“In the economic growth period of 2006-2008, real wage raises were higher than estimated at the beginning of the year or the year before, and were 5-10 percentage points above the inflation rate. For 2009-2011, there is no real wage growth as in most cases raises merely covered the inflation rate,” said Nicoleta Dumitru, senior consultant with PwC, said Tuesday at the presentation of the company’s Paywell 2011 survey.
In 2010, companies raised wages 4.3% instead of the planned 6.4%, and their budgets estimated wages higher by 10.2% compared with 2009. In 2009-2010, actual wage increases were below the level of inflation, which stood at 8%. For 2011, things are more balanced, according to PwC, as wages have been increased 5.1%, and the inflation rate is at 4.6%.
The survey also notes a higher lag between planned and actual wage raises. Wage policies were also influenced by the country’s economic growth and unemployment figures.
“In the past five years, we can distinguish between two periods. One is 2006-2008, with significant and real wage growth, GDP growth and lower inflation, and the 2009-2011 period, with no real wage hikes, at most covering inflation, a rising unemployment rate and GDP downturn,” Dumitru also said.
The 15th edition of the PayWell Romania survey included 152 companies in nine sectors of activity, 80% of which have foreign capital and 50% of which have a sales figure of over EUR50 million.