CAS, CASS and income tax
Almost all social contributions in Romania are paid by the employee: 25% CAS for the public pension and 10% CASS for health insurance, both on gross salary without a ceiling. Income tax is a flat 10% of what remains after contributions and the personal deduction. Above the range of the personal deduction, take-home pay is 58.5% of gross: 7,000 lei gross leaves 4,095 lei.
The personal deduction
Employees earning up to 2,000 lei above the minimum wage get a personal deduction (deducere personală), a tax-free amount set as a share of the minimum wage: 20% without dependants, 25% with one, 30% with two, 35% with three and 45% with four or more. The share falls by half a percentage point for every 50 lei of salary above the minimum wage and reaches zero for someone without dependants at 6,325 lei gross. On top of that, people under 26 within the same salary range get a further 15% of the minimum wage, and each child under 18 enrolled in school adds 100 lei for one parent, at any salary.
Examples
On the minimum wage of 4,325 lei: CAS is 1,081 lei, CASS 433 lei and the personal deduction 865 lei, so income tax is 195 lei and take-home pay 2,616 lei. Under 26 the extra deduction lowers the tax to 130 lei, for 2,681 lei. On 4,325 lei with two dependants who are both in school, take-home pay is 2,680 lei.
Net pay at different salaries
| Gross a month | Net a month | Deductions |
|---|---|---|
| 4,325 lei | 2,616 lei | 39.5% |
| 5,000 lei | 2,981 lei | 40.4% |
| 6,000 lei | 3,523 lei | 41.3% |
| 7,000 lei | 4,095 lei | 41.5% |
| 8,000 lei | 4,680 lei | 41.5% |
| 10,000 lei | 5,850 lei | 41.5% |
| 15,000 lei | 8,775 lei | 41.5% |
Without dependants, at the minimum wage in force from July 2026.
What this leaves out
In 2025 employees on the minimum wage had 300 lei a month free of tax and contributions; the Fiscal Code limits that facility to 2025, so it is not applied here. Sector exemptions (IT, construction, agriculture and food industry in past years), meal vouchers, private pension and health insurance deductions, part-time minimum contribution rules and second jobs are not included. Your employer pays a 2.25% work insurance contribution on top of your gross salary.