Purchasing power Romania : real vs nominal salary
The purchasing power of a Romanian's salary depends on two factors: domestic inflation (price increases in Romania) and the exchange rate (leu depreciation against the euro). The difference between real salary and nominal salary grows year by year — salaries increase only on paper, but prices rise even faster.
Inflation Romania — how much does it erode from the salary?
Romania recorded one of the highest inflation rates in the EU during 2020-2025. In 2022, annual inflation reached 13.76%, and cumulatively over 5 years total inflation exceeds 40%. A salary of 5,000 RON from 2020 now buys products worth about 3,400 RON in real terms. Without indexing the salary to the inflation rate, purchasing power steadily declines.
EUR/RON Exchange Rate and Leu Depreciation
The EUR/RON exchange rate evolved from 4.4450 in 2015 to 4.9770 in 2025 — a depreciation of ~12% in 10 years. A salary equivalent to 1,000 EUR in 2015 (4,445 RON) is now worth only ~894 EUR. The impact is visible in the prices of imported goods, vacations, and EUR-denominated loan installments.
Consumer Basket and Impact on Family Budget
- Imports and Vacations — prices of imported goods rise as the leu depreciates
- Bank Installments — loans in EUR or CHF become more expensive in RON
- Savings — RON deposits lose real value if the interest rate does not cover inflation
- Wage Competitiveness — Romanian salaries compared to those in the EU remain among the lowest
Minimum Wage and Average Wage — Have They Kept Pace with Inflation?
The gross minimum wage increased from 975 RON in 2015 to 3,700 RON in 2025 — a nominal increase of 280%. However, adjusted for cumulative inflation, the real increase is approximately 140-150%. The average net wage followed a similar trend, from 2,328 RON to 5,200 RON, but real purchasing power grew more slowly.
How to Protect Yourself?
- Negotiate Salary Increases at least at the inflation rate (5-6% in )
- Diversify Savings — deposits in EUR, investments in index funds or gold
- Track the Exchange Rate and inflation on curs.online
- Calculate the Impact before major financial decisions (credit, home purchase, relocation)
Data sources: National Bank of Romania (BNR), National Institute of Statistics (INSSE), Eurostat. Last updated: .