Payroll & Workforce Management in Romania

What running payroll in Romania costs and requires

Romania applies a standard 16% corporate income tax rate, with a distinctive micro-company regime available to companies with annual revenue under €100,000 (reduced from €250,000 as of 2026) and at least one employee: qualifying companies pay just 1% of gross revenue instead of standard corporate tax. The minimum tax on turnover, applicable to large companies whose standard CIT liability falls below the turnover-based minimum, has been reduced to 0.5% for 2026, with the regime scheduled for repeal in 2027.

Operating in Romania requires coordination across a recently tightened fiscal environment — the micro-company revenue threshold has been cut by more than half, dividend tax has increased significantly, and minimum capital requirements have been reinstated, after a period of considerable flexibility.

What sits on top of gross salary

~2.25% of gross salary (unemployment) — employee withholding ~45% combined (pension, health, income tax) — this is a direct cost the employer budgets on top of gross pay for every hire, not a deduction from it.

• Dividend tax doubled to 16% — for distributions from 1 January 2026, affecting both individuals and legal entities receiving Romanian dividends
• Micro-company threshold halved — to €100,000 annual revenue (from €250,000), narrowing eligibility for the favourable 1% revenue-based regime
• Reinstated minimum share capital — for new SRLs — RON 500 from 2026, after a period with no effective minimum
• Mandatory Romanian bank account — within 60 business days of incorporation, with non-compliance triggering fiscal inactivity status and VAT code suspension

The statutory floor for Romania

€663/month gross (2026). Underpaying the statutory floor exposes the employer to fines and back-pay claims, and should be checked against any role before an offer is made — thresholds are typically revised annually.

Standard cycle and documentation

Payroll in Romania runs on a monthly cycle, in arrears. Payslips must itemize gross pay, statutory deductions, and net pay — incomplete or incorrect payslips are exactly what a labour or social security audit checks first, so the format is a compliance requirement, not a formality.

Employer obligations and deadlines

Annual accounts filed with the Trade Registry/tax authority within 150 days of year-end.

Employer registration runs through the Trade Registry (Registrul Comerțului), typically taking 3–10 business days.

Frequently asked questions