Regional Wage Differences In Romania To Level On Investments

"Differences may occur in all sectors and for all jobs. Regional differences range from EUR100 to EUR500 for the same job in the same industry. For instance, if in Bucharest the average salary for a worker starts at a monthly net 1,000 lei (EUR1=RON3.6658), Romania still has many regions where the starting salary is the minimum per economy (RON500 – e.n.),” Gina Dobric, general manager of Human Capital Solutions (HSC) Group, told MEDIAFAX.

However, Dobric said, employees of companies with offices throughout the country are an exception as their salary grid is well defined, regardless of the region where the office is located.
Monica Georgescu, managing consultant of HR company Lugera & Makler, said regional differences are significant only in certain sectors, such as banking, where employees’ salaries in the country is some 20% lower than in Bucharest.

"Romania has salary differences dictated by the region where employees are. These differences shouldn’t be generalized, as there are examples of companies in the country that offer competitive salaries, such as multinationals in retail, automotive, pharmaceuticals or electronics," Georgescu said.

The main cause triggering such differences, said Dobric, is the low unemployment rate registered in Bucharest, which forces employers to offer high salaries to keep their employees.

Experts say such differences will even out in the medium term on the need for specialists locally, who may be recruited from among those working in Bucharest. Moreover, large companies tend to even out salaries.

"These differences will be nearly gone. Salaries are in competition with those in Bucharest and if one wants to attract a candidate with a certain level of training, one needs o offer that candidate a tempting salary to get him to relocate,” said Eliza Nechifor, marketing & communication coordinator of HR firm Manpower.

Nechifor added companies in IT, banking, engineering, management and constructions are confronted with a lack of experts or managers and resort to relocating those in Bucharest. Employers therefore have to offer benefits and competitive salaries.

On the other hand, Georgescu said evening out salaries in Bucharest and the rest of the country will be a long and costly process.

Dobric said regional differences would disappear along with heavier investment locally.

"Most likely, differences will remain, with some exceptions. In some counties, where economic concentrations are already being formed, salaries are on a par with those in Bucharest. In other counties, salaries will remain low as long as business initiatives and investments stay the same," she said.

According to the report "Employer of choice" drafted by Daedalus Consulting, last year, young people aged 19 to 28 in Bucharest earned 37.5% more than those in the rest of the country. While the average net salary of young people in Bucharest stood at EUR436, throughout the rest of the country, the average net salary stood at EUR317.