fbpx Modifica setari cookieuri

SIMILAR ARTICLES

Key changes in GDP formation structure: Trade surpasses industry. GDP advance on Q1 – maintained at 2.4%, gross

The National Institute of Statistics confirmed the economic growth of 2.4% in gross series and 2.7% in seasonally adjusted series for the first quarter of… Mai mult

Budget implementation: 5-month deficit increased to 3.59%. From where, how much, how

The implementation of the consolidated budget in the first five months of 2020 registered a deficit of RON 38.8 billion (3.59% of GDP), of which… Mai mult

2020 European Innovation Scoreboard: Big problems of Romania, which is by more than 68% behind EU average

Romania remains the weakest innovator in the EU, with a score in last year’s indicator ranking at only 31.6% of the EU’s average performance, according… Mai mult

Four warning signals for Romania in 2020 Convergence Report

According to March 2020 data, the EC Convergence Report for Romania points out that the long-term interest rate for convergence purposes was 1.5 percentage points… Mai mult

Conditions and mechanism for accessing financing from recovery fund: supervision, indicators, approvals, diplomacy

The European Commission is doubling its efforts to show that Europe has learned the lessons of the past and will avoid now, after the “Great… Mai mult

Purchasing power – 60% higher than in 1990. The inequality of distribution

de Marin Pana 14.12.2016

salariu-euroThe average net earning announced by INS for October 2016 was 2,108 lei, 14 lei or 0.7% higher than the previous month. Expressed in the single European currency, the average net wage was 467 euros or 942 euros, measured in standard purchasing power parity.

That means only one euro more compared to September, as the exchange rate for its calculation exceeded again the threshold of 4.50 lei / euro.

Although prices were 0.43% lower than the same month last year, purchasing power stood at + 13.2% compared to one year ago, the smallest advance in all months of 2016. This is a signal that should be seriously taken into account, given that the labour productivity declined by a monthly average of 0.9% in the first nine months of the current year.

tabel1-4*

Month              Net average earning (lei)        Euro/ leu          Net average earning (euro) (euro pcs)            Purchasing power (%, 12 months)

*

As anticipated, nominal wage indexation are “slipping” and the exchange rate began to accommodate the increasing incomes beyond the real potential of the economy.

The solution applied in recent years of transferring part of the productivity gains to increasing purchasing power was dropped for a simple reason: we have no productivity gain, so we have nothing to transfer.

9 lei gross income per hour of work. Plus the unequal distribution

Despite the increases announced, Eurostat data places us on the second to last position among the EU member states both in terms of average hourly income (most often) at national level, expressed in euros (2 euros / hour) and proportion of people with low wages. 24.4% of the Romanian employees, or almost a quarter of them, get less than two-thirds of the same average hourly wage for their work.

More specifically, despite the wage increases mentioned above, the Romanian employee gets about 9 lei gross hourly income on average and one in four gets less than 6 lei gross income per hour (after tax, the net amount decreases below 5 lei). The average level is seven times lower than in the Eurozone (where they are paying an average of 14.1 euros / hour) and six and a half times below the EU (13.2 euros / hour).

Overall, what is clear is that besides the fact that we are relatively underpaid overall, money is also distributed extremely unevenly. To position ourselves within the European context, we mention that countries where the fewest employees paid less than two-thirds of the average are in Sweden (only 2.6% of all employees!), Belgium, Finland, Denmark, France and Italy, all countries with less than 10%.

In our defence, we could refer to the situation from Latvia (25.5%), Lithuania (24.0%), Poland (23.6%), Estonia (22.8%) and Germany (22.5%). Although we cannot overlook that our neighbours Hungary (17.8%) and Bulgaria (18.2%) are only slightly above and the closest to the EU average (17.2%).

Mergeți în homepage ›

Publicat la data de 14.12.2016

Lăsați un comentariu


NEWS

Pentagon transforms Campia Turzii unit into a NATO air hub at the Black Sea

A former Soviet airbase in central Romania could become a hub for US Air Force operations in south-eastern Europe, where the Pentagon is seeking to… Mai mult

Nuclearelectrica shareholders approved to terminate negotiations with Chinese for building reactors 3 and 4 from Cernavoda

Nuclearelectrica's Board of Directors has been mandated to initiate proceedings to terminate negotiations with China General Nuclear Power Group (CGN), as well as legal effects… Mai mult

Renault holds expansion of its plant in Romania, 15,000 jobs cancelled at global level

"Putting capacity growth projects planned in Morocco and Romania on hold" - is one of the measures included in the draft plan of Renault Group… Mai mult

Romania is a net importer of electricity in 2020 as well

Romania imported an amount of electricity of almost 796 GWh in the first month of this year, by more than 36% above what it exported… Mai mult

Shareholders of Galati steel plant promise investments of one billion euros

GFG Alliance has committed to invest one billion euros to upgrade Galati steel plant in order to reduce emissions and increase production. Another EUR 1… Mai mult

Transport Ministry announces it has sent to Brussels the financing request for Sibiu - Pitesti highway

The Transport Ministry, as the Intermediate Body in Transport, approved the financing request for the project "Construction of Sibiu - Pitesti highway", Sections 1, 4… Mai mult

Romania and Juncker Plan: EUR 720 million attracted, of which 35% by Transgaz for BRUA

(The map of investment financed through Juncker Plan, by GDP share. Darker colours mean higher shares) The operator of national natural gas pipelines, Transgaz (TGN)… Mai mult

Top 3 reasons why young people leave Romania

Lack of trust in authorities, corruption and low living standards are the main reasons why young people leave Romania. The data is part of a… Mai mult

IMM Invest Romania – program implementing rules have been published

The Ministry of Public Finance announces that it has issued the methodological norms for the implementation of the Program for supporting small and medium-sized enterprises… Mai mult

Pollution import and car park expansion: comparisons with the other EU states

Romania is the EU country with the fewest cars in terms of the number of inhabitants, according to data recently published by Eurostat. We appear… Mai mult

Government is trying to save budget deficit: reductions in public administration system, cancellation of bonus for harmful conditions, excise duty on soft drinks

The Government is preparing the public for the first measures aimed at avoiding the budget slippage, which would be applied by the PSD-ALDE government. News… Mai mult

Laura Codruta Kovesi remains alone in the race for European Chief Prosecutor

French Prosecutor Jean-Francois Bohnert will be appointed as head of the European Financial Prosecutor's Office, a position for which he was heard on Thursday, 11… Mai mult

Romania - EU country with highest risk of dying in a road accident, Bulgaria is quickly decreasing number of victims since it built motorways

Romania recorded the highest road deaths in the EU also last year, with 96 deaths per one million inhabitants in 2018, almost double the EU… Mai mult

Latest developments in progress at Health Ministry: Differentiated wages based on performance, competitions organised at a regional level not by hospitals

Sorina Pintea announced on Thursday further new changes that will be brought to the functioning of the health care system, including new rules for employment… Mai mult

ANAF changes selection procedure for liquidators. Main changes

The new order on approval and selection procedures for insolvency practitioners is an important step to a very good direction, industry experts say. ANAF is… Mai mult

Romania loses competition for a seat at UN Security Council. MAE Excuse: Campaign started too late

Romania lost to Estonia in the final vote to get the non-permanent member position within the UN Security Council for the period 2020-2021. On Friday,… Mai mult