German retailer Penny Market ups entry-level salary in Romania
Supermarket chain Penny Market, part of German group Rewe, has increased the minimum net wage for its employees in Romania to RON 2,000 (EUR 425) per month, which includes the meal vouchers. The decision became effective on August 1.
“The increase of the minimum net income to RON 2,000 is part of our retention strategy and required considerable efforts,” said Daniel Gross, General Manager Penny Market.
The company also offers its employees retention bonuses, paid after the first three months and first six months in the company, as well as performance bonuses based on meeting performance indicators. In 2018, 90% of Penny Market’s 4,588 employees received performance bonuses, the company said.
The company’s decision to increase entry-level wages comes after similar moves announced in recent years by competitors such as Kaufland, Lidl and Auchan against the background of a tight labor market.
Kaufland announced in February that it increased the minimum gross income in the company to RON 3,300, which also stands for close to RON 2,000 net. Lidl also announced in March that it increased the minimum gross income in the company to RON 3,500, meaning some RON 2,180 net (EUR 463). French retailer Auchan also announced that it increased the net monthly wage of its polyvalent workers to a minimum of RON 2,130 (EUR 453) starting December 2018.
Penny Market operates 244 discount supermarkets in Romania, supported by three logistics centers. The company has over 4,500 employees.