The average net salary in Romania in April, the first full month of lockdown, decreased by a real 3.7% compared to March and by a real 0.5% y/y compared to April 2019, the statistics office, INS, informed. In nominal terms, the average net wage increased by 2.2% y/y and decreased by 3.4% m/m. In absolute terms, the average net wage was RON3,182 (€656) in April.

Romania’s wages posted negative annual rise (real terms) for the first time since mid-2013, after buoyant expansion over the past years driven by the tight labour market and wage hikes in the budgetary sector.

However, the coronavirus (COVID-19) crisis only accelerated a trend already visible in the first two months of the year, when the real increase in the average net wages eased to around 5% from double-digit rates frequently seen over the past years. The government was anyway forced to reduce the public payroll, and further wage hikes in the private sector were possible only backed by significant investments.

In April, in the sectors of health and social assistance, the average net salary increased by just over 3.2% from the previous month, due to the risk bonus for medical staff involved in treating COVID-19 patients, according to data released by the INS on Thursday.

In the budgetary sector, decreases were seen in education (-2.8% lower salaries in April compared to March due to certain payments not disbursed to school teachers during the school holiday) and in public administration (-1.0%). In most sectors, the level of average net earnings decreased compared to the previous month as many companies suspended their activity and sent employees into technical unemployment.