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Summary
Romania uses a 10% flat income tax combined with two mandatory social contributions: CAS (pension) at 25% and CASS (health) at 10%. The total employee deduction rate is high by European standards at 45% of gross salary, but the pension contribution (25%) builds towards a state pension entitlement. The personal deduction for low earners and the CAS cap on high earners are the main variables affecting take-home pay.
How it works
Your take-home pay is reduced by:
- CAS (Contributia de asigurari sociale) - pension contribution at 25%
- CASS (Contributia de asigurari sociale de sanatate) - health contribution at 10%
- Income tax - 10% on taxable income (gross minus CAS, CASS, and personal deduction)
The calculation order matters: CAS and CASS are deducted from gross first, then income tax is calculated on the reduced amount.
Income Tax Rate (2025)
| Income | Tax rate |
|---|---|
| All taxable income | 10% (flat) |
Taxable income = Gross salary - CAS - CASS - Personal deduction (if eligible).
Personal Deduction (Deducere personala)
Employees earning up to 2,000 RON/month gross receive a personal deduction that reduces taxable income. The deduction phases out between 2,001 and 3,600 RON/month and is zero above 3,600 RON/month. For a single person with no dependents at 2,000 RON/month, the deduction is approximately 690 RON/month.
At higher salaries (the example below), the personal deduction is zero.
Social Contributions
Employee contributions deducted from gross salary:
| Contribution | Rate | Cap |
|---|---|---|
| CAS (pension) | 25% | Capped at 24 x minimum gross wages = 1,166,400 RON/year (based on 48,600 RON/month x 24) |
| CASS (health) | 10% | No cap |
| Total | 35% |
CAS cap: The pension contribution is capped at 24 times the gross minimum wage. For 2025 with a minimum wage of 4,050 RON/month, the annual CAS cap base is approximately 1,166,400 RON (4,050 x 12 x 24). Above this, no additional CAS is due.
CASS has no cap and applies to the full gross salary.
The formula
Where
Worked example
80,000 RON gross annual salary (no personal deduction)
CAS pension contribution (25%)
= 20,000 RON
CASS health contribution (10%)
= 8,000 RON
Taxable income (gross - CAS - CASS)
= 52,000 RON
Income tax (10%)
= 5,200 RON
Total deductions
= 33,200 RON
Result
Take-home pay = 80,000 - 33,200 = 46,800 RON/year (3,900 RON/month)
Assumptions & limitations
- 2025 rates only - uses current tax year rates and thresholds
- Standard employment contract - does not model civil contracts, PFA (self-employed), or micro-enterprise taxation
- No personal deduction - the worked example uses a salary above the personal deduction threshold (3,600 RON/month). Lower earners benefit from this deduction
- Single taxpayer with no dependents - the personal deduction varies by number of dependents
- CAS cap - pension contributions stop once gross reaches the cap base of 1,166,400 RON/year; this only affects very high earners
- No additional deductions - does not model voluntary pension (Pillar III), private health insurance deduction, or other reliefs
- IT sector exemption not modelled - employees in qualifying IT roles are exempt from income tax (but still pay CAS and CASS)
- Construction/agriculture exemptions not modelled - certain sectors have reduced contribution rates