Romania Salary Calculator

How Romania's tax system works

Romania applies a flat income tax rate of 10% on employment income, one of the lowest nominal rates in the EU. However, the effective burden is substantially higher due to heavy employee social contributions. The flat tax system, in place since 2005, provides simplicity and predictability, though total employee deductions reach 41-45% of gross salary.

The personal deduction (deducere personală) is approximately 510 RON per month for employees with no dependents, increasing by about 100 RON per dependent, but phases out entirely for gross salaries exceeding approximately 4,000 RON per month. Romania does not impose municipal surcharges, solidarity levies, or additional high-income taxes.

Income tax (2026)

Income type	Tax rate
Employment income (all levels)	10%

Income tax is calculated on gross salary minus employee social contributions (CAS + CASS). The personal deduction further reduces the taxable base for lower earners. All amounts are in Romanian leu (RON).

Employee social contributions

Contribution	Rate
CAS (pension insurance)	25%
CASS (health insurance)	10%
Total employee contributions	35%

Employer social contributions

Contribution	Rate
CAM (work insurance contribution)	2.25%
Total employer contributions	2.25%

Notable features of Romanian payroll

The most distinctive feature of Romanian payroll is the heavily employee-weighted contribution structure. Romania's 2018 reform shifted social contributions almost entirely from employers to employees, resulting in employee deductions of 41-45% of gross salary and net pay of roughly 55-59% of gross. On the employer side, the work insurance contribution (CAM) at just 2.25% is the lowest in the EU. This creates one of the smallest gaps between gross salary and total employer cost in the EU, making Romania extremely attractive from an employer cost perspective.

Meal vouchers (tichete de masă) of up to 40 RON per working day are widely expected as part of standard compensation in Romania. These vouchers are exempt from both income tax and social contributions for both employer and employee, making them one of the most tax-efficient benefits available. Holiday vouchers (vouchere de vacanță), gift vouchers up to 300 RON per occasion, and nursery vouchers provide additional tax-advantaged compensation options.

Despite the low nominal 10% income tax rate, the combined effect of the 25% pension contribution and 10% health contribution means Romanian employees face a total deduction burden comparable to many higher-tax EU countries. The key difference is that this burden falls overwhelmingly on the employee side rather than the employer side, creating an unusual dynamic where gross-to-net ratios are poor but employer costs above gross are minimal. For international companies, this means that while Romanian salaries may appear modest in gross terms, the total employer cost is very close to the gross figure -- typically just 102.25% of gross. Employers must submit monthly declarations through the ANAF (National Agency for Fiscal Administration) electronic system by the 25th of the following month.

Minimum wage in Romania (2026)

The statutory minimum gross wage in Romania is €814 per month as of 2026. This is the minimum amount employers must pay before taxes and social contributions are deducted. Use the calculator below to see what this translates to in net take-home pay.

Try the calculator

Enter a gross salary amount to see the net take-home pay, or switch to net-to-gross mode to find out what gross salary is needed for a specific net target. The calculator uses Romania's 2026 tax rates, social contribution rules, and applicable allowances.

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