Average Salary in Romania in 2024

Author: Madalina Roman

23 August 2024

In 2024, the average salary in Romania is around 100,260 RON per year. In May 2024, the average salary every month was 8355 RON, which is equivalent to USD 1,865.79. ( Source: National Institute of Statistics).

In this article, I’ll shed light on average salaries in Romania by industry, region, and gender so you can gain a comprehensive view of the earnings in Romania.

Key takeaways

Average annual salary: 100,260 RON (USD 22,468.23)
Average monthly salary: 8,355 RON (USD 1,865.79)
Median salary: 8,130 RON (USD1,818)
Minimum hourly wage: 22,024 RON/hour (USD 4,94)
Minimum monthly salary: 3,700 RON (USD 826.85)
Gender pay gap: 4,5%

Average salary in Romania

In 2024, the average salary in Romania is 100,260 RON per year, which is USD 22,385.49.

By breaking this down, Romanians earn 8355 RON (USD 1,865.79) per month at 52,21 RON per hour, which is equivalent to an average wage of USD 11,7. Note that the amount mentioned is the average gross salary in Romania.

Median salary

The median salary represents the middle point of a salary distribution, with half of workers earning less and half earning more. Unlike the average salary, which can be skewed by extremely high or low wages, the median provides a more accurate representation of the typical income.

Understanding the median salary gives you a clearer picture of the general earnings landscape in Romania. The median salary in Romania is 8,130 RON (USD1,818), which means that half of the Romanians typically have a monthly salary above this figure, while the other half wins below 8,130 RON monthly.

Minimum wages

The minimum wage, just as the name reflects, is the lowest amount employees gain in a country. Starting with July 1st, 2024, the minimum wage in Romania increased to 3.700 RON on a monthly basis, the equivalent of USD 826.37.

The government regulates the minimum wage in Romania and has seen considerable increases in the last years, particularly due to economic development. It’s important to note that even if the minimum wage is set at a national level, urban and rural areas may have some disparities, and rural areas might see lower minimum wages as they also have lower living costs.

Alongside the minimum wage, in Romania, employers also have to cover national health insurance, income tax, and social security benefits.

Factors impacting average salary in Romania

Region – Urban areas, particularly the capital city Bucharest and other major cities, generally offer higher salaries than rural areas.
Domain of expertise – Industries such as IT, energy, and production tend to have higher wage levels than sectors like manufacturing, accounting, and sales.
Education level – Higher education degrees, such as university degrees and specialized training, often correlate with increased earning potential in the job market, and this applies to Romania, too.
Gender gap – Despite progress in recent years, there remains a difference in average salaries between men and women in Romania, with women often earning less than their male counterparts in similar positions. However, note that in Romania, the gender gap is much lower than in most European countries.

Salary by region

Romanian average salaries differ based on the geographic location in which someone is based. The higher salaries are found in the capital, Bucharest, followed by the city that became a tech hub, Cluj Napoca, Timis region, Sibiu, and Ilfov.

All these regions are primarily urban, with high economic activity and development, with a higher concentration of multinational companies and startups. The average wages we’re seeing in these regions of Romania offer a better standard of living and a competitive job market, whereas the rural areas lack some of these opportunities.

Rural areas, however, have lower average salaries due to their reliance on agriculture or traditional industries, which pay less than urban high-tech and service sectors.

Salaries by domain of expertise

As in every country, in Romania, salaries vary based on the domain someone is specialized in. The highest-paying industries typically require specialized skills and higher education and are in high demand.

According to the largest online employee community in Romania, Undelucram.ro, the IT and telecommunications sector consistently ranks among the top, with software developers, programmers, and IT professionals gaining some of the highest salaries in the country.

In 2023, the biggest salary registered on the above-mentioned platform was in IT, namely 33.000 RON ( net salary). Followed by IT, the energy and production sectors had considerable average wages as well as salary increases. The lowest average wages were in accounting, administrative and operations, and sales, according to data provided by over one million users of Undelucram.ro.

