Salaries grew by 5.1% on average in the private sector in 2012, according to PwC Romania's salary and benefit PayWell survey

The salary increase in the private sector reached 5.1% on average, according to this year's edition of the salary and benefits survey PayWell, carried out by the human resources consultancy department of PwC Romania. This is a similar level of salary growth to the one registered in 2011.

"The value comes close to the estimates at the beginning of this year, when companies were planning an average salary increase of 6%. Yet, the slightly lower actual salary increases performed by Romanian companies reflect the employers' caution related to cost increases in a time of economic uncertainty due to the recession in the Eurozone” stated Peter de Ruiter, Tax and Legal Services Leader, PwC Romania. 

The economic sectors reporting above average salary increases were the auto industry (8%), IT, pharma and outsourcing (all around 6%), while in banking, retail, tourism and leisure the salary increases were below average. 

"Romania has seen a two speed evolution in the past four years. On the one hand there is a dynamic export driven economy which has registered healthy growth rates even in these turbulent times. We are talking mostly about the auto industry, IT and pharma sectors. On the other hand there is a sluggish internal market which has affected the growth perspectives of companies in the banking and retail sector”, explained Peter de Ruiter.  

A significant decrease in the wage growth was reported in the manufacturing sector, from 7.2% in 2011 to 4.7% this year. This can be due to a steep decline in the industrial production sector correlated with an increase in workforce costs (growth of the national minimum gross salary as of 1 January 2012, according to Government Decision no. 1225/2011).

For 2013, the expectations are comparable to those of the previous years, as 41% of participating companies included salary increases in their annual budget forecasts, with an average salary increase of 6.1%. 

According to PwC Romania's survey, variable bonuses (performance and sales commission bonuses) decreased, alongside the benefits offered by employers as part of the total remuneration package, as compared to the data in the previous years. Variable bonuses were paid by 66% of participating companies, the highest level being in the pharmaceutical sector with 14% of the annual salary, followed by the FMGC, distribution and retail sectors, with 7%.

At the same time, the number of companies offering fixed bonuses decreased in comparison to the previous years, with only one third of respondents offering such bonuses to all employee categories, the average fixed bonus percentage per employee equalling a monthly basic salary. 

In terms of the benefits offered on the Romanian market there is a prudent approach similar with the one regarding the compensation costs. The PayWell survey data shows an overall decrease for all types of benefits - social benefits (meal tickets), security benefits (life insurance) or lifestyle benefits (sports and socialization).

The conclusions of the PayWell Romania 2012 survey, as well as those of Saratoga, analysing specific Human Capital effectiveness indicators, will be broadly presented in the Human Resources conference organized by PwC Romania in the second half of October.

About PayWell 2012

PayWell Romania 2012 salary and benefits survey comprises compensation data provided by 169  companies across 12 industry sectors (agro-chemicals, automotive manufacturing, banking, food and distribution industry, manufacturing industry, IT, leasing, hospitality, pharmaceuticals, retail, outsourcing, service centres and telecommunications). A number of customised analyses and reports, based on the geographical location, headcount and revenue of the participating companies can also be derived from PayWell study. The qualitative part of the report comprises information on specific compensation policies (e.g. salary increases, fixed and variable bonuses) and analysis of more than twenty benefits available on the market, from company car to meal tickets. The depth and spread of the report, its tenure and the number of organisations involved make PayWell the number one thought leadership tool available on remuneration in Romania.

About PwC

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