EY barometer: Business community is more concerned about growth model and public policies than bureaucracy

Entrepreneurs and leaders of Romanian private companies are distrustful about the consumption-based economic growth model because it does not offer but a short-term perspective, according… Mai mult

Regional GDP / Good news: with over EUR40,000 / inhabitant, Bucharest surpasses Madrid, Berlin and Rome. Bad news: result of internal imbalances

According to data published by Eurostat, the living standard in the Bucharest-Ilfov region was 139% of the EU average in 2016, according to GDP per… Mai mult

A table: Structure of Romania’s government expenditure within European context

According to the Eurostat data, in 2016 Romania ranked last but two among the EU states both in terms of share of GDP allocated to… Mai mult

January 2018: Advance of purchasing power melted by the minute. REAL wage increases by sectors

The national gross average wage announced by the INS for January 2018 was 4,143 lei, a value that cannot be compared with the previous month… Mai mult

How Romania wants to shift to circular economy without recycling

Since the beginning of this year, three bags have appeared at the refuse disposal chute of the apartment block where I live. One black, another… Mai mult

Romanian salaries and their taxation: a comparison with OECD countries. Ranking by business sectors

de Marin Pana 2.10.2017

The net national average income for 2016 was 2,046 lei (equivalent to 456 euros) per month, according to the data processed by INS.

This key indicator for the economy grew by 10.1% compared to the previous year, the highest increase in the EU. The analysis of the INS data also shows the monthly cost related to the payment of the salary, respectively 3,493 lei (778 euro) per employee.

Thus, for 100 lei paid by following the law, an employer had to allocate 170.72 lei on the salary costs, which means that the state has charged the work by a total effective rate of 41.4%. These figures are slightly lower than in the previous year, when the cost for 100 lei, net amount, was 171.50 lei and the cumulative taxation of the work 41.7%.

This is a similar level to Slovakia and above the average of 36% within the OECD (which comprises the most developed economies in the world) but below major European economies such as Germany, France and Italy, where this indicator (tax-wedge in English) is over 45%. Closer to us, Hungary went with them, while Poland (which it might be useful for us to take as a model) was close to the average of the developed countries.


  • Levels of work taxation in some developed economies (2016)


The average number of employees increased last year from 4,611.4 thousand persons to 4,759.4 thousand persons (+ 3.2%) and was 5,223.8 thousand persons on December 31, 2016. If related to the economic growth, estimated at 4.8% (in the provisional version), it results that two-thirds of the GDP growth came from the expansion of the economic activity and only one-third from improving the productivity.

Top of Romanian salaries by industry

As regards the ratios between the amounts representing payments for various activities of the national economy, the situation is presented in the table below. The IT sector has taken over the “yellow t-shirt” from the financial sector and the public administration provides incomes more than 50% higher than the average of the economy, to which health and education sectors are (unfortunately) very close.


  • Net salary income by sectors and the relation to the national average
  • Sector             Lei       % national average
  • IT&C
  • Financial intermediation and insurance
  • Extractive industry
  • Production and distribution of energy, natural gas, and water
  • Public administration
  • Professional, scientific and technical activities
  • Health and social assistance
  • Education
  • Transportation and storage
  • Manufacturing industry
  • Real estate
  • Retail and wholesale trade
  • Agriculture, forestry, fish farming
  • Shows, cultural and leisure activities
  • Construction
  • Other services
  • Hotels and restaurants


In the structure by regions of development, a net difference can be observed between the capital city region, where the share of employed people in commercial services approaches 62%, and all other areas of the country, where it varies between 35% and 41%. The explanation comes from the much lower salary in the latter, which does not allow the job creation and the service development due to lack of a solvable demand.

Also noteworthy is that the share of public sector employees in the Bucharest area (below 16%) is much lower than in other areas that are close to 20%, with three revealing exceptions.

In the Western Region, the most developed after the capital city, the share of public sector employees is only 16.6%, well below the poorest regions, Southwest (24.0%) and North East (26.4%), where the state is one of the main employers and price forming player on the labour market.

