The wage recorded an average increase of 4.1 percent in the private sector in 2015, according to this year’s edition of the PayWell Romania salary and benefits study, a level similar to last year.
“Although there is no major difference, this is the first year after a long time in which the actual average wage increase was higher than that initially planned by companies (3.9 percent). This is a sign that the economy is on an upward path. Also, due to the deflation that Romania is experiencing as a result of the VAT cuts, Romanian employees are enjoying an increase in their purchase power, which we expect will lead to a strong growth in consumption in both 2015 and 2016”, Mihaela Mitroi, Tax and Legal Services Leader, PwC Romania stated, a press release informs.
The highest average salary increase in 2015 was registered in the pharmaceutical and FMCG sectors (4.5 percent in both cases). Same as last year, lower than market average salary increases were in banking (2 percent) and retail (3.7 percent).
“Compared to previous years, in 2015 we’ve seen higher salary increases in sectors directly influenced by the evolution of internal consumption, such as the FMCG, and even retail sector as compared to last years. The only sector that registered significantly lower average wage increases is the banking, which is still struggling with internal challenges such as portfolio restructuring and market consolidation, as well as external macro-economic influencers”, explained Horatiu Cocheci, Senior Manager, Human Resources Consulting Leader, PwC Romania.
In terms of employee categories, the highest salary increases were registered for blue-collar workers and operational specialists (4.3 percent), while the wages of top management increased at a bit slower pace (3.9 percent).
For 2016, the wage increase currently planned by the participating companies at the PayWell study is 3.9 percent, similar to the one planned last year for 2015.
“Employers are showing cautiousness in terms of salary dynamics, budgeting more modest salary growth levels. The recent years practice has shown that these planned wage increases are, most of the time, adjusted during the year depending of the company’s performance, the evolution of the economy and that of the market segment in which the company operates”, Cocheci explained.
As for the other elements of the remuneration package, PayWell shows that 38 percent of the Romanian companies are offering fixed bonuses for all employees (independent of the employee’s or the company’s performance) for various holydays (Christmas, Easter or the summer vacation season). These are either fixed amounts that vary between RON 500 and RON 1,500, depending on the company and the industry in which it operates), or are granted as a percentage of the monthly salary (such as the 13th salary or the holyday bonus).