The Capital newspaper recently published a study on wage growth in Romania and wage differentiation between geographical areas (the famous wage cages). The average wage in Romania 2018 is certainly a source of apprehension for all companies, and therefore it is necessary to understand and anticipate its dynamics.

The macroeconomic picture (source: KPMG) sees Romania in third-last place among EU countries in the ranking of gross wages (416 euros/month), ahead of Lithuania and Bulgaria. Compared to 2017, Romania gains a position due mainly not to the effect of net wage growth but to the new government’s policy of shifting part of the contribution burden to the employee while also providing for an increase in the statutory minimum wage to sterilize the effect on the net wage.

In a nutshell, the increase in the gross minimum wage by law (1900 lei month as of January 1, 2018) is not matched by an increase in the net salary received by the employee because part of the increase is used by the employee to pay for the increase in health and pension contributions (until January 1, 2018 paid by the employer).

Which areas have the highest per capita income? The first area with the highest wage is Ilfov-Bucuresti with a gross of 5,591 lei and an average net wage of 3,555 lei. Of note is the large difference between the capital and the Ilfov district (as indeed between the countryside and the city). Second place is occupied by the “Vest” region or Timisoara-Arad-HD-CS where the average gross wage is 4,087 lei and the net 2,590. The third position is taken by the “Nord-Vest” region where Cluj manages to tow the high judets (Bihor, Satu Mare, Bistrita, Maramures, and Salaj) and narrowly overtake the central region. The average gross wage in the region with Cluj at its center is 3,904 lei for a net of 2,479 lei. Last place in the ranking is given to the “Southeast” region where the average gross wage is 3,425 lei for a net of 2,159 lei.