Real wages in Romania up real 0.5% YoY in January

The average net wage in Romania increased by 8.9% in January 2022 compared to January 2021 (YoY), to RON 3,698 (EUR 748), the statistics office INS announced.

In real terms, the net wage increased by 0.5% YoY after four consecutive months when the annual dynamics remained in the negative area.

A significant increase of the net nominal salary took place in November (+2.8% MoM), and the seasonal advance in December (+6.8%) was stronger than that seen in December 29020 (+6.0%) and was only partly reversed in January (-4.7%).

This indicates a process of net wage adjustment to inflation, but it is unclear whether the companies will be able to absorb the higher inflation expected for this year. In other words, the net wage expressed in real terms is likely to be subject to significant erosion pressures exerted by inflation, of a magnitude that employers may not easily offset.

So far, the real net wage has remained more or less steady since the end of 2020 - after marked upward dynamics seen during the previous years.

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