Department	Minimum net salary (RON)	Medium net salary (RON)	Maximum net salary (RON)
IT	2,650	7,654	33,000
Energy	2,690	6,860	17,740
Production	2,050	4,410	16,500
Sales	2,100	4,129	15,150
HR	2,200	4,821	15,000
Marketing	2,200	5,025	14,800
Acquisitions	2,450	5,290	12,600
Legal services	2,300	5,229	12,000
Administrative and operations	2,100	4,462	10,100
Accounting	2,350	4,944	10,000
Support services	2,100	3,949	10,000

Source: Undelucram.ro

Average salary by education level

Research conducted by Salaryexplorer.com reveals that in Romania, education plays a significant role in determining an individual’s earning potential. There is no national average wage revealed in studies for skilled labor with various levels of college degrees, but research indicates that earnings are higher.

By examining the salaries of professionals with different levels of college degrees but similar positions across various industries, the study revealed salary discrepancies. The findings revealed a clear correlation between higher education and increased income.

On average, individuals who completed a certificate or diploma program earned 17% more than those with only a high school education. The income gap widened further for those with higher degrees. Professionals with a Bachelor’s Degree earned 24% more than those with a certificate or diploma, while those with a Master’s Degree saw a 29% increase over their counterparts with a Bachelor’s.

At the top end of the educational spectrum, individuals with a PhD had salaries 23% higher than those with a Master’s Degree in the same job roles. These results emphasize the substantial financial benefits of pursuing higher education in Romania and shed light on the significant income disparities that exist based on higher education.

The salary gender gap in Romania

In 2022, the gap between the wages of men and women in Romania was, according to Eurostat, the smallest one among European countries. The salary gap in Romania was at 4,5%, whereas the European Union level was at 12,7%.

Nonetheless, the gap between the employment rate for men and women was 18,3%, ranking fourth in the EU, where the recorded average was 11,6%.

The relationship between the small wage gap and the large employment rate gap might not reflect the full picture, according to The European Institute for Gender Equality. I need to mention that the above-mentioned institute revealed in the 2019 annual report the fact that in Romania, only highly-skilled women, relative to the country’s skill distribution, are active in the labor market. In contrast, low-skilled women are not formally employed.

Hence, Romannia’s gender gap may seem low; however, there is a long way to go to close the disparities between unskilled and skilled labor and bring all women to work.

Salary increases in Romania

The latest data (May 2024) from Romania’s National Institute of Statistics reveal the latest increases and decreases in salaries in Romania.

The highest values of the average net salary were recorded in IT services (11,253 RON), keeping software developers in the highest-paying category, while the lowest was in the clothing manufacturing sector (2,784 RON). Compared to May of the previous year, the average net salary increased by 12.7%. The real salary earnings index, which considers inflation in the final calculation, was 107.2% in May 2024 compared to May 2023.

The highest salary increase in the economy over a year was in education, with a 28% increase compared to May 2023.

Here are the top 10 highest increases in salary income over the last 12 months:

Education: 4,816 → 6,163 (28%)
Storage and auxiliary transport activities: 5,328 → 6,772 (27%)
Chemicals manufacturing and chemical products: 4,421 → 5,392 (22%)
Hotels and restaurants: 2,449 → 2,984 (22%)
Other industrial activities: 3,116 → 3,789 (22%)
Repair and maintenance of machinery and equipment: 4,257 → 5,152 (21%)
Extraction of hard and soft coal: 6,248 → 7,464 (19%)
Transportation and storage: 4,257 → 5,071 (19%)
Other service activities: 2,859 → 3,397 (19%)
Real estate transactions: 3,850 → 4,535 (18%)

On the other side of the spectrum, the salary dynamics were even negative in some cases, with very small salary increases. Out of the entire economy, as calculated by the National Institute of Statistics (INS), several salaries stagnated, and only one decreased nominally.

