Romania Pay Equity Overview

Overview

Romania is actively strengthening its legal framework concerning pay equity and transparency, primarily driven by its commitment to align with European Union standards. This evolution builds upon existing labor laws and anti-discrimination legislation, with significant upcoming changes aimed at fully transposing the EU Pay Transparency Directive (2023/970). The country's approach is rooted in the fundamental principle of equal pay for equal work or work of equal value, aiming to eliminate discrimination, particularly gender-based, in remuneration. This framework seeks to ensure that compensation practices are fair, non-discriminatory, and increasingly transparent, moving towards a more accountable and equitable labor market.

Key Legislation

Several key legislative acts underpin Romania's pay equity and transparency landscape, forming a robust foundation that is continuously being updated:

Romania Labour Code 2003 (Law No. 53/2003): This foundational law prohibits both direct and indirect discrimination in remuneration and other employment aspects. It mandates equal pay for equal work or work of equal value, establishing a core principle for fair compensation across all sectors.
Romania Equal Opportunities Law (2002) (Law no. 202/2002): This law specifically addresses gender equality and prohibits sex-based discrimination across various aspects of public life, including employment. It defines concepts such as direct and indirect discrimination, harassment, and sexual harassment, and explicitly includes "equal pay for equal work" as a component of equal opportunities.
Romania Labour Code Amendments 2022 (Law no. 283/2022): These amendments, transposing EU Directives on transparent working conditions and work-life balance, enhance employee rights and mandate greater transparency in employment contracts. This includes the obligation to expressly and separately specify the basic salary and all its components, such as allowances and other benefits, providing a clearer picture of total remuneration.
Romania Employee Records Register (2017) (Government Decision No. 905/2017): While not directly a pay equity law, this regulation requires employers to maintain detailed electronic records of employees' individual employment contracts, including gross monthly salary. This data serves as a crucial basis for labor market oversight and can be utilized in assessing pay disparities, providing a factual foundation for compliance checks.
Romania GDPR Implementation Law (2018) (Law no. 190/2018): This law aligns Romania's data privacy framework with the EU's GDPR. It sets stringent rules for the collection, storage, processing, and protection of all employee personal data, including remuneration information. This indirectly affects pay data management and enforcement remedies by ensuring that sensitive pay information is handled securely and lawfully.
Romania Pay Transparency Draft Law (2026): This draft law, aiming to transpose EU Directive 2023/970, proposes significant changes that will fundamentally reshape pay transparency in Romania. Key provisions include:
- Pay range disclosure: Employers will be required to provide information about the initial pay or its range in job advertisements or in writing before the recruitment interview.
- Ban on salary history inquiries: Employers will be prohibited from asking job applicants about their past salary history, aiming to prevent the perpetuation of historical pay discrimination.
- Right to information: Employees will have the right to request and receive information on their individual pay level and the average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value. The draft law shortens the response deadline for employers to 30 working days, compared to the Directive's two months.
- Gender pay gap reporting: Employers with 100 or more employees will be mandated to report on their gender pay gap. This reporting will be annual for companies with 250+ employees (starting June 7, 2027) and triennial for those with 150-249 employees (starting June 7, 2027) and 100-149 employees (starting June 7, 2031).
- Joint pay assessment: If an unjustified gender pay gap of 5% or more is identified within a category of workers and persists for six months, employers must conduct a joint pay assessment in collaboration with worker representatives.
- Remediation of unjustified pay gaps: The draft law introduces a 90-working-day deadline for employers to remedy unjustified pay differences, extendable by a maximum of six months in justified circumstances.

Employer Obligations

For HR professionals and compliance teams in Romania, understanding and adhering to employer obligations is paramount. These responsibilities are evolving, with significant new duties on the horizon:

