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August 10, 2022
BUSINESS

PwC: Private sector salary increases at best offset inflation rate

Pay raises in the private sector during 2009-2011 matched the rate of inflation, which means there have been no real salary increases from 2006-2008, when they exceeded inflation by 5-10 pc, Nicoleta Dumitru, senior consultant at audit and consultancy company Pricewa­terhouseCoopers (PwC) said at the PayWell 2011 study presentation yesterday, Mediafax informs. In 2010, companies have effectively upped salaries by 4.3 pc, despite original plans of a 6.4 pc increase, and budgeting stipulated salaries higher by 10.2 pc from 2009. In 2009-2010, the actual raises were below the 8 pc inflation. According to PwC, in 2011, things balance out somehow, given salaries rose 5.1 pc, while inflation reached 4.6 pc. The study also shows that the average gross pay at private companies in Bucharest is of RON 4,051/month, up circa 40 pc from elsewhere in the country, amid differences between employee benefit packages. The resignation rate rose in 2010 to 75 pc of all the private company employee departures, up from 50 pc in 2009, the study shows. Employee return on investment decreased by 12 pc in Romania in 2010, according to PwC’s Saratoga Romania 2011 sur­vey, from 1.53 to 1.34, according to a press release. The same survey reveals the cost of labour has also increased as a percentage in the overall costs of a company by 10 pc, from 9.26 pc of the total costs in 2009, to 10.13 pc in 2010.

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