Romania has highest wage increase in a decade but still low salaries

Romania posted the highest wage increase in the EU in the last decade. Salaries in Romania went up three-fold during this period, although local wages still lag behind Western Europe. Labor productivity is still low in Romania while companies avoid investing in their employees, according to an analysis by KeysFin. The state has been trying to revive the market by increasing salaries for state employees, but fewer investors followed suit, given the unstable economic background. Salaries largely reflect economic realities, according to KeysFin. There is a significant current economic increase, but it mainly comes from consumption, hence it is not sustainable on the long run. But Romania continues to be attractive for investor for its low labor costs. Romania had a EUR 408 minimum gross salary in January, coming third after Bulgaria – EUR 261 and Lithuania – EUR 400. Luxembourg ranks first, with a EUR 1,999 salary per month. editor@romania-insider.com