Use the salary calculators below to estimate payroll taxes on different scenarios. Calculate the net or gross salary, contributions to social insurance, and determine the total salary cost. Our salary calculators are useful for both employers and employees, helping to understand how salary taxation works in Romania.
Just enter the amount of the monthly gross or net salary, as applicable, and the tool will automatically perform the calculations. Employers can use it to estimate the payment owed to an employee or the contractual gross salary, under different value scenarios and situations.
Calculate the net salary to be paid, after deducting the related taxes.
Calculate the gross salary, starting from the desired net amount.
Salary taxation in Romania can be a complex topic, especially for those unfamiliar with the country’s tax system. Romanian employees are subject to a flat income tax system, with specific personal deductions and social contributions that influence the final net salary received.
For example, the monthly gross salary includes all social contributions that an employee must pay to the state budget. These are the social security (or pension) contribution and the health insurance, both being deducted before calculating the income tax due on salary.
The gross salary refers to the total amount an employer agrees to pay to an employee, before any taxes or other deductions are applied. This figure includes mandatory social contributions such as social security contribution (CAS) and health insurance contribution (CASS), which are two important components of the Romanian social contributions system. On the other hand, the net salary is the actual amount employees take home after all these deductions are applied.
In Romania, the primary deductions due by an employee from gross salary include:
For example, if you’re earning a monthly gross salary of 5,000 RON, you can use our salary tax calculator to determine your net salary after all these deductions. Conversely, if you have a specific net salary in mind, the calculator can estimate the gross salary required to achieve it.
In addition to the taxes due by the employee (described above), the employer also has its own share of financial responsibility. It must contribute 2.25% of the monthly gross salary to the work insurance fund.
Whether you’re an employee negotiating a contract or an employer setting up payroll, understanding how salary taxation works is crucial for your personal or your company’s financial planning. Knowing the difference between the gross and net salaries and how taxes are applied in practice helps avoid surprises and also ensures compliance with legal requirements.
For salaries, the taxation and the monthly payroll process is structured and handled only by the employer. Employers are responsible for calculating, withholding and transferring taxes and social contributions directly to the state on behalf of their employees. While self-employed individuals (e.g., PFAs) have more control over their income, and must manage their own tax and contribution payments.
While employees have no flexibility to deduct work-related expenses, self-employed individuals can deduct certain business expenses (e.g., office costs, equipment, or transportation), reducing their annual taxable income. This flexibility may be an advantage, but it also comes with added administrative responsibilities. They must keep accurate financial records, filing annual tax returns, and ensuring timely tax payments.
The salary calculators above are intended to provide you with general guidance on calculating the salary for Romania. They apply the payroll tax calculation rules in accordance with the current Romanian fiscal provisions. However, the calculators do not take into account all the specific rules applicable to certain types of benefits and the related deductions (for example, personal deductions, tax exemptions specific to certain industries, etc.). Therefore, any of the salary calculators above should be used only for general information purposes.
Founded in 2008 as TAX IQ, our company has gained extensive expertise over the years, allowing us to effectively utilize our experience to benefit our clients’ best interests. Over time, we have succeeded to build a solid reputation as trusted tax advisor for the entire community of Romanian expats.
