State takes more and more money from employees: gross and net wages gap increased to RON 868

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The gap between the gross and the net wage, meaning that part which the employees give it to the state, has continuously increased in recent years, reaching RON 868 in January 2017.

Ten years ago, this difference was of RON 314, National Institute of Statistics (INS) data reveal. In January 2007, for example, the average net salary was RON 1,232, while the gross wage stood at RON 918.

Statistics show that the share of contributions and taxes in the gross wage grew from 23.6 percent in 2005 to 26.8 percent in 2008, but now, in 2017, it reached to 27.4 percent. In nominal terms, the state took RON 222 from the average salary in 2005, then RON 465 in 2008, RON 714 in 2015, and now the state takes almost RON 870.

According to specialists, the first issue causing this growing gap between gross and net wages comes from the fact that the deductions that the employees benefit have remained at the 2004 level.

In January 2017, the average gross nominal earnings were RON 3,168, by 2.7 percent lower than the one registered in December 2016. The average net nominal earnings were RON 2,300, decreasing as against the previous month with RON 54 (-2.3 percent).

In year-on-year comparison, the average net nominal earnings increased by 18.4 percent.

In January 2017 as against the previous month, the level of the average net earnings registered decreases in the majority of activities belonging to the economic sector due to granting in December 2016 of occasional bonuses. Also, the average net earnings in January decreased by comparison with the previous month due to lower production achievements or the receipts level, as well as staff hiring with low earnings.

The most significant decreases in the average net earnings have been recorded by 31.9 percent in water transport, respectively by 28.6 percent in manufacture of coke and refined petroleum products; between 17.5 percent and 23.5 percent in forestry and logging.

In the budgetary sector were registered increases of the average net earnings as against the previous month due to the application of legal basis on the remuneration of the personnel paid from public funds – education (+6.7 percent), public administration (+3.7 percent), respectively health and social assistance (+2.2 percent).





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