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Romania: Pay and benefits

Original and updating authors: Delia Paceagiu and Luminita Dima
Consultant editor: Raluca Dimitriu

Summary

  • The payment of remuneration by the employer to the employee is an essential element of the employment contract. (See General)
  • Wages must be paid at least once a month, in cash or by transfer into the employee's bank account. (See Payment of wages)
  • The employer has no automatic right to make deductions from an employee's pay, and such deductions can be made only where expressly provided for by the law. (See Deductions)
  • Pay discrimination on any of the protected statutory grounds is prohibited, and specific rules govern equal pay for women and men who perform equal work or work of equal value. (See Equal pay)
  • There is a statutory national minimum wage applicable to all employees. (See Minimum wage)
  • The pension system consists of three "pillars", which are the public social security pension scheme, mandatory employee contributions to an individual account with a private pension scheme, and voluntary private pensions. (See Pensions)
  • Income tax on employment income must be withheld by the employer at source. Employers and employees must pay contributions to the state social security system. (See Income tax and social security)
  • During sickness absence, employees are entitled to sickness benefit of 75% of average wages, generally for a maximum of 183 days per year, paid partly by the employer and partly by the state social security scheme. (See Pay for employees not at work)