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Salary Calculator – Net Salary Calculator – Gross Salary Calculator
With the help of the salary calculator, you can see what is the net salary from the gross salary or the gross salary from the net salary. In addition, the taxes and social contributions paid by the employer and employee are highlighted.
Gross Salary. Net Salary
The gross salary represents the expenses that an employer has with each employee and which include the employee’s remuneration, i.e. the net salary (the in-hand salary), but also the taxes and fees owed by the employee to the state, respectively
Social Security – 25%
Social Health Insurance – 10%
Income tax – 10%
The employer manages the payment of these taxes on behalf of the employee, paying in addition 2.25%, the work insurance contribution (CAM), which is, however, included in the gross salary.
The net salary is obtained after the above-mentioned taxes and fees are deducted from the gross salary and represents the remuneration the employee receives for the services rendered.
According to Law 227/2015 on the Tax Code, the Tax Code as subsequently amended and supplemented, meal vouchers will be taxed according to the rules of wage taxation, but will be exempted from the payment of mandatory social contributions. The salary tax rate is 10% and applies according to the algorithm provided by the Fiscal Code, art. 78, par.(2), lett. a).
Thus: “at the place where the basic function is located, by applying the 10% share on the calculation base determined as the difference between the net income from wages calculated by deducting from the gross income the mandatory social contributions related to a month, due according to the law in Romania or according to the international legal instruments to which Romania is a party, as well as, as the case may be, the individual contribution to the state budget due according to the law, and the following:
(i) personal deduction granted for the respective month;
(ii) the union contribution paid during that month;
(iii) contributions to voluntary pension funds according to Law no. 204/2006, as subsequently amended and supplemented, and those to voluntary pension schemes, qualified as such in accordance with the legislation on voluntary pensions by the Financial Supervisory Authority, managed by authorized entities established in the Member States of the European Union or belonging to the European Economic Area, borne by employees so that at the level of the year the equivalent in Ron of the amount of EUR 400 is not exceeded;
(iv) the voluntary health insurance premiums, as well as the medical services provided in the form of a subscription, borne by the employees, so that at the level of the year the equivalent in Ron of the amount of EUR 400 is not exceeded. The insurance contract, respectively the subscription, covers medical services provided to the employee and/ or to any dependent person, as defined in art. 77, para. (3);”
Therefore, the employer is exempt from any tax and state contribution when it offers this type of benefit to employees. But the entities paying salaries and/or income assimilated to them are obliged to calculate and withhold the tax related to the income of each month when the payments of these remunerations are made.
The tax related to the income from vouchers is added to the rest of the salary tax that the employer withholds and is transferred to the state budget until the 25th of the following month in which the payments will be made.
The salary calculator is an application that helps people who want to quickly calculate their salaries, from gross to net, from net to gross. This computer is up-to-date and complies with the latest applicable rules of the Tax Code.
In each of the pages, there is an advanced computer. It allows you to add further information, such as deductions, and the value of food vouchers.
According to the Fiscal Code, when calculating the amount to be paid for a certain contribution, its value is rounded to the leu.
This calculator can estimate the salary fees for general cases and cannot replace the payroll specialist. Understanding the payroll and how it should work is essential for any organization. The results are indicative and we disclaim any responsibility for any accounting errors arising from their use.