The difference between gross and net salary, which deductions apply and why two employees on the same gross can end up with a different net.
Translated from Romanian. This article covers Romanian labour and tax law; the Romanian version is canonical and is updated first.
One of the most common sources of confusion between an employee and an employer is the difference between gross salary and net salary. Employees often negotiate a “take-home” figure, while the contract records a larger amount. This is not a mistake: it is the gap between gross and net, and understanding it helps both sides.
Gross salary is the amount set in the individual employment contract, before any deductions. It is the basis for the contributions and income tax that the law requires.
Net salary is the amount the employee actually receives, after social contributions and income tax are subtracted from the gross. It is the money that lands in the account.
In other words: gross is the starting point, net is the result. Between the two sit the mandatory deductions.
Broadly speaking, three main categories are deducted from the gross salary:
The employer withholds these amounts from the salary and pays them to the state. This is why the “paper” figure (gross) is larger than the “in-hand” figure (net): the difference does not disappear, it goes to the state budget as contributions and tax.
It is worth noting that, on top of what is withheld from the employee’s salary, the employer also has an additional cost (the contribution owed by the employer). For this reason, the total cost of an employee to the company is higher than the gross salary in the contract.
It may seem surprising, but two people on exactly the same gross salary can receive different net amounts. The reasons relate to personal circumstances and to the allowances provided by law, for example:
That is exactly why calculating “off the top of your head” is risky: even if the gross is identical, the net result depends on several variables.
Calculating salaries by hand, especially for a team with different situations, is time-consuming and error-prone. A mistake in contributions or in a deduction propagates into the payroll and into the declarations sent to the state.
A payroll application applies the rules consistently for every employee, accounts for each person’s situation and reduces repetitive work. Workly calculates salaries according to the rules in Romania for 2026, lets you lock the month for financial control and offers an export to accounting.
If you want a quick estimate, you can also use the calculators below, but keep in mind that an indicative figure does not replace the official payroll, which accounts for all the details of each employee’s situation.
Gross is the amount in the contract, net is the amount in hand, and between them sit contributions and income tax. Different net amounts on the same gross are normal and come from each person’s personal circumstances. For the company, the safest approach is for this calculation to be automated and consistent, rather than done by hand, month after month.
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