Romania Social Contributions Guide 2026

CAS — Social Pension Contribution (Employee: 25%)

The CAS (Contribuția de Asigurări Sociale) is the employee's pension contribution, set at 25% of gross salary. This funds the Pillar I (PAYG state pension system). The contribution is calculated on gross employment income, capped at 12 times the average gross salary (for 2026, approximately RON 36,000-40,000 per month). The cap means high earners do not contribute on earnings above this ceiling. Since the 2018 tax reform shifted most social contributions from employer to employee, the headline gross salary increased but net salary remained similar. The 25% CAS rate is among the highest in the EU for employee pension contributions.

CASS — Health Insurance Contribution (Employee: 10%)

The CASS (Contribuția de Asigurări Sociale de Sănătate) is the employee's health insurance contribution, set at 10% of gross salary. This funds Romania's public healthcare system. The contribution entitles employees to publicly funded healthcare services, including medical treatment, hospitalization, and prescription drugs. Self-employed individuals also pay CASS at 10% on their declared income (subject to minimum thresholds). Since 2018, the employer's CAM (health fund) contribution was reduced to 0% — the full health contribution is now borne by the employee.

FCLS — Work Insurance Fund (Employer: 2.25%)

Employers pay FCLS (Fondul de garantare pentru plata creanțelor salariale) at 2.25% of gross salary. This fund covers: unemployment insurance, workplace accident insurance, salary guarantee fund, and the fund for stimulating employment. Unlike the employee-borne CAS and CASS, the FCLS is the sole employer social contribution (since the 2018 reform eliminated most other employer contributions). The FCLS is calculated on total gross payroll and paid monthly by the employer.

CAM — Health Fund Contribution (Employer: 0%)

The employer's CAM (Contribuția Asiguratorie pentru Muncă) health fund contribution was set to 0% after the 2018 tax reform (previously 5.2%). The health contribution was effectively transferred to the employee as part of the 10% CASS rate. However, the CAM rate can be changed through the annual Budget Law — it has been kept at 0% in recent years but could be reinstated in future budgets. The CAM is distinct from the CASS and covers work-related health risks and occupational diseases.

Self-Employed Contributions

Self-employed individuals (PFA — Persoană Fizică Autorizată) and independent contractors must pay: CAS at 25% on declared income (optional for those below minimum threshold, mandatory if exceeding 12 times the average gross salary), CASS at 10% on declared income (mandatory if annual income exceeds 6 times the minimum wage — approximately RON 19,800 for 2026), and FCLS at 2.25% (optional for self-employed, mandatory only if they register for unemployment insurance). The declared income for contribution purposes is the net income after deducting allowable business expenses. Minimum contribution bases apply if income falls below certain thresholds.

Total Combined Contribution

The total social contribution burden in Romania is: Employee: 35% (CAS 25% + CASS 10%) plus Employer: 2.25% (FCLS), for a total combined of approximately 37.25% of gross salary. This is moderate by European standards. The employee's 35% share is deducted from gross salary, while the employer's 2.25% is paid on top of gross salary. Since the 2018 reform shifted contributions from employer to employee, the effective labor cost structure changed significantly, increasing reported gross salaries while reducing employer-side costs.

FAQs

Are social contributions capped in Romania?

Yes. CAS (pension) has a monthly cap of 12 times the average gross salary (approximately RON 36,000-40,000 for 2026). CASS (health) has a minimum contribution threshold but no upper cap. The FCLS (employer) has no cap — it applies to the full gross salary.

Can self-employed individuals opt out of contributions?

Self-employed individuals earning below certain thresholds may opt out of CAS (pension) contributions, but CASS (health) is mandatory if annual income exceeds 6 times the minimum wage. Below that threshold, health contributions are voluntary.

What are the penalties for late payment of contributions?

Late payment of social contributions attracts interest at the ANAF reference rate plus penalties of 0.01% per day of delay. Employers who fail to deduct and remit employee contributions face additional sanctions including fines and criminal prosecution for persistent non-compliance.

Disclaimer

This guide provides general information about Romania social contributions for 2026. Rates and thresholds are subject to change through the annual Budget Law. Always consult with a qualified professional in Romania for advice specific to your situation. InvestmentKit does not provide tax advice.