Understanding Your Romanian Salary: Gross vs. Net Pay

Published: June 21, 2025

Whether you're new to the Romanian job market or just want to better understand your payslip, the difference between gross salary (salariu brut) and net salary (salariu net) is fundamental. The number in your employment contract is often the gross amount, but the money that hits your bank account is the net. Let's break down where the money goes.

What is Gross Salary?

Your gross salary is the total amount of money your employer agrees to pay you before any taxes or social contributions are deducted. This is the top-line figure you see in your employment contract (contract individual de muncă).

The Key Deductions

In Romania, there are three main contributions deducted directly from your gross salary. As of early 2025, the rates are:

• Pension Contribution (CAS - Contribuția de Asigurări Sociale): This is a mandatory contribution to the state pension system. The standard rate is 25% of your gross salary.
• Health Insurance Contribution (CASS - Contribuția de Asigurări Sociale de Sănătate): This funds the public healthcare system. The rate is 10% of your gross salary.
• Income Tax (Impozit pe Venit): After the CAS and CASS are deducted, the remaining amount is subject to a flat income tax rate of 10%. There are some personal deductions that can apply, but this is the general rule.

Putting It All Together: An Example

Let's say your gross salary is 5,000 RON.

1. CAS (25%): 5,000 * 0.25 = 1,250 RON
2. CASS (10%): 5,000 * 0.10 = 500 RON
3. Taxable Income: 5,000 - 1,250 - 500 = 3,250 RON
4. Income Tax (10%): 3,250 * 0.10 = 325 RON
5. Net Salary (Take-Home Pay): 5,000 - 1,250 - 500 - 325 = 2,925 RON

As you can see, the total deductions add up significantly. Understanding this breakdown is key to effective financial planning.