Net wages in Romania up 13.7% year-on-year in March

The average net wage in Romania increased by 13.7% year-on-year to RON 3,075 (EUR 647) in March, also marking a significant 4.8% advance compared to the month before.

In real terms, (e.g. discounted for the consumer price inflation), the net wage increased by 9.3% year-on-year and by 4.3% month-on-month.

The net salary in Q1 advanced on average by 16.5% year-on-year (+12.4% in real terms), marking the steepest nominal increase in the past decade and one of the highest real growth rates.

Over the past 12 months, the wages in the budgetary sector increased by 18.9% (in education), 12.4% (public administration), and 9.1% (healthcare) in line with the Government’s promises. Employees in education, healthcare, and public administration received in March wages 10%, 20%, and 50% respectively above the economy-wide average.

The wage in constructions soared by 40% year-on-year as the sector was granted more fiscal allowances this year, but the average net salary in the sector (EUR 596 in March, net terms) still lags below the economy-wide average and is unlikely to convince workers to return from abroad. In manufacturing, the wages increased by only 11.3% year-on-year and lagged a significant 14% behind the average. This was, however, a significant 7% rise in real terms, enough to create additional labor cost problems to companies that have to adjust in terms of technology and range of products to cope with the workforce scarcity.

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