Salary and Taxes
1Statutory Salary Deductions
- Three mandatory deductions are made from each employee's gross salary (Salariu Brut): 10% income tax, 25% pension contribution (CAS), and 10% health insurance contribution (CASS).
- These deductions are calculated by the employer and paid directly to the National Agency for Fiscal Administration (ANAF); the employee receives the net salary (Net).
2Employer Contributions
- In addition to employee deductions, the employer is obligated to pay a 2.25% work insurance contribution (CAM) on the gross salary, covering unemployment and workplace accidents.
- The net salary is typically around 57 to 60 percent of the gross salary.
- This must be verified based on current regulations and individual circumstances.
3Declaration Obligations
- The employer must electronically submit Declaration 112 (Declarația 112), detailing employee deductions and insurance, to ANAF on a monthly basis.
- This must be verified based on current regulations and individual circumstances.
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🤝If You Still Have Income From Iran: Good News on Double Taxation
If you have rental property, a family business, or freelance clients in Iran while being a Romanian tax resident, don't worry about double taxation: a real, active double-taxation avoidance treaty exists between Iran and Romania. It was signed October 3, 2001, ratified by Romania under Law 279/2002, and has been in force since January 1, 2008 — its official page is still live on the Romanian tax authority's (ANAF) website. The general principle of this kind of treaty is that your tax-residence country (here: Romania, if you spend over 183 days/year there or your center of vital interests is there) must credit or exempt tax already paid in the other country from your final bill — meaning you don't pay full tax twice on the same income.
Sources: official ANAF page for Iran (static.anaf.ro), consolidated lists at noulcodfiscal.ro and infofisc.ro. The precise article-by-article details of the treaty (e.g. exactly how it applies to each specific income type) are not covered on this page — consult a tax advisor specializing in international law for your specific case.
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Frequently Asked Questions
What is the difference between gross and net salary?
After mandatory tax and insurance deductions, the net salary you receive is typically around 57% to 60% of your gross contract salary.
Does the employee have to pay their taxes separately to the government?
No, separate payment is not required; all statutory deductions for employees are calculated, withheld, and paid directly to the tax authorities by the employer.
Does Pillar II increase my CAS contribution?
No. Pillar II is a carve-out within the same 25% CAS contribution redirected to a personal account, not an additional deduction.
If I still have income from Iran, will I be taxed in both Iran and Romania?
No, not fully. A double-taxation avoidance treaty between Iran and Romania has been in force since 2008 (Law 279/2002); your tax-residence country must credit or exempt tax already paid in the other country. Consult a specialized tax advisor for your specific case.
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This guide is part of the "Work & Employment" collection.
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