The private sector wage growth in Romania has shown a noticeable deceleration in recent times, reflecting the broader economic landscape. According to the PwC PayWell 2025 salary and benefits study, companies anticipate an average salary increase of just 6% for 2026, following a 7.47% rise in 2025 and 10.45% in the previous year. This trend indicates a cautious outlook among businesses due to the prevailing uncertainties in the economy, as illustrated by the modest economic growth projections from the National Institute of Statistics (INS), which estimates only 0.8% growth for 2024 and a mere 0.3% for the first half of 2025 compared to the same periods in 2023.
Economic Context
The waning wage growth can largely be attributed to the slowdown of the economy. High inflation rates are eroding disposable incomes, pushing companies to evaluate their salary structures more critically—especially in sectors where average salaries are significantly lower, such as industry and retail. The tech industry currently leads with the highest average salary increase of 9%, an encouraging development in an otherwise tepid wage growth scenario.
Sectorial Analysis
The wage growth varies substantially across different sectors. Key findings from the report highlight that:
- Retail: Experienced an 8.99% increase.
- Industry: Saw an 8.32% rise.
- Pharmaceutical sector: Faced a much lower increase of only 3.56%.
This variability hints at market adjustments rather than a reflection of divergent economic realities between sectors. Notably, the organizational roles that commanded the highest salary increases this year were predominantly in sales (9.37%), administrative/infrastructure services (9.08%), HR (7.69%), and IT (7.13%).
Future Projections
For the forthcoming year, industrial companies anticipate the largest average salary increase at 8.33%, while technology firms project the least optimistic growth at 5.29%. This decline in expectations, especially in prosperous sectors like tech, raises questions about future competitiveness and employee retention.
Gender Pay Gap
An ongoing issue illuminated in the PayWell 2025 study is the gender pay gap. Despite the base salaries for women and men being similar in lower income brackets, the gap widens considerably as income levels rise, predominantly affecting mid-range and high-paying positions. In particular, 74% of employees within the lowest-paid quartile are women, while only 56% exist in the highest quartile. This disparity emphasizes the need for continuous efforts in improving gender representation across higher-paying jobs.
Age and Income Trends
Another critical factor influencing salary is age. Employees in the 26-43 age group typically earn the highest average salaries, while those under 25 and above 55 experience notable drops in compensation. Such trends raise concerns about age discrimination and stagnant mobility in transition ages, affecting career development. High performers, defined as the top segment of employees, enjoy salaries that are approximately 13-20% greater than their colleagues, highlighting the importance of performance-based compensation.
Regional Disparities
Regional salary disparities also feature prominently. The Bucharest-Ilfov region boasts the highest average gross salary at RON 16,373, outpacing surrounding regions significantly, such as Moldova (RON 8,874) and Muntenia (RON 8,732). Management roles, in particular, exhibit larger pay gaps compared to operational staff, underscoring the geographic economic divide within Romania.
Employee Benefits
Turning to employee benefits, traditional perks like meal vouchers and extra days off remain highly favored, with 84% and 83% of companies respectively offering these incentives. However, the landscape of benefits is slowly evolving. Companies are increasingly focusing on employee health and well-being, offering options like office massages, individual therapy sessions, and discounts on products. While classic benefits remain important, the shift towards well-being signifies a growing recognition of the need to support employees in a challenging economic climate.
Conclusion
The findings from the PwC PayWell 2025 study provide essential insights into the state of private sector wage growth in Romania. With a projected slowdown in wage increases amid ongoing economic uncertainty and rising inflation, businesses are expected to be more cautious in their compensation strategies moving forward. As factors like the gender pay gap, age-related income disparities, and regional differences persist, it is evident that various elements continue to shape the wage landscape in Romania. Employers must be proactive, not only in leveling the playing field concerning gender and age but also in adapting to the fluctuating economic conditions that lie ahead. Balancing competitiveness with profitability will be crucial for organizations seeking to attract and retain talent in this evolving economic context.
