RO firms kept pay rise promises in 2020, but 2021 expectations are more conservative

Gross wages in Romanian private companies increased by an average of 6.79% in the first half of this year (H1), and the annual growth will remain the same until the end of the year, according to PwC Romania's PayWell 2020 salary study.

The average wage increase is expected to ease to 4.68% in 2021.

The salary increase reported for 2020 is in line with the intentions expressed by companies that participated in last year's edition of the PayWell study.

The highest average salary increase in 2020, of 9.87%, was in the retail sector, followed by the banking sector with 7.39%.

The wages in the pharma sector rose below average, by 4.17%.

"Salary increases in the first half of this year took place against the background of good performances in 2019. The trend seems to be continuing, but not at the same pace, as most companies are preparing more conservative budgets for 2021 due to the global economic uncertainty generated by the current pandemic," explained Ionut Simion, PwC Romania Country Managing Partner.

"In the current situation, organizations need to remain sustainable in the long term, so cost reductions are inevitable. The adjustments differ depending on the industry, market position, and each company's resilience, but it is increasingly likely that the economic situation will remain difficult next year," he added.

To reduce costs since the COVID-19 pandemic outbreak, 49% of the companies surveyed implemented work from home policies, 29% worked in shifts, 5% reduced working time, and 5% implemented furloughs.

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