Salary Calculator 2025: The year 2025 brings important changes to Romanian tax legislation, making it essential to understand how salaries are calculated. From changes in the gross minimum wage to new contribution and tax rates, both employees and employers need to be aware of the regulations in order to comply with the law and avoid penalties. In this article, we will analyze in detail how to calculate your net salary in 2025, using an updated salary calculator.

Gross Minimum Wage in 2025

Conformable Government Decree 1505/2024, the gross minimum wage in the economy was increased to 4,050 lei monthly, representing an increase of 9,4% compared to the previous year, when it was 3,700 lei. This change applies to a full-time work schedule of 8 hours per day, 40 hours per week. The minimum hourly wage in 2025 is 24,496 lei for a monthly average of 165,334 hours.

This increase directly affects employee income and the costs incurred by companies, having a significant impact on the economy and personal budgets.

Legislative Changes and Mandatory Contributions

1. Social Contributions

Social contributions remain unchanged as a percentage, but their values increase proportionally to the gross salary:

  • CAS (Pension Contribution): 25% of gross salary.
  • CASS (Health Contribution): 10% of gross salary.
  • CAM (Labor Insurance Contribution): 2,25% of the gross salary, paid by the employer.

2. Income Tax

The tax rate for salary income remains at 10% from the tax base. This is calculated after deducting CAS and CASS contributions from the gross salary.

Example Calculation for Net Salary in 2025

Let's take the example of an employee who earns the minimum gross wage of 4,050 leiHere's how net salary is calculated:

  1. Calculation of social contributions:
    • CASE: 4,050 × 25% = 1,012.5 lei
    • CAS: 4.050 × 10% = 405 lei
  2. Determining the tax base:
    • Gross salary – CAS – CASS = 4,050 – 1,012.5 – 405 = 2,632.5 lei
  3. Income tax calculation:
    • 2,632.5 × 10% = 263.25 lei
  4. Determining net salary:
    • Gross salary – CAS – CASS – income tax = 4,050 – 1,012.5 – 405 – 263.25 = 2,369.25 lei

Thus, an employee with the minimum gross salary will receive a net salary of 2,369.25 lei.

Employer Costs in 2025

In addition to the gross salary, employers must take into account the CAM contribution (2.25%), which increases the total cost of an employee. For the gross minimum wage of 4,050 lei, the total cost borne by the employer is:

  • CAM: 4,050 × 2,25% = 91.13 lei
  • Total cost: 4.050 + 91,13 = 4,141.13 lei

This amount represents the employer's full expense for each employee paid the minimum wage.

Changes to Differential Minimum Wages

In 2025, differentiated minimum wages still apply for certain sectors, such as construction and IT.

  • Construction sector: The gross minimum wage is 4,582 lei, and employees no longer benefit from tax exemptions, which reduces their net salary.
  • IT sector: Employees in this sector continue to benefit from income tax exemption for gross salaries of up to 10,000 lei.

Using a Salary Calculator 2025

A updated salary calculator It is an indispensable tool for employees and employers, providing a clear picture of contributions and net salary. The functionalities of such a calculator include:

  1. Entering gross salary:
    • Allows automatic calculation of CAS, CASS, CAM and income tax.
  2. Simulating different scenarios:
    • You can enter different values for gross salary to see the impact on net salary and the employer's total cost.
  3. Detailed view:
    • It shows all taxes and contributions in detail, along with the net salary.

The Impact of the Minimum Wage Increase in 2025

  1. For employees:
    • Increasing the minimum wage brings higher incomes, but also proportionally higher taxes.
  2. For employers:
    • Total costs are increasing, which can affect companies' budgets, especially for SMEs.
  3. For economy:
    • Raising the minimum wage stimulates consumption, but may increase pressure on small and medium-sized businesses.

Sanctions for Non-Compliance with Legislation

Employers who fail to comply with the obligation to pay the minimum gross wage risk fines of between 3,000 and 5,000 lei for each affected employee, according to Labor Code.

How can Accounting One in Brașov help you?

Managing payroll and tax obligations can be complicated, especially with new regulations. The Team Accounting One offers you:

  • Accurate calculation of salaries: We use the latest methods and tools.
  • Personalized tax consulting: We help you optimize costs and comply with legislation.
  • Complete administration of tax obligations: We declare and manage taxes for you.

Contact us for professional accounting services!

Conclusion

In 2025, the calculation of net salary and tax contributions becomes more complex due to the increase in the minimum wage and legislative changes. With a updated salary calculator and the support of a team of experts, you can ensure that you comply with all legal requirements and optimize your budget.

If you have any questions or need support, Accounting One is here to help you!