FinMin: Gross average wage up 5.2 percent in 2014

The gross average wage will be 5.2 percent higher in 2014, on a 2013 basis, according to the forecast used for the budget review; the figure is significantly higher than the end-2014 inflation forecast of the National Bank of Romania (BNR, the central bank), the Ministry of Public Finance mentioned in a release answering media reports on lower wages this year.

The forecast used for the budget review was recently approved by the government; it is also the basis for the convergence programme sent to the European Commission, which approved it in April 2014.

The latest inflation report of BNR has estimated on August 6 a 2.2 percent inflation at the end of this year.

'Taking into account these evolutions, we note an increase in terms of purchase power of households. In nominal terms, the expected increase is 113 lei (from 2,166 lei in 2013 to 2,279 lei in 2014), the highest of the last years. We also mention that over the first 6 months of 2014 (data of the monthly inquiry), the gross average monthly wage advanced by 5 percent in nominal terms. Therefore, the wages will not decrease, but increase by more than 5 percent, and — significantly — by more than the inflation, especially in the private sector, in correlation with the outstanding economic performances (in the competitive sector, over the first 6 months the gross average monthly wage advanced by 5.9 percent),' the ministry points out.

The resulting purchasing power of the employees improved by 3.9 percent over the first 6 months of 2014, according to the document.AGERPRES