Romania’s average net monthly earnings growth rate eased to 14.7 percent year-on-year in April, from 15.5 percent in March, but the wages lost purchasing power compared to the previous month, National Institute of Statistics (INS) data showed on Monday.
The average net monthly earnings rose by 0.3 percent month-to-month, from RON 2,704 (EUR 580) in March to RON 2,713 (EUR 583) – a record high – in April.
Real wages increased by only 9 percent between April 2017 and April 2018, due to high inflation rate (5.2 percent in April, year-on-year).
Official data also show that Romanian employees lost purchasing power in three out of four month of this year, compared with the previous month.
The purchasing power of the employees declined by 0.2 percent in April, by 0.2 percent in February and by 6.2 percent in January, but gained 8.4 percent in March.
Compared to December 2017, wages in Romania increased by 3.2 percent, on average, and consumer prices rose by 1.9 percent, resulting a real wage growth rate of 1.3 percent.
The gross average monthly earnings increased to record high RON 4,512 (EUR 969) in April, up from RON 4,488 (EUR 963) in March.
Since the beginning of this year, the social security contribution and the social health insurance contribution paid by the employer were transferred to the employee in Romania, and the effect was a sudden surge of the gross wages in January, from RON 3,662 (EUR 790) in December.
The highest net monthly earnings were recorded in April in IT sector (RON 6,437, EUR 1,382), in oil and gas (RON 6,262, EUR 1,345) and insurance, reinsurance and pension funds (RON 6,032, EUR 1,295), and the lowest in accommodation and food service activities (RON 1,563, EUR 336).
Romania has the second lowest average wage among the European Union member states, after Bulgaria.