Living and Working in Romania

Tax & Social Security in Romania  In Romania the income taxes is unique in amount of 16 %  The social insurance system covers: unemployment, health, pension and accident insurance  The income tax is calculated on the basis of gross wages less compulsory social security contributions and deductible costs Contributions for social insurances Rate Financed by employeremployee Pensions insurance fund 31.3%20.8%10.5% Unemployment insurance fund 1.25%0.75%0.50% Health insurance fund 10.7%5.2%5.5% Sick leaves 0.85%0.85%- Accident (work injury) insurance fund from 0.15% to 0.85% - TOTAL 44.25% % 27.75% % 16.5%

 Tax & Social Security in Romania  The social security contributions are calculated as percent of the gross salary.  The employer deducts insurance contributions from gross salary of the employee and pays them to the Revenue Office (consolidated state budget found).  The employee as tax-payer must submit a tax declaration to the local Revenue Office that covers the income of the previous year only if he had in the last year other revenues (rents, etc) except income from wages.  The employer has the role of dealing with the local authorities on behalf of the employee, to withheld from the employee the wage taxes and insurances and to register him to the local social security authorities.

Employment contracts An employment contract is required by law.  Individual employment contracts are registered with the Employees’ General Register at the Office of the Labour Inspectorate. An employer is under an obligation to provide employees with a copy of their employment contract (registered with the Local Labour Inspectorate to which the employing company belongs), signed by both parties.  The national gross minimum wage is established by government decision upon consultation with trade union and employer association representatives. The national gross minimum wage as of 1 January 2009 is RON (approximately EUR 140).  Employers are under an obligation to inform their employees with respect to the guaranteed national gross minimum wage. Employers must pay their employees wages that are not lower than the guaranteed national gross minimum wage.  In Romania, all employees and employers are required to pay contributions to the social insurance budget, the health fund, the unemployment fund and the state budget.

Social security and insurance E-forms The authorities that issue E forms in Romania are:  The National Agency for Sicial Benefits – is in charge with issuing the following E forms: E 401, E 402, E 403, E 404, E 405, E 406, E 407, and E 411  The National House of Pensions and Other Social Insurance Rights (NHPOSSR) – is in charge of issuing the following E forms: E 100, E 102, E 103  The National Employment Agency (NEA) is in charge of issuing the following E forms: E 300, E 301, E 302 and E 303 (01, 2, 3, 4, 5)  The National Health Insurance House (NHIH) is in charge of issuing the following E forms: E 104, E 105, E 106, E 107, E 108, E 109, E 110, E 112, E 115,E 116, E 117, E 118, E 120, E 121, E 123, E 124, E 125, E 126 and E 127.

Accommodation I  Accommodation in Romania differs significantly between the capital city and the provinces. Single-family houses are common in villages and small towns, whereas blocks of flats and  To get accommodation, one can buy a new dwelling or a second-hand dwelling, or rent. Real estate providers can be classified into owners and builders (developers).  The most convenient way is to purchase real estate from a developer (for instance, you can buy a 110 m2 house with a garden for around EUR ). housing estates are more frequent in big cities.  In order to make informed choices, you should seek professional advice from real estate agencies, which are best placed to offer you relevant suggestions and services.