Is CAM included in the gross salary in the contract?

No — CAM (2.25%) is paid by the company separately, on top of the gross salary. It does not appear on the employee's payslip.

Is the minimum wage mandatory for all employees?

Yes, the gross salary cannot be below the national gross minimum wage in force — check the current value in the calculator or on the methodology page.

Are there personal deductions that raise the net pay?

Yes, depending on the number of dependants and the level of income — the calculation here is an estimate without personal deductions; for the exact figure, check with an accountant or a payroll service.

Hiring my first employee — what an employee really costs

The three numbers

Gross — the amount in the contract, the base for all contributions.
Net — what the employee receives: gross minus CAS 25%, CASS 10% and 10% income tax on what is left.
Total employer cost — gross plus CAM (the work insurance contribution) of 2.25%, paid separately by the company.

A quick example

With a gross salary of 5,000 RON/month: the net is about 2,925 RON and the total cost to the company is about 5,113 RON. The gap between what the company pays and what the employee takes home is almost 2,200 RON — it covers their pension, health cover and income tax, plus the company's CAM.

Frequently asked questions

Is CAM included in the gross salary in the contract?: No — CAM (2.25%) is paid by the company separately, on top of the gross salary. It does not appear on the employee's payslip.
Is the minimum wage mandatory for all employees?: Yes, the gross salary cannot be below the national gross minimum wage in force — check the current value in the calculator or on the methodology page.
Are there personal deductions that raise the net pay?: Yes, depending on the number of dependants and the level of income — the calculation here is an estimate without personal deductions; for the exact figure, check with an accountant or a payroll service.