Quick answer
- 1. From the salary, CAS 25%, CASS 10% and 10% income tax are withheld.
- 2. These three are borne by the employee and withheld by the employer.
- 3. Total tax on the employee's salary: roughly 41-43% of gross.
- 4. In addition, the employer pays CAM (work insurance contribution) of 2.25%.
- 5. CAM is not deducted from the employee's salary; it is an employer cost.
What the law says
- CAS (pension) = 25% of gross, borne by the employee.
- CASS (health) = 10% of gross, borne by the employee.
- Income tax = 10% on the taxable base, borne by the employee.
- CAM = 2.25% of gross, borne by the employer (on top of salary).
- All are reported monthly through Declaration 112.
Practical examples
- Example: on a 5,000 lei gross, the employee bears ~1,250 lei CAS, ~500 lei CASS and tax, while the employer also pays ~112 lei CAM.
- Example: at 6,000 lei gross, the employee's withholdings reach around 2,550 lei (CAS+CASS+tax).
- Example: the total employer cost at a 5,000 lei gross is roughly 5,112 lei (gross + CAM).
Common mistakes
- Treating CAM as a withholding from the employee's salary, though it is an employer cost.
- Applying the 10% tax on gross rather than on the taxable base.
- Forgetting to include CAM in the employee's cost budget.
- Using outdated rates after mid-year changes.
How 4softhr helps
- 4softhr prepares the pre-payroll data (days, bonuses, leave) for each employee.
- It gives a clear view of cost per employee as a starting point for budgeting.
- It generates payslips that separate employee withholdings from 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.
