BR Analysis. Average earnings exceed EUR 600 in Bucharest and 4 counties but remain below EUR 500 in half of Romania

The highest wages in Romania are in Bucharest and four counties (Cluj, Sibiu, Ilfov and Timis), exceeding EUR 600 per month on average, while the earnings of employees in Giurgiu county (Southern Wallachia) rose by 24 percent between October 2017 and October 2018, the highest pace in the country, regional statistics of the National institute of Statistics (INS) show.

The highest wage growth rates over the last 12 months were recorded Giurgiu, Salaj (22.1 percent), Alba (20.6 percent), Teleorman (20.5 percent) and Ialomita (20.4 percent), according to Business Review’s calculations.

On the other hand, the lowest growth rates for earnings were registered, during the same period, in Mehedinti (+7.9 percent), Botosani (+7.9 percent), and Gorj (+8.0 percent).

The highest net monthly earnings of employees were recorded in October 2018 in Bucharest (RON 3,481, EUR 749), Cluj (RON 3,144, EUR 676), Ilfov (RON 2,932, EUR 631), Timis (RON 2,873, EUR 618), and Sibiu (RON 2,834, EUR 609), all the other counties in Romania posting average net earnings below EUR 600.

Large differences

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The official numbers show that high wages are concentrated in only five areas of Romania: the Capital city and its surroundings (Bucharest-Ilfov), the three major regional centers from Transylvania, Banat and Moldova provinces (Cluj, Timisoara and Iasi) and Southern Transylvania (the highly urbanized and industrialized counties of Sibiu and Brasov).

At the opposite end of the scale, in 19 out of the 42 counties of Romania (including Bucharest), net monthly average earnings are still below EUR 500.

The lowest wages in Romania are in Suceava (EUR 443 in October), Botosani (EUR 449), and Neamt (EUR 451), all located in northern Moldova, Romania’s poorest region.

At the national level, the average net monthly earnings in Romania grew by 13.7 percent year-on-year in October 2018, to RON 2,720 (EUR 585), National Institute of Statistics (INS) data showed.

But real wages increased by only 9.1 percent during the same period, due to high inflation rate.

But more than 44 percent of the Romania’s employees received the national minimum wage in March, compared with 37 percent in 2017, according to official data obtained by Business Review.

Unions say this evolution is a consequence of government’s lack of interest for an equitable distribution of benefits of economic growth.

In October, the highest net monthly earnings were recorded in IT sector (RON 6,380, EUR 1,372) and the lowest in accommodation and food service activities (RON 1,580, EUR 340).

Romania has the second lowest average wage among the European Union member states, after Bulgaria.