Average real wages in Romania shrink for third consecutive quarter, by 5.2% y/y in Q1

The annual growth of the net average wage in Romania eased to +3.9% y/y to RON 5,671 (EUR 1,113) in Q1, from 4.4% y/y in Q4, 2025, and 9.7% y/y in Q1, 2025, according to data published by the statistics office INS. Adjusted for inflation, the real advance of the net wages remained for the third consecutive quarter in the negative area with a solid -5.2% y/y not far from the -4.9% y/y in Q4 and -4.2% y/y in Q3.

Wages in public administration contracted nominally by 4.9% y/y, while those in education by 3.9% y/y. The wages in the healthcare sector remained roughly stable (-0.1% y/y) in Q1.

When expressed in euros, the average net wage in Romania maintains a marginal (+1.5% y/y) annual advance – explained by the local currency’s nominal stability (real appreciation). This is, however, below the average inflation in the euro area.

Households’ thinner incomes already surfaced in the weaker private consumption readings, with an impact on the overall GDP. Retail sales contracted by 5.8% y/y in Q3, marking the third consecutive quarter of negative growth. The period coincides with the higher inflation, fiscal consolidation efforts, and negative quarterly dynamics of GDP.

iulian@romania-insider.com

(Photo source: Aaron Amat/Dreamstime.com)


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