Contribution transfer lowers salaries, ups bonuses in Romania’s private sector

The bonuses received by employees in the private sector went up by 68% in the first three months of this year compared to the same period of 2017 while the salaries went down by 13%.

The evolutions were determined by the fiscal changes and the transfer of all social contributions from employers to employees starting January this year, according to HR services firm Smartree.

The change was adopted by emergency ordinance at the end of last year, but the Parliament hasn’t yet voted on it. Thus, some companies didn’t increase the gross salaries of their employees to compensate for the social contribution transfer, as they feared the changes would be reversed. Instead, they granted bonuses to compensate for the drop in net salaries.

Local companies continued to hire more in the first quarter of this year. The number of people hired in the first quarter was 11% higher than in the same period of 2017, according to Smartree.

The Smartree Workforce Index is based on data from over 200 local companies with a combined turnover of over EUR 2.5 billion.

Biggest employers in Romania: private & state companies share the top

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