Romania: Pay and benefits

Original and updating authors: Nestor Nestor Diculescu Kingston Peterson (Gabriela Dinu, Roxana Abrasu and Daniel Stancescu)

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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. (See Equal pay)
• There is a statutory national minimum wage applicable to all employees. (See Minimum wage)
• The pension system consists of four "pillars", which are the public social security pension scheme, mandatory employee contributions to an individual account with a private pension scheme, voluntary private pensions and voluntary occupational 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. (See Sick pay)
• In addition to the employee's regular pay, employers may offer employees various benefits in kind. (See Benefits in kind)