Romania’s average net wage (chart) posted its weakest real-terms growth in over a year in April, marking a shift from nearly two years of rapid income expansion, the National Institute of Statistics reported.

Adjusted for inflation using the Consumer Price Index (CPI), net wages rose by just 3.5% year-on-year in April— the lowest growth rate since April 2023. In nominal terms, net wages advanced by 9.9% compared to a year earlier, the second-lowest annual growth rate recorded since 2021.

The average monthly net wage reached RON5,198 (€1,135) in April. While wage levels remain above pre-pandemic benchmarks, April’s data signals a turning point as broader economic pressures begin to weigh on household earnings.

Over the three years to April 2025, Romania's average net wage increased by 15.5% in real terms and by 41% in euro terms, reflecting respective annual average growth rates of 4.9% and 12.2%. The sharper appreciation in euro terms was driven by Romania's stable exchange rate and domestic price increases that lifted the leu's real value.

The slowdown in wage growth is expected to continue through the remainder of the year. With economic momentum weakening and the government considering VAT hikes under its fiscal consolidation plan, real incomes are likely to come under additional strain. Regardless of the final form of the fiscal plan, households face deteriorating purchasing power.

Romania’s National Commission for Strategy and Prognosis (CNP) projected in its Spring Forecast published on May 14 that net wages would rise by only 1.3% in real terms in 2025, a sharp drop from the 8.3% increase recorded in 2024.