These are the ten areas or industries with small salary levels increase over a year:

Research and development: 6,597 → 6,897 (5%)
Insurance, reinsurance, and pension fund activities: 7,851 → 8,156 (4%)
Manufacture of wearing apparel: 2,734 → 2,784 (2%)
Mining of metal ores: 5,067 → 5,157 (2%)
Extraction of crude petroleum and natural gas: 9,238 → 9,321 (1%)
Publishing activities: 8,876 → 8,921 (1%)
Printing and reproduction of recorded media: 4,226 → 4,218 (0%)
Forestry and logging, fishing and aquaculture: 4,308 → 4,290 (0%)
Manufacture of other transport equipment: 5,081 → 5,057 (0%)
Water transport: 5,795 → 5,682 (-2%)

Comparison with other countries

When comparing average salaries in Romania to those in other European countries, significant differences rise up, particularly between Western and Eastern Europe.

Countries like Germany, France, and the United Kingdom, with their robust economies and higher costs of living, typically offer substantially higher average salaries than Romania. This disparity can be attributed to a combination of historical, economic, and developmental factors.

Western European countries have long-established market economies, advanced infrastructure, and a highly skilled workforce, which contribute to higher productivity and, consequently, higher wages.

In contrast, Romania and other Eastern European countries have undergone significant economic transitions in recent decades, moving from centrally planned to market-based economies. While these countries have made considerable progress, they still face challenges in terms of infrastructure development, productivity levels, and attracting foreign investment, which can impact average salary levels.

Additionally, the cost of living in Romania is generally lower than in Western European countries, which can balance the overall quality of life for workers despite lower nominal salaries.

Cost of labor for employers

Low wages and small employer share in social security contributions make Romania an attractive hiring country for businesses based in other European countries. When considering the cost of labor in Romania, you should be aware of the following labor costs:

Income tax: Taxable income in Romania is at a 10% flat rate. Income from employment in R&D, software development, and construction has been exempt from income tax for many years in Romania.
Social security contributions: Employers are responsible for a 2.25% contribution to employment insurance, with an additional 4-8% pension contribution for employees with special working conditions. Employees, on the other hand, contribute 25% to pension insurance and 10% to health insurance.
Minimum wage: As of July 1st, 2024, the minimum wage in Romania increased to 3.700 RON per month, applicable to all employees except those in the construction sector, where the monthly minimum wage is RON 4.582.
Overtime pay: Employees who work overtime are entitled to either 175% of their normal wages (200% for public holidays) or additional paid time off within 60 days.
Annual leave: Employers must provide a minimum of 20 days of paid annual leave, in addition to 15 national public holidays.
Maternity leave: New mothers are entitled to 126 days of maternity leave (63 days before and 63 days after birth), paid by social security at a rate of 85% of their normal wages.
Sick leave: Employers are required to pay for the first five days of an employee’s sick leave, after which Social Security refunds payments. Sick leave allowance ranges from 75% to 100% of the employee’s wages, depending on the type of illness.

These costs, along with other mandatory benefits, contribute to the overall cost of labor for employers in Romania.

FAQ

Which industries offer the highest salaries in Romania?

The highest-paying industries in Romania include IT, finance, engineering, and healthcare. Tech-related fields, in particular, offer competitive salaries, especially in the biggest urban centers like Bucharest, Cluj-Napoca, and Timișoara.

How does work experience influence salary in Romania?

Work experience plays a pivotal role in determining salary levels. Generally, more experienced professionals have higher salaries, with significant jumps seen after 5-10 years in a job role.

How do salaries in Bucharest compare to those in the rest of Romania?

Salaries in Bucharest are generally higher than in other parts of Romania due to the concentration of multinational companies and better economic opportunities. On average, salaries in Bucharest can be 20-30% higher than the national average.

How do taxes affect take-home salaries in Romania?

Romania has a flat income tax rate of 10%. In addition to income tax, employees contribute to social security and health insurance, which affects the net take-home salary. The average net salary is about 65-70% of the gross salary.

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