Employment Cost Calculator for Romania
Calculate your complete hiring costs for Romania employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate | Base |
|---|---|---|
| Work Insurance Contribution | 2.25% | Gross monthly salary |
| Social Insurance Contribution (Pension) | 4-8% (for special/hard conditions) | Employee's income |
Filing & Compliance
- Consolidated monthly tax return (Form D112) must be filed electronically by the 25th of the month following the salary payment month.
- Payments for income tax and social contributions are due by the 25th of the month following the payroll period.
- Employers must register each employee in the Electronic Register of Employees ("REVISAL") before their official start date.
In Romania, employee tax deductions encompass mandatory social security contributions, income tax, and certain allowable deductions for specific expenses and personal circumstances.
Social Security Contributions
- Pension Insurance: 25% of gross salary.
- Health Insurance: 10% of gross salary.
- Exemption: A RON 300 deduction from the calculation base for these contributions applies to full-time employees earning between RON 4050 (minimum gross salary) and RON 4300. This is applicable as of 2025.
Income Tax
- Rate: 10% of the taxable income (gross income after social security contributions and other deductions).
- Deductions: Several categories of personal deductions based on the number of dependents decrease as gross salary increases. Deductions are only available for monthly income of up to RON 5300. Employees with disabilities might be fully exempt from income tax.
Other Deductible Expenses
- Voluntary Pension Funds: Contributions up to the RON equivalent of EUR 400 annually.
- Private Health Insurance: Premiums and subscriptions up to the RON equivalent of EUR 400 annually.
- Trade Union Fees: Monthly membership fees.
- Sports Facility Subscriptions: Up to the RON equivalent of EUR 100 annually.
- Charitable Donations: Up to 3.5% of annual income tax can be directed to charitable causes.
- Tax Incentives Removal (2025): Tax incentives like income tax exemptions or reduced contributions previously available to sectors like IT, construction, and agriculture are eliminated for income earned starting January 2025.
- Minimum Wages (2025): Minimum wage in the construction sector is set at RON 4,582, while the minimum wage for the food and agricultural sector is RON 4,050.
- Meal Vouchers/Food Allowance: Employees may receive these benefits, but they are factored into the calculation for the RON 4300 threshold for the RON 300 deduction. This is specific to 2025.
General Tax Information
- Taxation is based on worldwide income for Romanian tax residents, and on Romanian-sourced income for non-residents.
- Specific rules apply regarding reimbursements for travel expenses and utilities for teleworkers (up to RON 400 monthly).
