Although, in principle, the same types of taxes apply, there are some important differences between the taxation of self-employment income and employment income.

Self-employment income

  • Income tax – 10%
  • Social security contributions:
    • Pension contribution (CAS) – 25%
    • Health insurance contribution (CASS) – 10%

Social security contributions are due depending on the level of income earned.

  • Individuals deriving income from independent activities are liable to pay CAS in 2026 if their cumulative annual income is at least equal to 12 gross national minimum wages (RON 48,600). The annual calculation base for CAS is the income chosen by the individual, but it cannot be lower than:
    • 12 gross national minimum wages (RON 48,600), where the income earned is between 12 and 24 gross national minimum wages;
    • 24 gross national minimum wages (RON 97,200), where the income earned is at least equal to 24 gross national minimum wages.
  • As regards CASS in 2026, although the minimum threshold is six gross national minimum wages (RON 24,300), the obligation to pay CASS may arise even where income below this threshold is earned, subject to certain exceptions.

Self-employed individuals (PFA holders) owe CASS based on an annual calculation base equal to the annual net/gross income earned or the annual income norm (as adjusted, where applicable). The calculation base cannot exceed the equivalent of 72 gross national minimum wages (RON 291,600). Where the calculation base is lower than the equivalent of six gross national minimum wages, CASS is nevertheless due as if the income were equal to six gross national minimum wages; in practice, this results in an additional CASS amount being payable.

Employment income

  • Income tax – 10%
  • Social security contributions:
    • Pension contribution (CAS) – 25%
    • Health insurance contribution (CASS) – 10%

Employees are required to pay both CAS and CASS on salary income, regardless of the level of income earned.

  • Work insurance contribution (CAM) – 2.25% (borne exclusively by the employer).

Additionally, in the case of employment income, employees do not have any tax compliance obligations to fulfill in their own name. Although they are the persons who effectively owe the income tax, pension contributions (CAS) and health insurance contributions (CASS), the filing of the relevant tax return and the payment of these liabilities are carried out monthly by the employer on their behalf.

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