PayWell 2020: Private sector gross wages increased by a year-on-year average of 4.52% in the first half of 2020, down from initial forecasts
Bucharest / Kishinev, 12 November 2020 The gross wages at private companies increased by a year-on-year average of 4,52% in the first six months of 2020, according to PwC Moldova’s PayWell Salary 2020 Survey. That’s lower than the initial forecast of 5,98% for 2020 and the 7,65% increase recorded in 2019.
"The survey reflects an ongoing trend in the Moldovan economy, which slowed to 3.6% growth in 2019, from 4% in 2018. However, we note that despite the crisis caused by the COVID-19 pandemic and other problems, such as labor migration, companies have maintained their salary increase budgets. For 2020, the World Bank estimates a 5.2% decrease in the Republic of Moldova economy, similar to other countries in the region. In the future, as in all states affected by the pandemic, government policies will be needed to support faster economic recovery", said Ionut Simion, Country Managing Partner PwC Romania and the Republic of Moldova.
Of the industries represented in the study, the IT sector recorded the highest average
wage growth, of 5,17%, followed by Pharma at 5%. The FMCG & industry and telecom sectors recorded increases below the survey average, at 2,07% and 1,61%, respectively.
In terms of staff categories, management received the highest increases, of 5,09%, followed by specialists with 4,32% and enabling staff with 4,17%. At the opposite end of the scale, low-skilled workers received an average salary increase of just 1,38%.
Estimates for next year
For 2021, private companies anticipate an average increase of 4,59% in gross wages. The highest average salary increases for 2021 are estimated at 5,86% in IT and 5,33% in the pharmaceutical sector. An increase of 3,11% is expected in FMCG & industry. Telecom operators have not provided estimates.
"Moldovan companies are adapting to the new conditions imposed by COVID-19 restrictions and have invested in digitalization, adopted more flexible and remote work, and are trying to motivate their employees to maintain their productivity. Thus, respondents have optimistic budgets for next year, with estimated salary increases similar to this year, but everything will depend on economic growth and crisis management", said Anastasia Dereveanchina, Tax and Legal Services Leader of PwC Moldova.
PwC surveyed 37 private companies from the banking, pharmaceutical, FMCG & industry, IT and telecom sectors. Participation in the survey implies provision of information on salary levels, compensation and benefits policies currently in place within the surveyed organisations.
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