Wages in Romania up real 7.3% y/y in October

The average net wage in Romania increased by 12.3% y/y to RON 5,268 (EUR 1,059) in October, amid a 7.3% y/y growth in real terms, according to data published by the statistics office INS. The average gross wage was RON 8,612 (EUR 1,733).

In euros, the average net wage in Romania increased by 12.1% y/y as of October.

The real annual advance is softer but not far from the 7.5% and 8.7% rates in the second and third quarters of the year.

The impact of the higher wage incomes on private consumption became visible in September-October when the retail sales volume increased by double-digit rates and the non-food sales by rates of around 19% y/y.

In its latest macro update on Romania, Erste Research expects private consumption to grow by only 2.4% y/y in 2025 and 2.2% in 2025, compared to 5.5% in 2024. The Austrian financial group projects that stronger overall economic growth will be driven by investments (fixed capital formation) instead.

The latest major wage hike in Romania’s budgetary sector took place in March, and meanwhile, the overall average wage remained more or less steady in real terms.

The base effects may, however, result in robust growth rates for the real wages in Q4 (even in the absence of nominal wage hikes) and in the first quarter of 2025. The companies will be more cautious at the end of 2024, with further wage hikes at the end of 2024 amid high economic uncertainty.

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