Real wage growth accelerates to 9.6% in Romania

The average net wage in Romania increased in November 2018 to RON 2,792 (EUR 599), which was 13.3% more than one year earlier (y/y terms). In real terms, deflated by the consumer price inflation, the wages increased by 9.6% y/y, accelerating from 9.1% y/y in October to reach the second-highest annual growth rate over the past 12 months. The highest real annual growth of the average net wages was in March, when the wages in the public sector increased by 22% (compared to February) in the healthcare system and by 18% in the education system. In November, the steepest monthly increase of the net wages in relevant economic sectors (against a 2.6% monthly advance of the average net wage, nominal) were in the sectors of car production (+11.1%), crude oil processing (+7.3%), utilities (+7.2%) and IT services (+7.1%). Another significant increase in the net wages is expected in January, when the minimum statutory wage rises and a special, higher, minimum statutory wage is introduced for workers in the construction sector. Employees in constructions will also pay no income tax, no contribution to healthcare system and lower social security contributions. 2019 comes with higher wages for Romanian president, PM, Parliament members editor@romania-insider.com (photo source: Pixabay.com)