We are in a time when many budgets are “frozen”. And it seems we are all waiting to see what happens with the adoption of the new tax measures and the effects they will have. For this reason, salaries have stagnated this year or increased by lower percentages than in previous years.
According to the National Institute of Statistics, annual inflation reached 9.9% in March 2026, remaining close to double digits for several consecutive months. At the same time, PwC estimates indicate average salary increases of approximately 6% for 2026, below the inflation rate.
What do these figures mean? Even if you make efforts to adjust salaries, purchasing power continues to decline. PwC studies also show that more than half of employees believe their income barely covers their expenses, increasing pressure on companies and raising the risk of dissatisfaction and employee turnover.
As a leader or manager, you may already feel this tension within your team. People are increasingly concerned about the rising cost of living and the fact that salaries are no longer keeping pace with it. How can you support them? Read on to discover practical solutions for motivating your people when there is no budget available for higher salaries.
HOW MUCH MONEY DO PEOPLE NEED TO LIVE DECENTLY THIS YEAR?
The most recent data available is from January 2026 and was provided to the media by Friedrich Ebert Romania Foundation, the organization that calculates the value of the decent living basket each year.
According to the foundation, a family consisting of two parents and two children needed RON 11,370 to maintain a decent standard of living in September 2025. This amount increased by nearly 9% compared to September 2024, representing an additional RON 920 per month.
Factors that contributed to the increase in the total cost of the consumption basket:
- Increase in food costs: +RON 181
- Increase in housing acquisition costs: +RON 171/month
- Increase in housing-related expenses: +RON 170
- In percentage terms, housing expenses increased the most: +22.6%
Friedrich Ebert Romania Foundation reported increases across almost all spending categories.
According to the National Institute of Statistics (INS), average monthly monetary income in Q4 2025 was RON 8,863 per household (RON 3,566 per person), down 0.2% compared to Q3 2025, while in-kind income reached RON 591 per household (RON 238 per person), up 10.5% compared to Q3 2025.
Average total monthly household expenditure in Q4 2025 amounted to RON 8,075 per household (RON 3,249 per person), representing 85.4% of total income and decreasing by RON 4 per household compared to Q3 2025. Compared to Q4 of the previous year, average total monthly household expenditure increased by 11%, while per-person expenditure increased by 11.7%.
Gross salaries and other employment-related earnings totaled RON 6,466 per month per household and represented the most important source of income (68.4% of total household income, unchanged from Q3 2025).
Based on INS data, household income exceeded expenses by only RON 788. These figures reflect Q4 2025, while a new wave of price increases occurred in 2026.
We can also observe a gap of RON 2,507 between what a family needs for a decent standard of living (according to Friedrich Ebert Romania Foundation data) and what it actually earns. This indicates that many people cannot afford all necessities and are forced to cut spending in certain areas. Most often, they choose to pay off debts while reducing spending on food, clothing, personal care services, and holidays.
HOW TO MANAGE WAGES IN AN ECONOMIC CONTEXT THAT DOESN’T ALLOW YOU TO INCREASE SALARIES
BE TRANSPARENT
Most employees understand that inflation affects not only them but also your business. Some are already familiar with business financial realities through their interactions with clients. When discussing salaries, be transparent about the company’s salary budget. For example, if the budget only allows for a general increase of 4%, explain this to your colleagues. Be open about how the business is performing. When people see that you are making a genuine effort and communicating transparently, you can earn their loyalty.
When salary budgets are limited, companies need to pay much closer attention to the employee experience. People stay with organizations where they feel stability, honest communication, and genuine concern for their work-life balance.
“Sometimes flexibility, recognition, and a present, engaged leader can matter almost as much as a salary increase,” says Andreea Dumitrescu, Senior Recruitment Manager at BIA Human Capital Solutions.
CREATE PERSONALIZED BENEFITS PLANS
As inflation becomes a growing concern for your employees, one way to support them is by offering personalized benefits plans. This means allowing employees to decide which benefits they would like the company to provide.
For example, if an employee does not wish to use healthcare benefits and would rather allocate those funds toward their children’s education, the company should accommodate that request. To maintain control over costs, employers can establish a maximum amount available to each employee. This approach can significantly improve loyalty and increase employee satisfaction.
“In recruitment, we see employees paying much closer attention to the overall package offered by an employer, not just the salary. During this period of uncertainty, employers need to be more creative in how they motivate their teams. We see companies offering performance bonuses, additional days off, support for professional training courses, and even assistance with child-related expenses.
These measures show employees that the organization is making a real effort to support them, even when salary budgets are limited. It is important for employees to feel that their efforts are recognized and appreciated,” says Cristina Scărlătescu, Recruitment Manager at BIA Human Capital Solutions.
OFFER BONUSES
You may choose to offer bonuses and salary increases based on performance, even if they are smaller than those granted in previous years. Rethinking your bonus structure can be an effective way to keep regular business costs under control while still increasing employee compensation.
