Social Security

Europe | US-Romania Social Security Agreement

Summary

The formalities of the US-Romania Social Security Agreement were concluded on 19 May 2026, with the long-standing agreement entering into force as of 1 September 2026.

The detail

On the 19th of May, the US embassy in Bucharest delivered the formal diplomatic notification confirming that the US had completed the necessary internal formalities for the US-Romania Totalisation Agreement to come into force as of 1 September 2026.

The agreement was originally signed on 23 March 2023, and its implementation imminent now that both sides are aligned.

The agreement has significant implications for workers, employers, and mobility programs between the two countries.

The new Social Security Agreement will allow the obtaining of Certificates of Coverage (CoC) to eliminate dual Social Security Contributions for employees from either country who are sent on temporary assignments to the other country.

The agreement confirms the following:

• Elimination of dual social security liabilities: Workers and employers will only be required to contribute to one system at a time, rather than both.
• Detached worker rule: Workers of either country temporarily assigned to the other country will be able to maintain their coverage under their home country Social Security system for periods up to (but not exceeding) 5 years, provided a CoC is obtained. An exceptions article allowing deviation from these provisions (e.g. extended coverage beyond 5 years) on a mutually agreed basis is also included.
• The agreement applies to individuals who work between the US and Romania, including employees and self-employed persons. Third country nationals are also covered as long as they are, or have been subject to the Social Security laws of either or both countries.
• Totalisation of contributions periods: Years works in either country (or subject to Social Security) can now be combined to derive pension entitlement on a pro-rata basis. This is particularly significant for shorter-term workers who may not have otherwise qualified for benefits in either country if they had not reached the minimum contribution requirements for state pension.
• Removal of payment restrictions: US Social Security benefits can now be paid to Romania nationals residing outside the U.S.

What is next

The U.S. and Romanian authorities still must take several administrative steps towards implementing the finalized agreement. Policies will need to be drafted and published, and CoC forms will need to be brought online and operationalized within a relatively short timeframe.

In the short term, companies and their global mobility functions should consider the following:

• Assess all active and future planned assignments between the US and Romania ahead of 1 September. It will be possible to implement single country affiliation as of the effective date.
• Undertake the necessary updates to assignment policy/letter wording to reflect the new agreement, as well as management of shadow payroll and cost projection models.

Please contact our team at Vialto to discuss the implications of the new agreement on your employee population as we move closer to the 1 September 2026 implementation date.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Alan McAllin
Director

Craig Smith
Senior Manager

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Vialto Partners (“Vialto”) refers to wholly owned subsidiaries of CD&R Galaxy UK OpCo Limited as well as the other members of the Vialto Partners global network. The information contained in this document is for general guidance on matters of interest only. Vialto is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information is provided “as is”, with no guarantee of completeness, accuracy, timeliness or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability and fitness for a particular purpose. In no event will Vialto, its related entities, or the agents or employees thereof be liable to you or anyone else for any decision made or action taken in reliance on the information in this document or for any consequential, special or similar damages, even if advised of the possibility of such damages.

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