PwC: Salaries up 4.1% for Romania’s private sector

Salaries in Romania’s private sector were up 4.1% on average this year, below the growth of 4.6% last year. Over half of the companies plan to increase salaries by around 4% in 2015, according to the PayWell study by PwC. The biggest salary increase in 2014 was in IT&C – 7%, and the lowest, in banking and retail, both with a 3.2% increase. “Despite the increase in the minimum wage, which was twice increased in the last 12 months, salaries in the private sector registered only a modest growth in 2014. On the other hand, the downward trend of the inflation rate reduced salary pressures”, stated Mihaela Mitroi, Tax and Legal Services Leader, PwC Romania. The study analyzed salary levels and remuneration policies for 166 companies in nine economic sectors. Of these companies, 86% have or intend to increase salaries this year, while the rest have not increased salaries or have not decided yet to do so. “As the European economic recovery seems still frail, while the regional geopolitical context is very uncertain, companies will show extra caution and keep a close watch on costs in the years to come. For 2015, 54% of the participating companies in the PayWell Romania study have budgeted salary increase rate of around 4%, similar to this year”, added Mihaela Mitroi. Half of the Romanian companies provide fix bonuses to all employees, in connection with the winter holydays, Easter and the summer season vacations. These bonuses are usually offered as fixed amounts, up to RON 2,250- some EUR 500. There are 4.6 million employees in Romania. editor@romania-insider.com