Romanian companies are increasingly pressed as the labour force becomes more expensive: in Q2 2017, the hourly labour cost grew by 18.6% as compared to the same period last year, Romania being the leader in the European Union by percentage increase of these costs, according to data released on Friday by Eurostat.
By field of activity, Romania recorded the following labour cost developments:
- Industry: Growth of 13.5% in Q1 and 14.1% in Q2 2017 against the same period in 2016.
- Constructions: 13.4% increase in Q1 and 14.6% in Q2 2017.
- Services: 14.2% increase in Q1 and 13.1% in Q2 2017.
On average, in the European Union, the hourly labour cost increased by 2.2% in Q2 2017 as compared to the same period in 2016, according to Eurostat. In Q1 2017, the increase was of 1.6% against Q1 2016, hotnews.ro informs.
In Romania the gross minimum wage increased by 19%, from RON 1,050 to RON 1,250 on May 1, 2016. On February 1, 2017, the gross minimum wage increased by 16% from RON 1,250 to RON 1,450. For the gross minimum salary of RON 1,450, the employer (including social contributions on the employer’s part) pays RON 1,783 and the employee receives a net wage of RON 1,065.
Romania may be the European leader in the percentage increase in labour costs, in nominal terms is one of the last in Europe, only Bulgaria has a lower gross minimum wage.