Wages in private sector up on average by 5.1% in 2017, PwC study says

Wages in private sector up on average by 5.1% in 2017, PwC study says

Wages in the private sector went up on average by 5.1 percent in 2017, according to the study PayWell Romania, from PwC, on a sample of 100 private companies from financial-banking, pharma, industrial, retail and hotels industries.

On employees’ categories the lowest increase was registered at the top management level and the highest at the level of workers.

Overall the companies that attended the study planned for the current year an average increase in salaries by 4.8 percent, the real growth being slightly higher than the initial estimations.
„The expenses constraints were important for the private companies, as exceeding this ceiling can affect the profitability and the investments plans. In 2017, significant differences were recorded between the planned increases in salaries for companies and the real salaries. It’s very important that the private sector succeeded to keep a high predictability level of these expenses during the last two years considering the legislative changes and the increase of salaries in the public sector,” said Ionut Simion, country managing partner, PwC Romania.

„An important role in the salaries growth trend for the workers is the increase in the minimum salary, which increased by 16 percent in 2017 and anticipates a new increase close to 7 percent in 2018 up to RON 1,550,” said Oana Munteanu, senior manager and team leader of the HR services, PwC Romania.
According to the data of the National Institute of Statistics (INS), Romania registered one of the highest economic growths in EU in the second quarter of this year, of 5.7 percent on seasonally adjusted series and this increase is seen including in the salaries from the private sector. At the same time, the salary increase exceeds the expected level of inflation for 2017, which leads to an increase of the purchasing power of the employees, added Munteanu.

Only in industrial sector companies couldn’t be within the target for this year, the increase in salaries being 7.5 percent, compared with 5.6 percent as it was planned.
In 2018, the salaries growth plans will follow the same trend, with an estimation of increase between 5.7 percent for workers and 4.5 percent for top management within companies, as well as for sales force.

Source: business-review.eu