Romania: Employee Benefits & Compensation

Starting July 1, 2026, Romania introduces a new calculation method for medical leave benefits that extend across multiple months. When sick leave crosses into a new month and exceeds the 7-day or 8-14 day thresholds, the resulting benefit differences will be included in the income of the month they are determined, rather than being declared retroactively.

The Pay Transparency Directive introduces new requirements for employers regarding pay confidentiality clauses while stopping short of mandating full disclosure of individual salaries. Employers must now prepare to justify pay differences using objective criteria and review their internal policies on pay confidentiality once the directive is transposed into national law.

Starting July 2026, employers must handle sick pay recalculations differently when employee illness spans multiple months and exceeds certain day thresholds. The new regulation eliminates retroactive declaration requirements and applies to both new cases and illnesses that began before the implementation date.

The maximum value for daily meal tickets that can be awarded to employees while benefiting from a special fiscal regime has been increased from 30 RON (approximately 6 EUR) to 35 RON...

The social and economic context of recent years and the development in technologies that allow more flexible business models, with employees working from everywhere, has resulted in a greater number of companies wanting to be present in the Romanian market.

Early 2023 is shedding light on how to implement the numerous changes to Romanian labour law that occurred during 2022.

The Romanian government is taking active measures to reduce the implementation of redundancies and support employers by bearing employee-related costs during the state of emergency declared via presidential decree on 16 March 2020.

Until February 2020, the Romanian legal framework regarding pensions followed the three-pillar model generally promoted by the World Bank.

After significant legislative updates and amendments in 2019, 2020 brings strong prospects for a series of projects, completing the...