The immediate impact on cash flow and fiscal planning for retired self-employed individuals (PFA) stems from the calculation of social and health contributions, regulated by the Fiscal Code (art. 148 and 150) for 2026.
- Social Security Contribution (CAS) – Pension
According to art. 148 of the Fiscal Code, individuals earning income from independent activities (art. 137 para. 1 lit. b) and b1)) are generally obliged to pay CAS, calculated on a minimum base of 12 or 24 gross minimum wages, depending on income level.
Major exception: per art. 150 para. (1), retirees, regardless of pension type, are exempt from CAS for income derived from independent activities carried out as PFA. Therefore, a retired individual earning income as a PFA does not owe CAS, regardless of the amount.
- Health Insurance Contribution (CASS) – Health
CASS is calculated at 10% of the annual net income of the PFA, subject to minimum and maximum thresholds:
- Minimum: 6 gross minimum wages nationwide (24,300 lei for 2026)
- Maximum: 72 gross minimum wages nationwide (291,600 lei for 2026)
Calculation:
- Net income < 6 minimum wages (< 24,300 lei) → CASS calculated on 6 minimum wages: 10% × 24,300 = 2,430 lei annually
- Net income between 6 and 72 minimum wages (24,300 – 291,600 lei) → 10% of actual income
- Net income > 72 minimum wages (> 291,600 lei) → 10% × 291,600 = 29,160 lei annually
Important note: retirement status exempts the individual from CAS only; CASS remains payable on independent activity income.
- Practical Implications
For retired PFAs, social obligations are significantly reduced due to CAS exemption, lowering total fiscal burden and increasing liquidity for investments or current expenses. CASS remains mandatory and must be managed according to the annual minimum and maximum base. Filing the Single Declaration and paying contributions on time is essential to avoid penalties.
Strategically, retired PFAs should plan income to optimize CASS calculation, with any income above the maximum threshold not increasing the health contribution, ensuring predictable annual cash flow.