Inflation digs into Romanians’ wages, which shrink by real 6.5% y/y in May
The average net wage in Romania increased by 3.5% y/y to RON 5,843 (EUR 1,117) in April, insufficient to keep pace with the consumer prices that rose three times faster (+10.7% y/y), according to data published by the statistics office INS. The average net wage thus contracted by 6.5% in real terms, marking the steepest decline in the past decade.
In public administration and education, where the wages are paid predominantly from the general government, the real average wages contracted by over 13% y/y – twice as fast as the average. In healthcare and social assistance, where the private sector has emerged, the real average net wage contracted by only 9.2% y/y.
In all these predominantly budgetary sectors, the wages are close to the economy-wide average (above average in public administration and below average in healthcare).
In the core manufacturing industries, the average net wage contracted by only 4.4% y/y in real terms, while some sectors posted positive performances, notably the tobacco processing (+15% y/y in real terms), where the wages are already twice the economy-wide average. The highest wages are paid in the sectors of IT and specialised financial services (insurance, pension funds), where the earnings are, on average, also more than twice the national average.
In a broader perspective, however, the sharp contraction in Romanians’ real incomes seen since last July is correcting an unsustainable advance in 2024. Compared to April 2023, the average net wage was still 4.1% higher, in real terms, in April 2026. This is a meagre advance, yet in line with the sluggish economic growth over the past three years.
Furthermore, the dynamics of the average wage might hide diverging performances of the high versus low incomes that are very likely, given the regressive impact of both the income correction and the inflationary impact.
iulian@romania-insider.com
(Photo source: Aaron Amat/Dreamstime.com)