Average net salary dropped 2.7% in May, to 5,684 RON. Analyst: wages remain below inflation

The National Institute of Statistics (INS) has announced that in May, the average gross salary was 9,483 RON, down 257 RON (2.6%) compared to April. The average net salary fell by 159 RON (2.7%), reaching 5,684 RON.

Compared to May last year, the average net salary grew by 3.2%, but the real wage index stood at just 93.1%. In practice, incomes remained below the inflation rate, and the population's purchasing power continued to decline.

According to the INS, the drop in salaries in May was due, across most economic sectors, to the cessation of occasional bonus payments — quarterly, annual, Easter, or performance-related bonuses — as well as benefits in kind, financial assistance, or amounts drawn from net profit or other funds. In other sectors, the reductions were caused by production targets not being met or by lower revenues, depending on ongoing contracts and projects.

Where salaries fell and where they rose

The largest decline in average net salary was recorded in insurance, reinsurance, and pension fund activities, where wages fell by 29.8%. Reductions of between 10% and 20% were also recorded in: crude oil and natural gas extraction, rental and leasing, motor vehicle manufacturing, telecommunications, the tobacco industry, the pharmaceutical industry, and the manufacture of coke and refined petroleum products.

By contrast, the largest increases were reported in metallic ore mining (+22.4%), as well as in machinery and equipment manufacturing, computer and electronic and optical product manufacturing, air transport, and other sectors where bonuses were awarded or higher revenues were recorded.

In the public sector, compared to the previous month, the average net salary increased in education (+2.4%) and public administration (+0.5%), whilst in health and social care it fell slightly, by 0.5%.

The highest average net salaries were recorded in computer programming and information technology consultancy activities — 13,150 RON — followed by crude oil and natural gas extraction.

Analyst: "A significant collapse in purchasing power"

Economic analyst Adrian Negrescu told Digi24.ro that the INS data confirm that, although salaries have grown nominally compared to last year, they have failed to keep pace with inflation.

"The statistical data confirm the significant collapse in the population's purchasing power. Wage increases falling below the inflation rate represent a direct path towards the impoverishment of the majority of the population, given that over 50% — more than half of Romania's population — earns no more than 3,500–4,000 RON net per month. What we see in the National Institute of Statistics data represents an average of wage earnings, made up of the highest and lowest salaries. But unfortunately, the median shows that the wage level in Romania is still very low, relative to the enormous inflation rate, which is three times above the European average," said Negrescu.

The analyst also cautioned that he sees no signs that salaries could outpace inflation over the next 12 months, meaning the erosion of purchasing power could continue.