Finally, it should be noted that more than three quarters of employees have been active in the private sector last year. Its share in the economy was 75.7% and the increase in their number was 4.5% compared to the previous year, which leads to an increase of about 155 thousand jobs, over the increase in the whole economy. That is the whole increase in the number of jobs came from the private sector.

Mergeți în homepage ›

Publicat la data de 2.10.2017

Lăsați un comentariu


Five priorities of the Coalition for the Development of Romania presented to Dancila government

Representatives of the Coalition for the Development of Romania (CDR), an initiative of the Romanian business community coordinated since the beginning of this year by… Mai mult

Romania to host regional centre for endowment of Black Hawk helicopters for Central Europe

Romaero and American company Sikorsky, part of the Lockheed Martin group, have signed an industrial partnership agreement that will lead to the establishment of a… Mai mult

State-owned companies forced to participate in public tenders

The Government approved on Thursday a memorandum that includes a series of measures targeting publicly owned or controlled companies. Basically, the document forces the state-owned… Mai mult

Country Report - European Semester: Romania risks a tough economy landing at change of cycle, because of growth model

"In the absence of structural reforms and fiscal consolidation, Romania's strong economic growth risks creating the conditions of a tough landing," in case of a… Mai mult

Governance and Congress: Prime Minister Dancila appointed PSD Vaslui and Neamt leaders’ sons as state secretaries

Prime Minister Viorica Dancila, who is aspiring to the position of PSD executive president, promoted the sons of PSD Vaslui and Neamt presidents to government… Mai mult

Italians from Fincantieri made an offer for Mangalia Shipyard: Conditions in which they would buy 49%

The Italian group Fincantieri sent the Romanian Government an operational management offer for Mangalia Shipyard. The offer also includes the option to acquire a 49%… Mai mult

Monopoly on natural gas market in Romania: Interests supported by deputy Iulian Iancu push Romania to an open conflict with European Commission

The European Commission will sue Romania at the European Court of Justice if the Parliament in Bucharest adopts the amendments to the Emergency Ordinance 64/2016… Mai mult

AHK ”Cities of Tomorrow” – A broad view of things yet to do in Romania

As one of the first speakers, His Excellency, Ambassador Cord Meier-Klodt of the Federal Republic of Germany, while recalling the city of Munich winning a… Mai mult

Frans Timmermans in Bucharest: Stop attacking the judiciary, there is nothing wrong with it. Politicians and governors should let judiciary carry out investigations

First Vice-President of the European Commission, Frans Timmermans (photo), announced Thursday in Bucharest that he has established a direct communication line with the Parliament and… Mai mult

"Whole Romania is taking an intensive course in Law, taught by people who have interests in solving their own cases and have never graduated Law"

The President of the Supreme Court, Cristina Tarcea, said on Wednesday at the presentation of DNA’s activity report that she would like the recent attacks… Mai mult

Senate committees have approved a ceiling on interest rates on loans

The Senate committees on budget, economic and legal matters issued an admission report with amendments to the legislative proposal that amends OG 13/2011 so that… Mai mult

ANRM: OMV Petrom and ExxonMobil will increase by over 50% Romania’s production, with natural gas from Black Sea

ExxonMobil and OMV Petrom will extract 6 billion cubic meters of natural gas per year from the Neptune block in the Black Sea. Romania will… Mai mult

Justice Minister initiates procedure for dismissing Laura Kovesi. Investigation on Ordinance 13 and Belina File - among official reasons

Justice Minister Tudorel Toader announced on Thursday evening the initiation of the procedure because of "intolerable deeds in a state based on the rule of… Mai mult

A new amendment to the Tax Code: PFAs are first targeted

The Minister of Finance wants to increase the taxation of income for PFAs (self-employed person), which is now capped at the national minimum wage level.… Mai mult

"SOS" letters sent by business community to state institutions: Reform ANAF!

The member organizations of the Coalition for Romania's Development (CDR) urge the Government that the reform of ANAF should become one of the "top" priorities… Mai mult