Overall, the companies surveyed targeted for 2017 an average increase in wages, of 4.8%, but the actual increase was slightly higher than the initial forecast.
„Staying within the targeted expenses is very important for private companies, because exceeding this threshold can affect the profitability and investment plans. In 2017, there were no significant gaps between wage raises planned by companies and those actually granted. It is very important that the private sector managed to keep a high level of predictability regarding these expenses over the last two years, in the context of legislative changes and the increase in public sector wages”, said Ionut Simion, Country Managing Partner, PwC Romania.
Only the companies in the industrial sector failed to stay within this year’s target, as wages were raised by 7.5%, versus the 5.6% previously forecast. Wage raises higher than those targeted initially were also registered in the retail and hotel sectors, namely, 6.3% and 7%, respectively.
The banking sector saw the lowest advance in the private sector, of just 2.1%, which is lower than the 3.3% previously forecast and the 3.2% level registered in 2016.
By categories of employees, the unskilled or low- skilled staff (workers, operators etc.) saw the biggest wage raises in 2017, of 6.7%. At the opposite end of scale, the top management staff saw the lowest advance in 2017, with an average of 4.5%.
In 2018, wage raise plans keep the same trend, expecting an increase of 5.7% for workers and of 4.5% for company top managers and for sales department staff, according to PwC.
For most categories of employees, the performance bonus paid in 2017 was higher than the level initially envisaged by companies.
Meal tickets, preferred last year by over 70% of companies, have lost ground and are currently granted by little over 60% of the participants in the study.
The PayWell Romania salary and benefit study was conducted by PwC Romania on a sample of approximately 100 private companies in the financial-banking, pharmaceutical, industrial, retail and hotel sectors.
PwC provides audit, fiscal and business consulting services.