Gap Betw Romania’s National Net Avg Wage And Wages In Multinational Cos Narrowed In 2008 – PwC

Wages of employees in top management positions are 9.2 times higher than the national net average monthly wage, according to the study ‘PayWell-Salary and Benefits 2008’ drawn up by PricewaterhouseCoopers.

Last year’s study indicated managers earned 9.6 times the national net average wage.

The study takes into account wage data for April 2007-April 2008. The Romanian statistics board, or INS, said the net average wage in April 2008 stood at 1,282 lei (EUR1=RON3.5974). Managers earned a net monthly average of RON11,794 in April 2008.

Wages of employees on an operating and support level have come closer to the national net average. On an operating level, wages in private companies are 2.8 times higher than the national average (compared to 2.6 times higher in 2006-2007), while for employees in support departments, wages in private companies are 1.9 times higher than the national average (compared to double the national average in 2005-2006).

Compared to other Central and Eastern European countries, Romania registers the largest gap between the net average wage in private companies and the national average wage for management positions, while for other positions, the country’s wages are on a par with those in Hungary, Slovakia and the Czech Republic.

In Hungary, managers earn six times the national average, Slovakia – five times and the Czech Republic – 5.5 times. On an operating level, wages in Hungary are 2.5 times higher than the national average in Hungary, 2.4 times in the Czech Republic and 2.2 times in Slovakia. Support employees earn 1.7 times the national; average in Hungary , 1 in the Czech Republic and 1.2 in Slovakia.

"This element is very important to investors. An investor looks at wage costs before deciding to invest. However, they don’t look at wages for top management, but for operating and support staff, which are similar in Romania to wages in other analyzed countries,” PwC human resources manager Ruxandra Stoian said during a press conference.

In terms of wage structure, the PwC study indicates an increase of the variable component, granted depending on results.

"The trend of past years continues with the increase of the wage component that depends on results, and variable benefits have come to account for 20% of the net average salary, while the fixed component decreased to 65%,” Stoian said.

The wage structure also includes fixed bonuses, which accou8nt for 4% of the total, and benefits, which account for 11%.

Last year, wages were 17% variable bonuses, 69% fixed salary, 4% fixed bonuses and 10% benefits.

The study polled 187 foreign companies, the same as in 2007, in pharmaceuticals, industry, ITC, fast moving consumer goods, retail, banking, automotive industry, distribution, agriculture and chemicals, outsourcing and insurance, which employ a total 160,000 people.

Most companies included in the study have turnovers exceeding EUR10 million.