The evolution of incomes in Romania since EU accession: dynamic wage growth, slower reduction of inequalities
Since Romania’s accession to the EU—and especially over the past 7–8 years—wages in the country have experienced a remarkable rise, with the average net monthly salary surpassing the €1,000 threshold for the first time at the end of 2023. In nominal terms, we can speak of more than a tripling during the 2007–2024 period (from an average net monthly salary of €312 in 2007 to €1,045 in 2024). Even when adjusting this growth for inflation, the increase remains well above a doubling of the average net salary (+122%). As a result of these wage increases, Romania now surpasses several countries in this region of Europe in terms of average salaries.
And yet, despite these positive developments, a large part of the population in the country has a different perception of the evolution of their own monthly income and does not feel a significant improvement in their standard of living.
One explanation for these divergent perceptions lies in the economic inequalities within the country. Thus, even if the average wage level is growing dynamically, when a large portion of society benefits less from these increases than others, social tensions become more pronounced—potentially jeopardizing the country’s future economic development.
What do statistical data reveal about income inequality among the population?
An analysis of data on monthly wage inequality yields some surprising results. Even though a previous study showed that there are, in fact, three “Romanias” with significantly different levels of economic well-being (the capital city with the highest salaries; counties with economically dynamic cities such as Cluj, Timiș, or Brașov, where wages generally exceed the national average; and the rest of the country’s regions, where average wages are well below the national average), wage inequality at the national level appears to be on a downward trend. However, the reduction in inequality is very slow: while in 2007 approximately 71% of Romanian employees earned below the national average, this proportion in 2023 was only slightly lower, at just under 67%. This 4-percentage-point decrease does not represent a meaningful improvement in the situation, especially considering that this change occurred over a span of 17 years. The direction is the right one, but the pace of reducing wage inequality is far too slow.
To gain a more complete picture, the RoEM team also analyzed the evolution of the population’s total income, which, in addition to wages, includes social benefits such as pensions, as well as income from investments, including from privately owned businesses.
Total incomes have also experienced spectacular growth since Romania’s EU accession, with more significant increases occurring particularly after 2016. More specifically, the median value of total monthly income (that is, the midpoint value of all incomes—half of the population earns more than this amount, and the other half earns less) has increased nearly fivefold during this period (from €134 in 2007 to €653 in 2024).
It’s also important to note that total monthly income is calculated per adult equivalent, factoring in all household members. As a result, the reported total income per person may be lower than the average salary in the same year, since the latter only includes employed individuals.
In addition to the dynamic growth of total income, which mirrors the evolution of wages, the data on income inequality yield some unexpected results. The inequality index (i.e., dispersion ratio)—calculated as the ratio between the income of the top 20% of the population and that of the bottom 20% (top 20% vs. bottom 20%)—shows a sharp decrease in inequality. While in 2007 this ratio stood at 8.1 (meaning the highest-income individuals earned 8.1 times more than those with the lowest incomes), by 2024 it had almost halved to “just” 4.6 (those with the highest incomes earned 4.6 times more than those with the lowest incomes).
Overall, the data show that the share of total income held by population segments earning above the median has gradually decreased, while the share held by lower-income segments has started to increase. This reduction in income inequality has been more pronounced in the past four years, especially in 2024—a year marked by salary increases, the rise of the minimum wage, and pension adjustments.
Income inequality in Romania in European comparison
The question remains whether the 4.6-fold income gap mentioned above still represents a relatively high value. To provide a basis for comparison, we analyzed the same indicator across all EU countries. In the 2024 European ranking, Romania finds itself in the middle of the list, tied with France, and ahead of 11 countries where income inequality is higher. Among the countries with the highest inequality values are Bulgaria (7.0), Lithuania (6.3), and Latvia (6.3), while at the top of the ranking—with the lowest inequality—are Czechia (3.3), Slovenia (3.4), and Belgium (3.5). It is also important to highlight that in 2015, Romania was still the country with the highest income inequality in the entire EU, with a ratio of 8.3 between the top and bottom 20% income groups. Thus, the progress made in recent years in reducing inequality can be considered remarkable.
Taking all these statistics into account, it can be concluded that Romania has managed to significantly reduce income inequality, especially in recent years, overtaking several European countries. However, this improvement is very recent, and given the existing social tensions in the country, it is crucial that these results are maintained in the long term.
