Salary Calculator
Romania
The Native Teams payroll calculator makes it easy to calculate salaries and understand associated costs across different countries. It helps you estimate the expenses of hiring employees in various regions and receive a detailed breakdown of both gross and net income.
The tool also offers valuable insights into tax obligations, health contributions, and pension costs specific to your selected country.
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How does the salary calculator for Romania work?
The salary calculator for Romania estimates both gross and net income by considering various factors. It begins with the gross salary, which includes base pay, bonuses, and any additional agreed-upon compensation. Then, Romania’s flat tax rate is applied.
The calculator also accounts for social security contributions from both the employee and employer, covering essential areas such as pensions and healthcare. After factoring in all taxes and contributions, the calculator provides the net salary, which is the actual amount the employee takes home.
What is the salary cost in Romania?
In Romania, both employers and employees are required to make contributions to various social security and health insurance funds. Employers are responsible for contributing to several mandatory schemes, including the pension fund (25% of the gross salary), health insurance (10% of the gross salary), unemployment insurance (2.25%), and work accident insurance (0.15% to 0.85%, depending on the job's risk level).
Employees also have their own contributions deducted from their gross salary. These include social security contributions (25% of the gross salary) and health insurance (10% of the gross salary). These contributions help fund Romania’s pension, healthcare, and social security systems, ensuring that both employers and employees contribute to the welfare of the workforce.
How much tax do you pay in Romania?
Romania applies a flat income tax rate of 10% on most types of personal income, including wages, salaries, and other income such as rental or freelance earnings. This means that all individuals, regardless of their income level, are taxed at the same rate.
*Please note that these rates can vary based on legislative changes.
What are the mandatory employee benefits in Romania?
Employees in Romania are entitled to sick leave with compensation. The length of sick leave varies based on the type of illness, but employees are entitled to a minimum of 5 days of paid sick leave per year. The compensation during sick leave is typically 75% of the employee’s gross salary, paid by the employer for the first 5 days, and then by the state through the social security system for the following days.
When it comes to vacation days, employees receive 20 days of paid annual leave per year based on a standard full-time work schedule.
Female employees are entitled to 126 days (around 18 weeks) of maternity leave, which can be taken before and after childbirth. Leave is paid 85% of the average gross income for the last 6 months prior to taking leave.
In addition, fathers are entitled to 5 days of paid paternity leave, which can be taken within the first 8 weeks after the birth of the child. Fathers may also be entitled to an extended leave of up to 10 days under specific conditions, particularly if they attend a parental education program.
Parents can also take childcare leave of up to 2 years (or 3 years for children with disabilities), during which they receive a monthly allowance of 85% of their average monthly income, up to a certain limit.
Are there any other benefits or additional expenses?
In addition to the mandatory salary costs and employee benefits, employers in Romania may incur other expenses related to employment. For instance, some employers offer private health insurance, training and development, meal vouchers, transportation allowance, and more.
What is the difference between Gross and Nett in the Romania Salary Calculator?
In Romania, understanding the difference between gross and net salary is essential when using a salary calculator. Gross salary represents the total amount an employee earns before any deductions. This includes base pay, bonuses, allowances, and any other forms of compensation. It is the figure commonly used by employers when advertising salary packages.
Net salary, on the other hand, is the amount the employee takes home after all deductions are made. These deductions typically include personal income tax and social security contributions, which cover pensions, health insurance, and unemployment insurance. While employers contribute to some of these costs, employees are also responsible for a percentage of their gross salary.
How can Native Teams help with employment, salary and taxes in Romania?
At Native Teams, we offer comprehensive solutions to simplify employment, payroll, and tax management in Romania. Our platform provides a range of tools and services that optimise payroll operations while ensuring compliance with Romanian regulations. We support both employers and employees with salary calculations, tax administration, and benefits management. With our services, you can ensure timely and accurate salary payments, minimise administrative burdens, and be confident that all legal obligations are met efficiently.
