PwC study: Lower salary growth in the private sector in Romania this year

The average salary growth rate in the private sector was of 4.6 percent in Romania this year, according to the 2013 edition of the PayWell salary and benefits study by the Human Resources consulting team of PwC Romania. The salary increase rate was lower than in 2012, when it was of 5.1 percent, but it marks the return to real growth figures, taking into consideration the lower inflation forecast for this year, of around 3 percent. According to the study, the below average increase of the nominal salary growth is seen across all economic sectors analyzed by PwC, except the IT&C sector. However, the sectors that reported a real average growth rate higher than inflation are auto manufacturing, industrial products, FMCG, distribution, IT&C, and pharmaceuticals, while banks and retailers have registered salary growth lower than inflation. The highest salary growth level of 4.9 percent was recorded for managers, followed by support stuff - 4.7 percent, and operational and sales staff - 4.5 percent. “In the past few years, the effective salary growth rates were significantly lower than those planned the year before and, for next year the trend continues: only 28 percent of the companies that took part in our PayWell study had already decided upon a salary growth policy, with the average salary planned at the lowest level from the last 5 years: only 5.2 percent. This reflects not only that inflation expectation is now firmly anchored at lower levels, but also that employers are maintaining a cautious attitude, being very careful at the overall economic growth and not willing to increase salary costs above the productivity gains”, said Horatiu Cocheci, Senior Manager, Human Resources Team Leader, PwC Romania. Over 50 percent of the companies that participated in the study are granting performance bonuses to managers, while one third offer such bonuses to operational and sales staff, according to the PayWell study. Only 28 percent of the participants grant fixed bonuses to all types of employees. This type of bonuses is usually granted in the industrial sectors that have such clauses in the collective labor agreements. “Fixed bonuses can be either predetermined amounts, with their value varying from RON 200 to RON 1500, or as percentage of the salary, with an average value of the equivalent of a monthly salary,” reads the study. The number of companies that offer lifestyle benefits, such as sports activities subscription, increased this year, while for the other types of benefits, including social protection benefits, the trend remained the same. PayWell Romania 2013 salary and benefits survey comprises compensation data provided by 156 companies across 9 industry sectors - automotive manufacturing, banking, FMCG and distribution industry, IT&C, leasing, pharmaceuticals, retail, outsourcing and service centers. Irina Popescu, irina.popescu@romania-insider.com (photo source: Sxc.hu)