Ensure Equal Pay: Employers must ensure equal pay for equal work or work of equal value, prohibiting both direct and indirect discrimination in remuneration based on gender or other protected characteristics, as mandated by the Labour Code and Equal Opportunities Law.
Transparent Employment Contracts: Provide clear and detailed information in employment contracts, specifically outlining the basic salary and all its components, allowances, and other benefits, as per the Labour Code Amendments 2022.
Maintain Employee Records: Accurately maintain detailed electronic records of employees' individual employment contracts, including gross monthly salary, in the General Register of Employee Records (REVISAL/REGES) as required by Government Decision No. 905/2017.
GDPR Compliance for Pay Data: Handle all employee personal data, including remuneration information, in strict compliance with the GDPR Implementation Law, ensuring lawful collection, storage, processing, and protection.
(Upcoming) Pre-Employment Pay Transparency: Once the Pay Transparency Draft Law is enacted, employers will be required to:
- Disclose the initial pay or its range in job advertisements or in writing before the recruitment interview.
- Refrain from inquiring about job applicants' past salary history.
(Upcoming) Respond to Employee Pay Information Requests: Establish a process to respond to employee requests for information on their individual pay level and average pay levels, broken down by sex, for comparable roles, within the stipulated 30 working days.
(Upcoming) Gender Pay Gap Reporting: For employers meeting the employee thresholds (100+ employees), prepare and submit regular gender pay gap reports according to the specified timelines (annual for 250+, triennial for 100-249).
(Upcoming) Conduct Joint Pay Assessments: If gender pay gaps of 5% or more are identified and persist without objective justification, employers must conduct a joint pay assessment in cooperation with worker representatives.
(Upcoming) Remedy Unjustified Pay Gaps: Actively work to remedy any unjustified pay differences within 90 working days, with a possible extension of up to six months under justified circumstances.

Employee Rights

Employees in Romania are afforded a growing set of rights designed to promote fairness and transparency in remuneration. These rights empower individuals to challenge discrimination and seek equitable treatment:

Right to Equal Pay: Employees have the fundamental right to equal pay for equal work or work of equal value, free from discrimination based on gender or any other protected characteristic. This is enshrined in the Labour Code and Equal Opportunities Law.
Right to Transparent Contract Information: Employees are entitled to receive clear and comprehensive information in their employment contracts regarding their basic salary and all its constituent components, allowances, and benefits.
Right to Data Protection: Employees have the right to have their personal data, including sensitive remuneration information, handled in accordance with GDPR principles, ensuring privacy, security, and lawful processing.
(Upcoming) Right to Pre-Employment Pay Information: Job applicants will have the right to receive information about the initial pay or its range for a position before or during the recruitment process.
(Upcoming) Protection from Salary History Inquiries: Job applicants will be protected from employers inquiring about their past salary history, preventing the perpetuation of historical pay discrimination.
(Upcoming) Right to Pay Information: Employees will have the right to request and receive information regarding their individual pay level and the average pay levels, broken down by sex, for categories of workers performing the same work or work of equal value. Employers must respond within 30 working days.
Right to Lodge Complaints: Employees can lodge complaints with the Labour Inspectorate or the National Council for Combating Discrimination (CNCD) if they suspect pay discrimination.
Right to Judicial Redress: Individuals can pursue legal action in courts to claim damages or seek remedies for pay discrimination. In cases of gender pay discrimination, the burden of proof can shift to the employer if the employee establishes facts that make it reasonable to presume discrimination has occurred.
(Upcoming) Right to Full Compensation: Victims of pay discrimination will be entitled to full compensation, including full recovery of back pay and related bonuses or payments, as well as compensation for lost opportunities and non-material damage.

Enforcement and Penalties

The enforcement of pay equity and transparency laws in Romania involves several key bodies, with significant penalties for non-compliance designed to be effective, proportionate, and dissuasive:

Labour Inspectorate (Inspecția Muncii): This body is responsible for supervising and controlling the application of labor legislation, including provisions related to remuneration and non-discrimination. They conduct inspections, investigate complaints, and can impose administrative sanctions for non-compliance.
National Council for Combating Discrimination (CNCD): As an autonomous administrative authority, the CNCD investigates complaints of discrimination, including pay discrimination. It can impose administrative fines ranging from 1,000 RON to 30,000 RON for individuals and 2,000 RON to 100,000 RON for legal entities found guilty of discrimination. The upcoming draft law also allows employees to request pay information through the CNCD.
National Agency for Equal Opportunities between Women and Men (ANES): ANES is designated as a body responsible for monitoring the application of the equal pay principle and overseeing pay transparency reports and obligations, playing a crucial role in the new framework.
Judicial System: Individuals can pursue legal action in courts to claim damages or seek remedies for pay discrimination. The legal framework facilitates this by allowing the burden of proof to shift to the employer if an employee presents facts suggesting discrimination.
Penalties for Non-Compliance:
- Existing laws allow for administrative fines imposed by the Labour Inspectorate and CNCD.
- The upcoming Pay Transparency Draft Law introduces specific administrative fines for non-compliance with its provisions:
  - RON 10,000 to 20,000 (approx. EUR 2,000 to 4,000) for first-time violations.
  - RON 20,000 to 30,000 (approx. EUR 4,000 to 6,000) for repeated violations.
- Beyond fines, the Directive requires that victims of pay discrimination receive full compensation, which can include back pay, related bonuses, and compensation for lost opportunities and non-material damage.

