The highest average wage growth in 2019, of 14%, was recorded for the hotel sector. Also, increases over the average of all sectors included in the survey were reported by industry + 11%, leasing +10% and retail +10%. According to Paywell 2019, the average gross salary among respondent companies rose to RON 5,941 from RON 5,428 in 2018.
In terms of staff categories, continues the tendency to increase at a faster rate of wages among unskilled or low-skilled personnel (workers, operators), on average 10%.
Compared to the previous years, however, when salaries at the managerial levels stagnated, in 2019 the operational management positions increased by 13% and the top management positions by 9%. At the opposite, with 5%, there are administrative staff, technicians and employees with little experience.
"We note that the wage increase in 2019 was higher than the level predicted by the companies included in Paywell last year, being influenced mainly by the workforce shortage, but also by the evolution in the public sector and by the government decisions regarding the minimum wage. As a result of the cumulative increases of about 50% that have been taken place in the public sector since 2017, the ratio between PayWell average income, representing mostly medium & large companies, and national average income has dropped from 1.4 to 1,16 during this period. In this context, private companies face a double pressure: on the part of the public sector, which has become much more attractive for the employees and the workforce shortage that has intensified in recent years”, said Daniel Anghel, Leader of the Tax and Legal Department, PwC Romania.
In terms of benefits, meal tickets, annual leave days and special occasion bonus continue to be top. However, compared to previous years, the biggest increases in popularity were recorded by time management (flex time, work from home) and benefits related to the well-being of employees (bookstore, health programs, etc.).
”Employees have started to appreciate other benefits besides the traditional ones. For example, transportation benefits, flex time or work from home are more required. As the labor market is becoming more competitive, employers are increasingly concerned about developing various benefits packages and an attractive work environment, to be preferred by employees or to retain them. The increased attention paid to the differentiation benefit programs is a sign of the labor market sophistication as the standard of living increases. This trend will continue in the coming years, with potential for acceleration if the fiscal legislation will further encourage the promotion of certain benefits, which may also have a positive social impact (health insurance, pension plans, etc.)”, said Oana Munteanu, Senior Manager PwC Romania.
Other conclusions of the study
About PayWell 2019
PwC conducted the survey on 100 private companies from Banking, Leasing, Pharmaceuticals, Industrial products, Retail and Hotels sectors. Participation in the survey implies provision of information on salary levels and compensation and benefits policies currently in place within the surveyed organizations.
About PwC
At PwC, our purpose is to build trust in society and solve important problems. We are a network of firms in 158 countries with over 276,000 people who are committed to delivering quality in assurance, advisory and tax services. Find out more and tell us what matters to you by visiting us at www.pwc.com. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity.
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