Quick answer
- 1. Start from the gross salary in the contract.
- 2. Withhold CAS (pension) 25% and CASS (health) 10% from the gross.
- 3. Compute the taxable base: gross minus CAS, CASS and the personal deduction.
- 4. Apply the 10% income tax on the taxable base.
- 5. Net = gross minus CAS, CASS and tax; roughly 57-58% of gross for an average salary.
What the law says
- CAS (pension contribution) = 25% of gross salary, borne by the employee.
- CASS (health contribution) = 10% of gross salary, borne by the employee.
- Income tax = 10%, applied after deducting CAS, CASS and the personal deduction.
- The personal deduction lowers the taxable base based on income and dependents.
- The employer withholds and pays these amounts and files Declaration 112 monthly.
Practical examples
- Example: on a gross salary of 5,000 lei about 1,250 lei CAS and 500 lei CASS are withheld, leaving a net of roughly 2,900-3,000 lei after tax.
- Example: on a gross of 8,000 lei the withholdings (CAS+CASS+tax) reach ~3,400 lei, so the net is around 4,600 lei.
- Example: the personal deduction for one dependent lowers the taxable base by a few hundred lei and slightly raises the net.
Common mistakes
- Applying the 10% tax directly on the gross without first subtracting CAS, CASS and the personal deduction.
- Confusing CAM (2.25%, paid by the employer) with a withholding from the employee's salary.
- Ignoring the personal deduction and computing a lower net than the real one.
- Using outdated rates after they change mid-year.
How 4softhr helps
- 4softhr prepares the pre-payroll data (days worked, absences, bonuses) the net-from-gross calculation relies on.
- It automatically computes days, bonuses and leave per employee as a starting point for payroll.
- It generates clear payslips that separate gross, withholdings and net.
- It exports data for the accountant or for Declaration 112.
- It integrates with 4conta from the 4b2b ecosystem for the tax and accounting calculation.
