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Romania's Wage Growth Slows to Single Digits in January - International Edition (English)

W. Syaban

March 20, 2025

In January, the average net salary in Romania increased by 9.7% compared to the previous year, reaching RON 5,328 (approximately EUR 1,070). This represents the lowest yearly real growth rate of +4.7%, recorded since May 2023.

Wages are anticipated to slow down in growth through 2025, following an increase of 4.4% and 7.7%, adjusted for inflation, in 2023 and 2024 respectively.

The governmental predictive agency anticipates an annual increase of approximately 1.6% in the average net salary for 2025, which would slightly surpass a yearly growth rate of 3% over the next few years. Should the administration adhere to its strategy of maintaining stable salaries within the public sector throughout 2025—while also reducing certain bonuses—the projection appears feasible considering businesses' increasingly conservative approaches due to looming economic uncertainties.

In January, the average net salary dropped by 1.1% from what it was in November (prior to end-of-year bonuses in December). Salaries within public administration fell by 0.5%. In education, the decrease reached 2%, whereas the healthcare sector saw an increase of 2.6% relative to November levels. This suggests that as a whole, public sector payrolls did not grow during the initial month of the year.

In the computer programming industry, wages decreased by 7.9% from November and increased by just 2.2% year-over-year (which actually represents a real decrease of 3% year-over-year). This change occurred following the removal of the favorable income tax benefits for employees in this sector.

In the manufacturing sector, the average net wage decreased by 3.4% from November but showed an increase of 11.4% (and 6.4% year-over-year in real terms) to reach RON 4,786 in January.

iulian@romania-insider.com

(Photo source: Aaron Amat/Dreamstime.com )

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