Salary growth rate likely to slow as of 2010

A significant salary rise is expected next year due to the 2009 presidential election, with wages up grow in election years. The same will happen in 2008, when general elections will take place.

In spite of a slower pace, salaries will keep increasing, to narrow the gap between Romania and EU’s developed countries. 

“It is hard to believe salaries will keep increasing by 25 percent in the coming years. The competition between political parties is leading to abnormal salary hikes in the public sector,” Croitoru said. Furthermore, he added that growth was significantly above labor productivity.

In July, the average net salary amounted to €366, some 2.7 percent higher month-on-month, and 25.8 percent higher year-on-year, due to sound economic growth and a local market labor shortage.