The average net wage in Romania went down by 6.2% in January 2021 compared to the previous month to RON 3,395 (EUR 697). Still, the average net salary was 6.5% higher than in the same month of 2020.

In real terms, the net wages thus increased by 3.4% year-on-year, a significant deceleration from the 6.2% annual advance in December.

The Government froze the wages in the budgetary sector. Meanwhile, only one out of ten entrepreneurs in the private sector believe they can afford to pay higher wages this year, while seven out of ten expect to keep the wages flat.

Under these circumstances, the wages are likely to further moderate from the 4% real advance posted in 2020. The state forecasting and strategy body CNSP projects a 2% real advance of the net wages this year, with the real growth rate to return toward 4% per annum in 2022-2024. 

iulian@romania-insider.com

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