Wages in Romania maintain robust growth around 10% y/y in August

Wages in Romania maintain robust growth around 10% y/y in August
By bne IntelliNews October 9, 2019

The net average wage in Romania increased by 14.4% y/y in nominal terms and 9.8% y/y in CPI deflated terms in August, losing momentum from June-July but remaining close to the 10% benchmark that prevailed over the past four years.

In nominal terms, the net average wage reached RON3,044 (€640). The sum is indeed some 20% above the benchmark calculated for “a decent level of living” in Romania for a single adult (estimates dating from this spring). This is why the poverty level is so high among the unemployed (mainly in rural areas and among the Roma population) and among families with children. One in three children in Romania live below the poverty line despite the unsustainable rise in wages over the past four years.

Net wages in the public administration, education and health care increased as of August in real terms by 7.2%, 12.0% and 2.9% to above-average levels (122%, 101% and 123% respectively).

In construction, the net wage recorded the steepest annual increase (+43% in real terms) but the earnings still lag behind the economy-wide average (by 3%).

The highest wages, more than twice as high as the average, were in computer programming and fuel refining.