According to data published by the National Institute of Statistics, Romania’s trade exchanges with Hungary, Poland and Slovakia caused almost 43% of the deficit registered… Mai mult›
European countries have quite diverse pension systems in terms of financing methods but basically based on two models, Bismarck and Beveridge. The former is mostly… Mai mult›
“Captivity effect”: Competition Council’s recommendations for institutions not to become dependent on providers who win tenders in IT and health sectors
Authorities are often dependent on a single vendor or distributor, mainly in the acquisition of software developed on demand and medical devices, is the conclusion… Mai mult›
The game is, of course, very complicated. But not necessarily from Romania’s point of view. Until the clarification, among the uncertainties of the future, of… Mai mult›
Romania of investments in a European context: On the list of declines, but still ranking in the first third of it
Last year, total investment at the national level (both from the public and private sources) in the EU member states amounted to almost EUR 3,100… Mai mult›
Attention, manufacturing industry – ranks last in terms of increases: Record average salary in March. Net 581 euro and 1,157 euro in terms of purchasing power
de Marin Pana , 14.5.2018
Net nominal average salary increased at the same pace and reached 2,704 lei not only as a result of the significant increases in the healthcare sector (+ 22.3% compared to February) and education (+18.4%) but also due to the quite consistent advance in construction and financial intermediation fields.
In real terms (adjusted with the inflation), the purchasing power of the average wage increased by 8.4% compared to February 2018.
At the same time, the real reference salary (the purchasing power of the money received expressed as an index related to the purchasing power in October 1990) increased significantly compared to the previous month, from 180.6% to 195.7% and is heading towards the threshold of 200%.
Net average salary reached a record high of 581 euro at the average exchange rate of April 2018 (effective month of payment), which even surpassed the most recent month when the incomes went up due to the context, following the bonuses paid before Christmas (565 euro in December 2017).
After the decline in January to the minimum level of the last few years (only + 3.5%), the advance of the purchasing power compared to the same month of the previous year returned to a two-digit figure, similar to the one in October 2017. Significantly above the economic growth (6.9% in 2017 but estimated to have a loss of speed in the first quarter of 2018).
It is noteworthy that in February, the value of the purchasing power growth was 6.2% compared to the same month of the previous year, the same as the increase in labour productivity in 2017, which is sustainable according to the theoretical relationship that allows to sustainably maintain the real income growth over time.
- Evolution of national average salary and purchasing power over the last 15 months
- Month Net average salary Euro/leu Net average salary Purchasing power
It is noteworthy that the values in euro from the last column indicate the salary purchasing power in Romania at the EU average prices, which ensures the comparability in terms of living standards. By benefiting from the euro/leu exchange rate stability (even its slight decrease in the salary payment month), the amount of 581 euro earned on average at the national level is equivalent to 1,157 euro received in a country where prices are at the EU average.
Increases by fields of activity – healthcare ranks first
The end of the first quarter brought, as a first for the salary increases in Romania, the healthcare sector on the first position in terms of growth rhythm (+ 28% in nominal terms and almost + 22% in real terms) and its positioning significantly above the national average (126%), as it is normal in the developed economies.
Unfortunately, the sector average (increased especially by bringing forward the increases projected for 2022) concealed some inequities in the distribution of increases and even decreases for certain categories of staff, decreases that have been corrected only recently, but will only be visible in the coming months (what’s done is done in April).
Based on some natural developments related to the evolution of labour productivity but unpleasantly transposed by the bottom position within the national economy (although the growth rate was reasonable in relation to the economic performance), the manufacturing industry dropped again compared to the national average, to only 88% of that.
- Distribution of nominal salary increases by fields of activity between March 2017 and March 2018
- Financial intermediations, insurance
- Public administration, defence, etc
- Average in economy
- Hotels and restaurants
Surprisingly, the financial intermediations and insurance sector posted a significant rhythm of the income growth (+ 17.1% in nominal terms and 12.7% in real terms after the nominal increase that was also 12.7% compared to the previous month).On the second position in the ranking of salary increases was the construction sector, where the average salary exceeded the threshold of 2,000 lei per month (2,020 lei compared to only 1,670 lei 12 months ago).
After having previously recorded the largest percentage increases of incomes in the public sector, public administration has turned in to the national average in terms of growth rhythm. Nevertheless, it remained by absolute value at a level 23% higher than the level of health sector (4,179 lei compared to 3,408 lei) and 55% above the national average.
Lăsați un comentariu
"We are pulling ourselves out of maps!": Business community’s solutions for infrastructure development
In the medium and long term, companies in Romania lose business because of disarticulated infrastructure; the country overall loses new investment, the state budget loses… Mai mult›
New Romania’s Agent at the EU Court of Justice: 32 years old, failed exams, a person supported by Olguta Vasilescu
The government agent at the EU Court of Justice, Razvan Horatiu Radu, was replaced by the Government by a decision of Prime Minister Viorica Dancila… Mai mult›
The European Commission asks Romania to urgently align the system of taxes collected on the car registration to the European one. The request is announced… Mai mult›
CCR President in a visit to Russia, despite that Ministry of Foreign Affairs has recommended not to make this visit
CCR President Valer Dorneanu is in Russia today, where he attends the Sankt Petersburg International Legal Forum, despite that MAE has recommended not to make… Mai mult›
List of black payments / Corruption in health sectors: Bribes - 25% of contract value, higher than in other fields
Romania is the European country with the lowest spending in the health sector. However, DNA statistics show that the bribe in this field is higher… Mai mult›
The Tax Code and Fiscal Procedure Code will be amended by the end of this year with a "fair and logical" approach without "populist" initiatives,… Mai mult›
President Klaus Iohannis was fined with 2,000 RON by the National Council for Combating Discrimination. CNCD President Csaba Astalosz says though he disagrees with the… Mai mult›
Romanian businesses control only 6.8% of the 78,181 groups of companies in Romania. There have been 78,181 groups of enterprises identified, out of which 5,311… Mai mult›
The London Stock Exchange Group (LSEG), the operator of London Stock Exchange, announced that it will open a business services centre in Bucharest through the… Mai mult›
NATO largest exercise in Black Sea in 2018: More than 2,300 troops from seven countries participate in Sea Shield 18
21 military ships, 10 combat aircraft, and a submarine participate between May 4-11 in Sea Shield 18, the largest NATO exercise organised on the southern… Mai mult›
"Emergency constitutional support": President Iohannis sends laws on judiciary to Venice Commission and asks Constitutional Court to wait for the answer
President Klaus Iohannis announced on Wednesday that he is referring to the Constitutional Court of Romania the Parliament's amendments to the three laws on the… Mai mult›
The International Monetary Fund (IMF) has revised upwards the Romanian economy growth forecast for this year, from 4.4% to 5.1%, according to the latest World… Mai mult›
Company insolvency, set on an upward trend in 2018, caused losses of RON 9.6 billion in 2017: ONRC statistics
The number of companies and authorized natural persons (PFA) which have declared insolvency increased by 19.31% in the first quarter of 2018 compared to the… Mai mult›
Herman Berkovits received in May 2014 the Key to the City from Mayor Sorin Oprescu Herman Berkovits, the personal doctor of Israeli Prime Minister Benjamin… Mai mult›
Deloitte Romania, at the request of the Romanian Banking Association, conducted a study for analysing the tax treatment of the sale of receivables and the… Mai mult›