Bonuses

Blogs18 Jul 2024

What to Choose: Indirect vs Direct EOR

Direct EOR

The EOR owns the legal entities in the target country, coordinating all employment-related tasks directly. It offers faster onboarding, better compliance, and more control.

Best for: Businesses looking to scale quickly, expand long-term, or enter Romania with compliance.

Indirect EOR

The EOR provider acts as an intermediary between the business and a third-party local entity. While it can be cheaper, it may result in delays and compliance complexity.

Best for: Small teams or short-term hires with less urgent compliance needs.

What’s Best for You?

  • For Small Teams or Contractors: Indirect EOR could work, especially for temporary hires or testing a market.

  • For Scaling and Compliance: Direct EOR is the best choice. With Atlas HXM, you'll have control, faster entry, and streamlined compliance.

Taxes & Compliance

Romania operates on a calendar-year tax system. Employers must remit personal income tax withholdings and social security contributions monthly by the 25th of the following month. Annual personal income tax returns are due by May 25th, and employers must provide annual tax certificates to employees by January 31st.

Category

Details

Employer Payroll Tax

Social security contributions for employees in difficult/hazardous conditions Work accident insurance and other mandatory contributions Rates vary based on workplace risk classifications

Employee Payroll Tax

Personal income tax: flat 10% rate on employment income Social security contributions: approximately 35% of gross salary Dividend income: 5% tax rate; Interest income: 10% tax rate

Pension System

Contribution-based system with state and mandatory private components Retirement age: 65 for both genders (women transitioning by 2035) Minimum 15 years contributions; full benefits require 35 years Employees under 35 contribute to mandatory individual accounts

VAT & EOR Costs: Romania applies VAT at 19% standard rate, with reduced rates of 5% and 9% for specific goods and services. EOR services may be subject to Romanian VAT depending on the service structure and provider location. Businesses may claim VAT credits if registered and meeting requirements.

Atlas HXM handles tax compliance, including income tax calculations, social security contributions, annual filings, and expatriate tax coordination, ensuring businesses remain compliant with local laws while minimizing administrative burden.

Termination

Employees dismissed for medical/professional unfitness or business reasons are entitled to at least 20 working days notice. No notice is required during probationary periods. Severance pay is not mandatory except in collective dismissal situations, where amounts are determined by collective agreements or individual contracts. The EOR ensures proper handling of terminations, including notice periods, final wages, and required documentation.

5 Things to Look for in an EOR Provider in Romania

  1. Local expertise and knowledge of Romanian Labor Code, social security contributions, and regulatory requirements.

  2. Advanced technology for payroll, reporting, and HR system integration.

  3. Experience in your industry and handling work permit management for foreign nationals.

  4. Strong compliance track record and relationships with Romanian authorities and legal advisors.

  5. Global presence to support multi-country expansion, with verified security and compliance standards (ISO 27001/27017/27018, GDPR).

Speak to an Expert

atlas logo

Atlas HXM provides direct EOR services, managing payroll, compliance and benefits efficiently. Our unified platform automates HR, payroll, and compliance tasks, while offering premium employee support, global benefits, and access to 9,000+ learning courses. Recognized by Everest Group PEAK Matrix 2025 and NelsonHall NEAT Assessment 2025, Atlas HXM combines compliance, technology, and global expertise.

See Our Clear Pricing Plans 

FAQs

How quickly can I hire employees in Romania through an EOR?

You can typically hire Romanian employees within 1-2 weeks, depending on role complexity and visa requirements. The EOR handles administrative setup while you focus on candidate selection.

What are the main costs associated with using an EOR in Romania?

EOR costs typically range from EUR 200-800 per employee per month, plus salary and associated taxes/benefits. This compares favorably to establishing a local entity.

Can an EOR help with work permits for international employees?

Yes, experienced EOR providers offer comprehensive immigration support, including work permit applications and visa processing with Romanian authorities.

What is the minimum wage in Romania?

The minimum wage is RON 4,050 monthly (RON 24.496 per hour) as of January 2025 for full-time employees.

What are the standard working hours in Romania?

Standard working time is 8 hours per day and 40 hours per week, with a maximum of 48 hours including overtime.

How does an EOR ensure compliance with Romanian employment law?

EOR providers maintain specialized teams that monitor Romanian labor law changes, ensure compliant employment practices, and handle regulatory reporting and documentation.

         

CareersAbout UsAnalyst Reviews & ReportsPartner with Atlas HXMPricing

How We Help

Global Hiring & ExpansionConsulting & SupportMergers & AcquisitionsCountry ComplianceEmployee BenefitsTalent OnboardingExpense Management

Who We Help

Financial ServicesTechnologyLife Science & PharmaNon-Profit & NGOEnergy, Oil & GasPrivate Equity & VCStartup & Growing

Resources & Tools

Global Salary CalculatorGlobal Employee Cost CalculatorCountry InsightsCase StudiesReports & WhitepapersEvents & WebinarsBlog

©2026 Atlas Technology Solutions, Inc.

Cookie PolicyPrivacy NoticeTerms & Conditions

For People, By People