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June 22, 2021
BUSINESS

Average net salary, up 7.6 pc in December

Outgoing Labour Minister says minimum wage might increase to 850 RON, from 700 RON currently.

The average net nominal salary increased in December against the previous month, by 7.6 pc or RON 113, to RON 1.604, driven by Christmas and annual bonuses, according to a report issued by the National Statistics Institute (INS). “In December, average net gains were superior to those of the previous month, due to higher production values and gains (generated by contracts), as well as following the layoff of low-wage employees,” reads an INS press release.

The highest values of the average net nominal salary were reported by the financial intermediation industry (RON 4,348), while the smallest were in the sector of hotels and restaurants (RON 928). The most significant increases of the average net salary were posted by the pharmaceutical industry (27.1 pc) and the telecom sector (23.4 pc). Wage hikes between 17 and 20 pc were operated in the manufacturing of other transport means, other non-metal mineral products, the paper industry, financial intermediations (except for insurance and pension fund activities), and the publishing industry, while salary increases between 14 and 17 pc were reported in the production and supply of electricity and thermal energy, gas, hot water and air conditioned, the manufacturing of tobacco products, the collection and cleaning of wastewater, the supply and distribution of water. Increases between 12 and 14 pc were reported in activities auxiliary to financial intermediations (including insurance and pension fund activities), storage and other activities auxiliary to transport, the metallurgical industry, the manufacturing of electric equipment, the repairing, maintenance and installing of machines and equipment, the production of beverages, the printing and reproduction of records.

The most significant declines were registered in the sectors of other extractive activities (14.2 pc) and the extraction of metalliferous minerals, wood processing and production of wood and cork products (except for furniture, but including the items made of straw and other wickerwork) – between 2 and 4.5 percent.

In the state sector, the average net salary slightly rose from November in the health and welfare sector (0.7 pc), driven by the overdue salary rights that were paid to some employees of social assistance units, which were confronted by financial problems in the previous month. Another factor that influenced the evolution of salaries was the layoff of low-wage personnel by the public administration (0.6 pc), following the payment of overdue benefits and holiday allowances. In the education sector, there was a slight decrease of the average salary, against November (-1.8 pc), following the reduction of sums granted as overtime bonuses, because of school vacations.

On the eve of the cabinet resignation,  Labour Minister Sulfina Barbu once again explained that salaries and pensions will “slightly” increase only if there will be economic growth, the minister said in an interview with Evenimentul Zilei. “There are discussions, we are analyzing with trade unions and experts an increase of the minimum wage from RON 700 to RON 750, and from RON 800 to RON 850. At the same time, we want to see what solutions we can find so we do not scare employers. One (solution) would be fiscal incentives,” the minister mentioned.

In his turn, in an interview with Bursa, former Finance minister Sebastian Vladescu said that a 5 pc increase of state salaries and pensions would not cause an imbalance in the budget, at this moment. “If we have an economic growth around 1.5-2 pc, I consider that we can afford it,” he stated.

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