Romania Per diem

A per diem is a fixed daily amount paid to employees to cover meals and incidental expenses during business travel.

Instead of submitting each receipt, employees receive a set allowance per day of their trip.

Per diem is non-taxable if it is compliant with thresholds defined by law.

Employees in Romania qualify for per diem if:

• They travel more than 5 km from their usual workplace, and
• The trip lasts more than 12 hours. (Only 50% of the per diem applies for shorter trips.)

The maximum delegation period is 60 calendar days per year, which can be extended for another 60 days with the employee’s consent, as stated in the Labor Code.

Private employers can define their own per diem rates. These need to be regulated and communicated through internal policies, collective labour agreements, or employment contracts.

To stay non-taxable, per diem payments must:

• Not exceed 2.5× the public sector rate;
• Stay within a monthly limit of three base salaries for the employee’s position.

According to Order 1235/2023, the public sector per diem is RON 23/day.

Private employers can therefore grant up to RON 57.50/day (2.5× the public rate) tax-free. Any excess is considered taxable income.

If accommodation isn’t provided, an additional allowance of RON 265/day may be granted.

When meals are included, 50% of the per diem must be deducted.

For travel abroad, the same rule applies: private employers can grant up to 2.5× the legal per diem for public sector employees tax-free. Amounts above that threshold are treated as taxable income.

The official daily rates by destination are listed in Government Decision no. 518/1995.

If accommodation isn’t provided, an additional allowance may be granted.

When meals are covered, 50% of the per diem must be deducted.

Most staff belong to Category I, as defined in the same decree.

Source: GD no. 518/1995