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Fiscal Council: Romanian civil servants have the highest wages in Central and Eastern Europe, relative to average wages

de Adrian N Ionescu 31.3.2017

The salaries of Romanian civil servants are 56% higher than the national average wage, which makes the ratio between the two the highest in the Central and Eastern European (CEE) countries – Hungary, Poland, the Czech Republic, Bulgaria and Slovakia – according to an analysis by Ionut Dumitru, Chairman of the Fiscal Council.

In all other countries, the ratio varies between about 120% (Poland and Slovakia) and about 105% in the Czech Republic.

On the other hand, the wages in the Romanian education system are lower than those of teachers from Hungary and Poland relative to the national average wage.

Except for Hungary, this ratio also disadvantages the employees from our healthcare system compared to their peers from the other CEE countries:

Relative wages from Romanian public administration (versus national average wage) are much higher than in other CEE countries

*

  • Ratio of wage in public sector/private sector – Ratio of education system wages/national total       – Ratio of healthcare system wages/national total         Ratio of public system wages/ national total
  • Sources: national statistics institutes, calculations of the Fiscal Council

*

It should be noted that the high average wage from the public system is due to the very high wages from the central public administration – mainly ministries.

Because of the situation in the public administration, the average salary of the state employees is 12% higher than the average level in the private sector, the biggest ratio in CEE.

The relative wages in the public sector are higher in Romania than in other CEE countries since 2013, but the Romanian state employees were also better paid than those from CEE between 2006 – 2009. The level decreased later on, when Emil Boc government cut by 25% the salaries in the public sector:


*

  • Relative wages in public sector (versus private sector) are again the highest in Romania, compared to CEE countries
  • Evolution of public sector wages/private sector wages
  • Sources: national statistics institutes, calculations of the Fiscal Council

*

Due to the accelerated increase of the minimum national wage over the last five years, the ratio between this indicator and the average national wage ranks 7th in EU 28, while in 2012 this ratio placed Romania among the lowest positions:

*

  • Ratio of minimum national wage/average national wage, in 2016
  • Source: Fiscal Council

*

It is worth recalling that the Minister of Labour, Lia Olguta Vasilescu, made a proposal to the unions to apply a differentiated minimum national wage:

  • for state employees – a bigger one, evolving in line the PSD government program
  • a lower minimum wage – for the economic sector (private companies, public or public-private entities), where increases should follow the market economy principles, meaning to be linked to productivity growth.

The National Prognosis Commission estimated that the average salary in 2017 will be 3,131 lei, while the average salary will reach 3,724 lei in the public sector and 3,003 lei in the competitive environment.

The gaps will widen in the coming years, according to CNP and the difference between private and public sector will amount to over 1,000 lei:

  • Average national wage – 3,977 lei
  • Average wage in the public sector – 4,860 lei
  • Average salary in the competitive environment – 3,792 lei
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