About half of the companies which participated in the survey have already raised employees’ wages, while a third of them plan to increase salaries by the end of the year. On the other hand, 23% of the companies included in the survey have no intention to hike wages or have not yet taken a decision on this matter.
“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 labor 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 “, said Peter de Ruiter, PwC Romania Partner, Tax and Legal Services Leader.
Almost 60% companies have budgeted salary increases for next year, with an average rate of 6.8%, reveals the PayWell study.
“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 de Ruiter.
The average salary increase rate in the auto sector in 2011 was 8.9%, 7.2% in industrial production, 2.4% in the retail sector and 2.9% in the financial service sector.
Regarding bonuses, the survey shows that 66% of companies in Romania offer fixed bonuses, mainly at Christmas and Easter.
Performance bonuses are generally granted to managers. In 2011, companies have set a pay target of about two salaries, while the sum paid did not exceed a salary and a half.
The conclusions of the survey will be detailed in a conference on human resources PwC Romania will organize in the second half of October.
The PayWell survey analyzes data provided by over 150 companies in nine sectors (the auto sector; banking; food, beverage and distribution; industrial production; IT; leasing; pharmaceuticals, retail, outsourcing and service centers).
PwC offers financial audit services, as well as fiscal and business consultancy.