NIS: Average net salary rose by 5.5%, but inflation reduced purchasing power by 2.5%

Romania’s average net salary reached 5,820 lei in July, up 5.5% from the same period last year, according to data released Friday by the National Institute of Statistics. The increase was nevertheless outpaced by inflation, which reached 8.16%, causing employees’ purchasing power to decline by approximately 2.5%.

The highest net incomes were recorded in computer programming and consultancy, where the average was 13,464 lei, and in the extraction of crude petroleum and natural gas, at 13,140 lei. At the other end of the scale, the lowest salaries were reported in “other service activities” – 2,986 lei – and in fishing and aquaculture, at 3,023 lei.

Real-terms declines affected numerous professional categories. Employees in the legal sector lost almost 12% of their purchasing power, while teachers lost nearly 7%. In the case of doctors and nurses, real incomes fell by 7.7%. Even employees in IT, who received a nominal increase of 7.2%, were approximately 1% poorer after adjustment for inflation.

According to an analysis by Erste Bank, Romania is a regional exception, with real wages falling by more than 2% in July. Experts warn that high inflation and fiscal consolidation will continue to reduce household consumption.