How to Use the Romanian Salary Calculator

A Romanian Salary Calculator is an online tool that allows employees and employers to estimate the net salary (take-home pay) from a given gross salary in Romania, after deducting taxes and mandatory contributions.

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Why This Calculator Matters

Romania uses a taxation system where employees’ salaries are subject to several mandatory deductions before the final net salary is paid. These include:

• Pension contribution (CAS – 25%)
• Health insurance contribution (CASS – 10%)
• Income tax (10%)

By using this calculator, you can quickly estimate your take-home pay without manually calculating percentages or worrying about mistakes.

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How to Use the Calculator

1. Enter your gross salary (RON):
   Input the total amount your employer offers before taxes.
2. Click “Calculate Net Salary”:
   The calculator will automatically compute:
   • Pension contribution (CAS – 25%)
   • Health contribution (CASS – 10%)
   • Income tax (10%)
   • Final net salary
3. View your salary breakdown:
   You will see exactly how much is deducted and what remains as your actual income.

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Example Calculation

• Gross Salary: 5000 RON
• Pension (CAS 25%): 1250 RON
• Health (CASS 10%): 500 RON
• Taxable income: 3250 RON
• Income Tax (10%): 325 RON
• Net Salary: 2925 RON

So, from a gross salary of 5000 RON, the take-home net salary is 2925 RON.

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Benefits of Using the Calculator

• Helps employees negotiate salaries with realistic expectations.
• Enables freelancers and contractors to plan budgets and expenses.
• Provides transparency on how much the state takes in taxes and contributions.
• Saves time compared to manual calculations.

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Romanian Salary Calculator FAQ

Q1: What is the difference between gross and net salary?
A: Gross salary is the total salary agreed with your employer before taxes. Net salary is what you actually take home after mandatory deductions.

Q2: Which contributions are deducted in Romania?
A: Employees' pay:

• CAS (pension contribution) – 25%
• CASS (health insurance) – 10%
• Income tax – 10% (applied to taxable income after contributions)

Q3: Does the calculator include employer contributions?
A: No, this version focuses on employee deductions only. Employers also pay certain contributions separately.

Q4: Are there salary exemptions in Romania?
A: Yes. Certain employees (e.g., IT professionals, researchers, construction workers) may benefit from income tax exemptions, reducing deductions.

Q5: Can this calculator be used for freelancers (PFA)?
A: Not directly, since freelancers have different rules for taxation and social contributions. A separate PFA calculator would be required.

Q6: Why do taxes feel so high?
A: Romania’s system shifts much of the tax burden onto employees through contributions, which can reduce the net salary significantly compared to gross.

Q7: Is this calculator legally accurate for payroll?
A: It’s a simplified estimation tool. For official payroll purposes, always rely on accounting software or a professional accountant.