Private Sector Salaries Stagnated Last Year, While Bonus Values Increased Slightly, on Average by 4% Compared to 2018
According to the Smartree Workforce Index, a tool for analyzing the Romanian labor market, in 2019, private sector employees received approximately the same salaries as in 2018, with slightly higher bonuses compared to the same period last year.
Average salaries in the private sector increased in the first quarter of 2019 due to the rise in the minimum wage, but overall, the year saw stagnation. The distribution of salary evolution was uneven across the four quarters of the year—with the highest increase of around 6% recorded in Q1 (January-March 2019), but a decrease in the last quarter of the year (October-December 2019). The main industries where salaries increased include automotive component manufacturing, the pharmaceutical sector, and software development.
Additionally, the number of hires increased by an average of 13% during this period, mainly due to a favorable macroeconomic context and the economic growth recorded in the first quarter of the year.
Industries where the number of employees grew steadily include automotive research and development centers, BPO (Business Process Outsourcing), and software development. These market segments are already known for their continuous expansion and for offering salaries above the average of other sectors. However, hiring also took place in retail and pharmaceuticals. Industries where the number of hires remained constant in the first part of the year were textiles, building materials, and financial services,” said Adrian Stanciu, CEO of Smartree.
The State of the Economy Improved by Over 11 Percent
Among the companies analyzed, the “State of the Economy” indicator, composed of the evolution of employee numbers and salary increases, grew by over 10%.
Romanians working in the private sector took more vacation and sick leave days in the last six months. Specifically, these increased by 15% and 6%, respectively, compared to the same period in 2016. The average bonuses offered by companies followed the same positive trend, with a 13% increase in the first part of the year. Consequently, employee well-being also increased by the same percentage.
To create the Smartree Workforce Index, a tool that provides a summary of recruitment trends, salary growth, and employee well-being, data from over 200 companies operating in various private sector industries with an average business turnover of over 2.5 billion euros was analyzed.
The “State of the Economy” index is composed of the evolution of employee numbers and salary increases in the analyzed companies at the national level.
The analysis considered all types of employment contracts (fixed-term or indefinite, full-time, or part-time). Regarding salary, this refers to the net pay (what the employee receives at the end of the month after deductions for contributions, taxes, and any withholdings).
The “Employee Well-being” index is built on three indicators that reflect the well-being of employees in the analyzed companies: vacation days, sick leave days, and the value of bonuses received.