Recent Developments

The most significant recent development in Romania's pay equity landscape is the **Romania Pay Transparency Draft Law (2026)**. This draft law represents a direct and comprehensive response to the EU Directive 2023/970 on pay transparency, signaling a major shift towards a more proactive and transparent pay regime.

Transposition of EU Directive 2023/970: The primary goal of this draft law is to fully transpose the EU Pay Transparency Directive, which aims to strengthen the application of the principle of equal pay for equal work or work of equal value between men and women.
Public Consultation and Deadline: The draft law was published for public consultation on March 30, 2026, with the consultation period concluding on April 8, 2026. Romania is working towards the EU's transposition deadline of June 7, 2026.
Stricter Procedural Requirements: While largely mirroring the EU Directive, the Romanian draft introduces some stricter procedural requirements, such as a shorter 30-working-day deadline for employers to respond to employee information requests, compared to the Directive's two months.
Potential Delays: There is some uncertainty regarding the legislative process due to a recent change in government. This political transition may cause delays in meeting the June 7, 2026, transposition deadline, although the commitment to adopt the directive remains.
Paradigm Shift: The implementation of this draft law will introduce a paradigm shift in how pay information is managed and disclosed, moving Romania closer to a proactive pay transparency regime that empowers workers and holds employers more accountable for pay equity.

Practical Implications

For HR professionals and compliance teams operating in Romania, the evolving pay equity landscape, particularly with the impending Pay Transparency Draft Law, necessitates a proactive and strategic approach. The shift is from a reactive, complaint-driven system to one demanding proactive transparency and accountability.

Review and Audit Pay Structures: Conduct thorough internal pay audits to identify and address any existing pay disparities, especially those based on gender, before mandatory reporting or employee requests come into effect. Ensure that pay structures are based on objective, gender-neutral criteria.
Prepare for Pre-Employment Transparency: Update recruitment processes and job advertisement templates to include pay ranges. Train recruiters and hiring managers on the ban on salary history inquiries. This requires a fundamental change in how compensation is discussed during the hiring process.
Develop Internal Communication Protocols: Establish clear internal processes for handling employee requests for pay information. This includes defining who responds, what information is provided, and ensuring responses are timely (within 30 working days) and accurate.
Prepare for Gender Pay Gap Reporting: For companies with 100 or more employees, begin preparing for mandatory gender pay gap reporting. This involves collecting and analyzing relevant pay data, understanding the reporting metrics, and potentially engaging with internal stakeholders (e.g., finance, legal) to ensure accurate and compliant submissions.
Engage with Worker Representatives: Foster strong relationships with worker representatives, as their involvement will be crucial for joint pay assessments if significant, unjustified pay gaps are identified. Proactive engagement can facilitate smoother compliance processes.
Ensure Data Privacy Compliance: Re-evaluate how remuneration data is collected, stored, processed, and shared to ensure full compliance with the GDPR Implementation Law. The increased transparency requirements mean more sensitive data will be handled, necessitating robust data protection measures.
Train Management and HR Staff: Provide comprehensive training to HR teams, line managers, and senior leadership on the new legal requirements, their implications, and best practices for fostering a culture of pay equity and transparency.
Update Policies and Procedures: Revise internal policies, such as compensation policies, anti-discrimination policies, and grievance procedures, to reflect the new legal obligations and employee rights.
Seek Legal Counsel: Engage with legal experts specializing in labor law and data privacy to ensure full compliance, particularly given the complexities of transposing EU directives and the potential for new interpretations and enforcement actions.

By taking these steps, HR and compliance teams can navigate the evolving Romanian pay equity landscape effectively, mitigate risks, and contribute to a fairer and more transparent workplace.