SIMILAR ARTICLES

70% of economic growth in first three quarters of 2018, obtained by stocks increase. Foreign exchanges pulled down GDP by 1.6 percentage points

INS recalculated GDP in the third quarter and the first three quarters of the year. Here are the growth data for the Romanian economy, updated… Mai mult

Romanian Leu of 2019: Depreciation rate depends on budget credibility and seriousness

The estimates by economists of most important banks in Romania on the depreciation of the local currency for this year range between 4.73 and 4.77… Mai mult

Romania and energy: Position in European context

Final energy consumption of Romanian industry declined by about 75% between 1990 and 2016, compared to only 25% at the EU level, according to data… Mai mult

Crash signal in foreign trade – export coverage ratio has fallen to 2011 level. And we do not import robots

The trade deficit on November 2018 was EUR 1.567 billion, the second worst monthly performance registered last year. Worryingly, the growth rate of exports compared… Mai mult

Intense M&A activity in 2018 in Romania – Deloitte analysis

The Romanian mergers and acquisitions market reached nearly EUR 2 billion in 2018, according to a Deloitte Romania analysis based on public sources and transactions… Mai mult

Cronicile

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

 

The national gross average salary announced by the INS for March 2018 was 4,488 lei, 8.7% higher than in the previous month.

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
  • Fields
  • Health
  • Construction
  • Education
  • Financial intermediations, insurance
  • Public administration, defence, etc
  • Average in economy
  • IT&C
  • Transport
  • Trade
  • Hotels and restaurants
  • Manufacturing

*

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.

Mergeți în homepage ›

Publicat la data de 14.5.2018

Lăsați un comentariu


NEWS

Mugur Isarescu: "Ordinance weird thing" reduces monetary policy efficiency, which will not help Government

The National Bank of Romania (BNR) will convoke the National Committee for Macro-prudential Supervision, where the Ministry of Finance will be required to clarify the… Mai mult

World Bank lowered prospects on Romania's economic growth for 2019 and 2020

  Romania's economy will record an advance of 3.5% in 2019 and 3.1% in 2020, down one percentage point from June 2018 forecast, according to… Mai mult

State is borrowing at increasingly higher costs - government bond yield reached 5.33% per year

The benchmark government bond yield jumped above the 5% threshold on Thursday. The Ministry of Public Finance (MFP) attracted RON 300 million from banks on… Mai mult

Iasi - Tg.Mures highway disappeared from Large Infrastructure Operational Programme 2021-2027

The Ministry of European Funds has taken out Iasi-Tg. Mures highway project from the Large Infrastructure Operational Programme 2021-2027 and the Ministry of Transport already… Mai mult

Senate postpones discussions on DNA’s request on waiving immunity of Calin Popescu Tariceanu until February 2019

The Senate has decided that it will put to the vote the decision to waive Calin Popescu Tariceanu's immunity only in the spring session, that… Mai mult

Implementation of 5G technology, a multiplication effect in economy of EUR 4.7 billion - announces Sorin Grindeanu (ANCOM)

The National Authority for Management and Regulation in Communications (ANCOM) launched on Wednesday the National Strategy for the Implementation of 5G Technologies in Romania for… Mai mult

FIC: Amendments on Criminal Codes expose business environment to abuses from civil servants

Some of the amendments to the criminal codes will generate mistrust regarding Romanian state's ability to ensure the legality, stability and predictability of business relationships… Mai mult

European Semester / European Commission asks Romania to correct its medium-term structural deficit by 1% of GDP

Minister Eugen Teodorovici is pressured by the EU to reduce the budget deficit After finding that the Government has done nothing to adjust the deviation… Mai mult

Sovereign Fund gets legal base. Details announced by Minister Teodorovici

The Government adopted on Thursday the ordinance that provides for the general framework for the establishment of a Sovereign Fund. Later, after new talks with… Mai mult

Ford is looking for 1,700 employees to produce EcoSport SUV model

The representatives of Ford Craiova met on Wednesday with mayors of 30 localities from Dolj county in order to stimulate the attraction of 1,700 new… Mai mult

Development strategy / Government squeezes even investment money from its own companies: EUR 120 million from only two entities in energy field

Nuclearelectrica (SNN) and Romgaz (SNG) have calculated the additional dividends to be paid to the state after the Ministry of Finance (MFP) sent to the… Mai mult

DNA, officially: Senate President is suspected of having received a USD 800,000 bribe. Case file opened at a request from Austrian judicial authorities

The case file in which the DNA requested the waiving of the Senate President’s immunity was opened at the request of Austrian judicial authorities and… Mai mult

Illegal state aid / European Commission demands Romania to recover EUR 60 million from CE Hunedoara

Romania has to recover illegal state aid worth EUR 60 million granted to Compexul Energetic Hunedoara, announced the European Commission with a statement released on… Mai mult

Ministry of Finance planned loans of RON 4.74 billion in November. Costs are increasing

The Ministry of Public Finance (MFP) intends to borrow in November RON 4.74 billion, 1.4% more than in the previous month, according to the Ministry.… Mai mult