Respondents estimated the salary growth rate will be maintained by the end of the year. Reported wage increases are in line with estimates indicated for 2020 in the Paywell 2019 survey.
For 2021, private companies estimate an average gross wage growth of 4.68%.
“Wage increases in the first half of this year were granted on the backdrop of good performance registered in 2019. While it appears the growth trend will continue, the growth rate will be lower as most companies are drafting more conservative budgets due to global economic uncertainty prompted by the pandemic crisis,” said Ionut Simion, Country Managing Partner at PwC Romania.
By industries, the retail sector recorded the biggest average wage increase in the first half of 2020, of 9.87%, followed by the banking sector with 7.39%. The pharmaceutical industry recorded below-average wage increases, of just 4.17%.
By employee categories, wages of unskilled or low-skilled personnel grew by an average 7.32% in the first half of 2020, while operational management positions recorded 7% growth and top management positions recorded 6.72% wage growth. The lowest wage increases, of 6.6%, targeted administrative staff, technicians and inexperienced employees.
In terms of benefits, meal vouchers, additional annual leave days, private health care subscriptions, free coffee and soft drinks and occasional bonuses remain the most popular.
To reduce costs since the onset of the COVID-19 pandemic, 49% of companies surveyed implemented remote work, 29% implemented working in shifts, 5% reduced working hours and 5% put employees on furlough.
The PayWell Romania 2020 survey polled 52 private companies in finance-banking, pharmaceutical and retail industries.