As a member of the European Union (EU) with a growing economy, Romania is an excellent location for a company to expand its operations to Europe. While the country's incorporation process is...
Read MoreAs a member of the European Union (EU) with a growing economy, Romania is an excellent location for a company to expand its operations to Europe. While the country's incorporation process is relatively straightforward, you'll still need to handle hiring employees, setting up payroll, and doling out compensation and benefits.
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As a member of the European Union (EU) with a growing economy, Romania is an excellent location for a company to expand its operations to Europe. While the country’s incorporation process is relatively straightforward, you’ll still need to handle hiring employees, setting up payroll, and doling out compensation and benefits.
Globalization Partners can help. Our Employer of Record service is a unique solution that allows us to use our established PEO to run your business. We’ll hire employees on your behalf, add them to our compliant payroll, and manage all risk so that you don’t have to.
Employers must contribute different percentages of employees’ salaries as part of Romania payroll laws. For example, employers must typically pay 4% of an employee’s salary to the state social security fund, while 2.25% will go to Romania’s work insurance.
Employees must also make tax contributions to the funds listed above. They contribute 25% of their salary to social security and 10% to health insurance.
Companies have four main options for setting up their Romania payroll. Since every business is different, it’s best to carefully consider each possibility to determine which is best for your company or industry. These include:
Before you set up your Romania payroll, you will have to incorporate your subsidiary. To do this, you’ll need registered capital, management, registered offices, assets, a Romania bank account, and the names of directors and shareholders. All businesses must register with the country’s National Office of the Trade Register and the Labor Chamber.
Alternatively, you can choose a subsidiary alternative like Globalization Partners, which allows you to skip this lengthy process.
Probationary periods up to 30 or 90 days are popular in Romania, so keep this in mind when drafting an employment contract. As an employer, you’ll need to provide at least 20 working days of notice in case of a termination. However, these terms could differ if the employee is still in their probationary period.
If you need a Romania payroll processing company, choose Globalization Partners. Contact us today for more information on our Romania payroll outsourcing services.
If you’re ready to grow your business, or you have questions about a specific country, complete the form. One of our experts will be in touch shortly.
