The average salary increase rate in the private sector in Romania was of 5.1%, according to this year's edition of PayWell Romania salary and benefits study

Bucharest ‑ 27 September 2011 - The average salary increase rate in the private sector in Romania was of 5.1% this year, according to the 2011 edition of the salary and benefits study conducted by the Human Resource Consulting department of PwC Romania. Although the salary increase rate is higher than in 2010 (4.3%), the real level of growth was below the projections made at the beginning of the year, when companies were aiming for an average salary increase of 6.8%.

According to the results of the study, almost half of the participating companies have already performed salary increases in 2011; while one third plan to implement them by the end of the year. In the same time, 23% of the participating companies either do not plan to increase wages or have not made any decision in this respect.

"Data presented in the PayWell study indicate that the Romanian firms have overcome the survival mentality applied during the recession period, the average salary increase performed this year being around the same level as the forecasted inflation rate. One notices that those sectors having collective labour agreements in place, which correlate the salary increase rates with the inflation level, (such as industrial products or the automotive industry), were also the ones that operated the highest salary increases in 2011 ", stated Peter de Ruiter, Partner, Tax and Legal Services Leader, PwC Romania.

Almost 60% of the participating companies have budgeted salary increases for 2012, with an average rate of 6.8%.

"Industrial sectors that have navigated safely through the economic crisis, generally the ones having a large export component (such as industrial products and automotive), reported above average wage increases, while industries that were deeply connected with the evolutions of the internal market (such as retail and financial services) reported modest wage evolution, below the forecasted inflation level", added Peter de Ruiter.

According to PayWell Romania 2011 , the average salary increase in the automotive production sector was of 8.9% in 2011, in industrial products of 7.2%, while in retail, the average wage increase was of only 2.4% and in the banking sector of 2.9%.

In regards with bonuses granted on top of the salary, PayWell Romania 2011 study concludes that 66% of the Romanian companies offer fix bonuses (independent of organisation's and / or employee's performance). In this case, there was a slight decrease in the number of companies that grant such bonuses in comparison to the past few years. These bonuses are given mostly in connection with the winter holidays, Easter and the annual holiday.

Performance bonuses are granted mostly to employees in managerial positions. In 2011, companies have set a variable pay target of approximately two salaries, while the amounts paid have been around one salary and a half, more than in 2010, when the variable pay was of only one monthly salary.

The conclusions of PayWell Romania 2011 study, as well as those of Saratoga study, analysing specific Human Capital effectiveness indicators, will be broadly presented in the Human Resources conference organized by PwC Romania in the second half of October.

PayWell Romania 2011 salary and benefits study comprises compensation data provided by more than 150 companies across 9 industry sectors (Automotive Manufacturing; Banking; Food, Beverage & Distribution; Industrial Products; IT; Leasing; Pharmaceuticals, Retail, Outsourcing and Service centres). A number of customised analyses and reports, based on the geographical location, headcount and revenue of the participating companies can also be derived from PayWell study, The qualitative part of the report comprises information on specific compensation policies (e.g. salary increases, fixed and variable bonuses) and analysis of more than twenty benefits available on the market, from company car to meal tickets. .

The depth and spread of the report, its tenure and the number of organisations involved make PayWell the number one thought leadership instrument available on remuneration in Romania.

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