The Real Cost of Hiring an Employee in Romania in 2026: Salaries, Social Contributions and Taxes
08/2026
- Camelia Topscov
Hiring an employee in Romania almost always raises the same question: how much will this employee cost each month? Answering that question requires considering all components of employment costs. The gross salary is only one part of the equation. The employer’s mandatory Work Insurance Contribution, together with employee benefits in many cases, make up the total employment cost. This article explains each of these elements based on the legislation applicable in 2026.
1. The Gross Minimum Wage in 2026
The statutory minimum wage changed during 2026.
- 1 January – 30 June 2026: the gross minimum monthly wage is RON 4,050, resulting in an approximate net salary of RON 2,574.
- 1 July – 31 December 2026: under Government Decision No. 146/2026, the gross minimum monthly wage increases to RON 4,325, representing a 6.8% increase. The corresponding net salary is approximately RON 2,699.
Effective 1 July 2026, Government Emergency Ordinance No. 89/2025 reduces the non-taxable amount applicable to the national minimum wage from RON 300 to RON 200 per month. This tax relief applies to employees whose gross base salary is equal to the national gross minimum wage and whose total monthly gross employment income does not exceed RON 4,600. The change has a direct impact on the net salary received by employees who meet these conditions.
In the construction sector, the statutory minimum wage remains RON 4,582 gross. The tax incentives previously available to this sector were abolished in 2025.
For the agriculture and food industry sectors, the separate sector-specific minimum wage is abolished as of July 2026, and employers are required to apply the general national minimum wage.
2. Employee Contributions Withheld from Salary
The employer is responsible for calculating, withholding and remitting the following mandatory deductions:
- Social Security Contribution (CAS): 25%
- Health Insurance Contribution (CASS): 10%
- Personal Income Tax: 10%
Together, these deductions represent approximately 41.5% of the employee’s gross salary.
3. Employer Contribution
For employees working under normal working conditions, employers are required to pay the Work Insurance Contribution (CAM) at a rate of 2.25% of the gross salary.
4. Examples of the Total Employment Cost
Gross Minimum Wage – RON 4,325
Non-taxable amount – RON 200
- Social Security Contribution (CAS): RON 1,031
- Health Insurance Contribution (CASS): RON 413
- Personal tax allowance: RON 865
- Taxable income: RON 1,816
- Personal income tax: RON 182
- Net salary: RON 2,699
- Work Insurance Contribution (CAM): RON 93
- Total employer cost: RON 4,418 per month
Gross salary – RON 10,000
- Social Security Contribution (CAS): RON 2,500
- Health Insurance Contribution (CASS): RON 1,000
- Taxable income: RON 6,500
- Personal Income Tax: RON 650
- Net salary: RON 5,850
- Work Insurance Contribution (CAM): RON 225
- Total employer cost: RON 10,225 per month
5. Employee Benefits
Compensation packages increasingly include employee benefits. Meal vouchers, private medical subscriptions, voluntary private pension contributions and flexible benefits are commonly offered by employers to attract and retain talent.
These benefits increase the overall employment cost but, in many cases, benefit from a more favourable tax treatment than granting the same amount as salary. They also contribute to higher employee satisfaction and help strengthen the employer brand.
6. Costs That Are Often Overlooked
The total cost of employing someone extends beyond salary and mandatory contributions. Employers should also budget for paid annual leave, sick leave paid in accordance with Romanian legislation, recruitment and onboarding costs, work equipment, software licences and payroll administration.
Meeting tax compliance and reporting obligations also requires time and resources. Depending on the circumstances, employers may also incur costs related to notice periods or severance payments upon termination of employment.
7. How BPiON Simplifies Hiring in Romania
BPiON Romania supports local and international companies with payroll calculations and personnel administration, ensuring that these processes are managed in full compliance with Romanian legislation.
We administer the payroll process, calculate salaries, social security contributions and payroll taxes, prepare and submit the required statutory declarations, and provide ongoing support to help clients meet their legal obligations and keep pace with legislative changes.
Whether your company is expanding its workforce in Romania or looking to outsource payroll and personnel administration, BPiON provides reliable support to ensure these activities are managed efficiently and in full compliance with the applicable legal requirements.
If you don’t want to be lost in the maze of hiring employee in Romania,
