Working in Romania you will obviously have to deal with and know something about taxes in Romania. We will focus on taxes as an employee and provide you with a short insight.
The minimum wage in Romania is currently set at € 275/month, the average income is around € 465/month. An expat earns an average salary of around € 1000/month.
When working for a Romanian company, your employer will take care of all social security and tax payments for you. To be able to pay these deductions you need a social security number. Usually your employer takes care of this for you upon your arrival.
Social security payments in 2017 are divided into:
10,5% – CAS = Individual Pension Fund
0,5% – CFS = Unemployment Fund
5,5% – Health Insurance
Total deduction: 16.5%
After the social security deduction a 16% monthly income tax deductions is effective.
Your employer takes care of all these payments.
Monthly Gross Income: RON 4500
-/- Social Security 16,5% = RON 745,50
Taxable Income: RON 3757,50
-/- Income Tax 16%: RON 601.20
Monthly Nett Income in your bank account: RON 3156.30
Find here a gross/nett calculator for your personal situation.
Added to this your employer also contributes for you to the pension fund, the health insurance, the unemployment fund and a holiday fund. Your employer takes care of all these payments.
The percentages for social securities and any amount in this article are changed yearly. As you might expect they increase each year. These percentages are related to the situation in 2017. The percentage for actual income tax will probably not change as this is a trivial factor to attract foreign investors. For accurate information ask your HR.