Consider implementing a monthly or quarterly incentive program. This structure allows employees to earn additional income based on their contribution and engagement while also generating business results. It creates a win-win situation for both employees and the company.
HELP your employees WITH EVERYDAY EXPENSES
Even if you cannot offer higher salaries, you can still provide financial support to employees. Partner with local businesses and offer fuel cards, shopping discounts, or restaurant discounts. You can also help cover part of the childcare costs. Another option is to provide a one-time bonus based on cost-of-living needs.
OFFER FLEXIBILITY
Give employees greater control over their schedules and working environment. For example, allow them to choose their work-from-home days, designate a day when the entire team works remotely, or introduce flexible start and finish times.
This can help employees reduce transportation and childcare costs. Flexible working arrangements also help people manage their time more effectively and reduce the need for paid leave.
IMPLEMENT A FINANCIAL WELL-BEING PROGRAM
An effective way to support employees who are concerned about inflation is to offer a financial well-being program. This can help them make more informed decisions about their financial future and improve the way they manage their money.
Such programs may include access to financial advisors, financial education courses, or credit counseling services
Work with a Recruitment Team That Has Expertise in Salary Negotiations
The BIA Human Capital Solutions team has more than 34 years of recruitment experience and can provide valuable business support. We want you to have more time to focus on your team, and we continuously strive to find the best solutions for attracting new employees and negotiating competitive salary packages.
RESULTS AND BENEFITS OFFERED BY BIA HCS
✅ Reduced recruitment time — some positions are filled within 2–5 days;
✅ Expertise across multiple industries: accounting, construction, retail, healthcare, pharmaceuticals, automotive, and architecture;
✅ 80% of our clients return to work with us year after year;
✅ We manage the entire recruitment process;
✅ We provide support with job offers, salary negotiations, and onboarding;
✅ We offer a guarantee: if a candidate leaves during the probation period, we restart the recruitment process.
📩 Tell us about your business and the solutions you need at biaoffice@bia.ro
📞 Or call us at 0727 500 366
SALARIES IN 2026: WHAT YOU SHOULD KNOW
WHAT IS THE AVERAGE SALARY INCREASE IN 2026?
In Romania, the pace of salary growth has slowed noticeably in 2026 following the rapid increases seen between 2022 and 2024.
According to data published by the National Institute of Statistics, the average net salary reached approximately RON 5,557 in February 2026, representing a slight increase (+0.7%) compared to the previous month and 3.8% compared to the same period in 2025. The average gross salary reached RON 9,272 in February 2026.
However, annual inflation exceeded 9% during the first months of 2026, meaning that real purchasing power declined even though salaries increased nominally. In practice, many companies are implementing more cautious salary increases than in previous years due to economic pressures and rising operating costs.
In major economic centers such as Bucharest, Cluj-Napoca, and Timișoara, salaries continue to grow faster than the national average, particularly in sectors such as financial services, engineering, IT, and consulting.
WHAT IS A GOOD SALARY INCREASE PERCENTAGE IN 2026?
In the current economic climate, a salary increase of 3%–4% is considered standard in many Romanian companies. However, given the high inflation rate and rising cost of living, such an increase is no longer sufficient to maintain the same purchasing power.
Data regarding the minimum basket required for a decent standard of living, calculated by Friedrich Ebert Romania Foundation, shows that a family with two adults and two children needed more than RON 11,300 per month in 2025.
What salary increases are forecast for 2026?
Forecasts for 2026 indicate a slowdown in salary growth compared to previous years. According to analyses published by ZF.ro and Economica.net, most companies in Romania have budgeted salary increases between 4% and 6% this year, in an economic environment characterized by high inflation and increasing cost pressures.
At the same time, the government continues to adjust the minimum wage in line with European directives regarding adequate minimum wages. As a result, the gross minimum wage is expected to increase from RON 4,050 to RON 4,325 starting July 1, 2026, representing a 6.8% increase. Approximately 1.7 million employees in Romania will benefit from this adjustment.
According to data analyzed by ZF.ro, Romania remains among the EU countries with the lowest nominal minimum wages. However, the gap narrows when purchasing power is taken into account. For example, Romania’s minimum wage is lower than that of countries such as Germany, France, or the Netherlands when measured purely in euro terms. However, living costs in Romania—including rent, services, certain food products, and utilities—are also lower than in Western Europe.
Even though you cannot control the economic environment or your company’s budget, you can control how you communicate and how you support your colleagues during this period. In many cases, transparency, flexibility, and practical support matter more than general promises.
Employees understand the company’s situation when leaders demonstrate honesty and genuine involvement. The organizations that succeed in retaining their people during this period are those that look for practical solutions rather than ignoring the financial pressures their teams are experiencing.
Sources for the Article on Salaries
https://insse.ro/cms/sites/default/files/com_presa/com_pdf/cs02r26.pdf
https://sba.thehartford.com/managing-employees/hiring/salary-inflation/
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