Quick answer
- 1. Total cost to the company = gross salary + work insurance contribution (CAM) of 2.25%.
- 2. CAM is the only tax on top of the gross salary borne by the employer.
- 3. From the gross, the employee bears CAS 25%, CASS 10% and 10% income tax.
- 4. The net the employee receives is roughly 57-58% of the gross salary.
- 5. The gap between total cost and net is the tax owed to the state.
What the law says
- The gross salary is the base for both the employee's withholdings and CAM.
- CAM (work insurance contribution) = 2.25% of gross, borne solely by the employer.
- The employee bears CAS 25% and CASS 10% of gross, plus 10% income tax on the taxable base.
- All these obligations are reported monthly through Declaration 112.
- Rates may be adjusted mid-year by legislation.
Practical examples
- Example: on a 5,000 lei gross salary, CAM is ~112 lei, so the company's total cost is about 5,112 lei.
- Example: out of the 5,000 lei gross, the employee receives a net of roughly 2,900-3,000 lei (≈58%).
- Example: on an 8,000 lei gross, total cost is ~8,180 lei, while the net is around 4,600 lei.
Common mistakes
- Confusing total employer cost with gross salary, forgetting the 2.25% CAM.
- Believing the employer pays CAS and CASS, when these are withheld from the employee's gross.
- Budgeting only the net and being surprised by the much higher real cost.
- Using outdated rates after mid-year changes.
How 4softhr helps
- 4softhr prepares the pre-payroll data (days worked, absences, bonuses) that the cost calculation relies on.
- It gives a clear view of cost per employee as a starting point for budgeting.
- It generates payslips that separate gross, employee withholdings and employer cost.
- It exports the monthly data for the accountant and for Declaration 112.
- It integrates with 4conta from the 4b2b ecosystem for the exact tax calculation of CAM and other taxes.
