You lead a company or you are involved in business decisions within an economic environment where keeping the balance between costs (salaries) and revenue is becoming increasingly difficult.
Salaries, even after adjustments made in recent years, can no longer match the rise in prices, and many of your employees are expressing growing dissatisfaction with their income levels in relation to the real cost of living.
The data confirms this reality. According to the Romanian 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 average salary increases of approximately 6% for 2026, below the inflation rate.
What do these statistics 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 or staff turnover.
What solutions do you have if you cannot adjust salaries to match inflation? Find out below.
Shift the Focus from Salaries to the Total Value Offered
PwC and Mercer studies show that organizations managing this period more effectively are those shifting their attention from direct salary increases to the overall value package offered to employees.
It is not just about “how much you pay,” but rather “how intelligently you compensate for the lack of salary increases.”
You can take practical action through:
- benefits that cover real expenses (meals, healthcare, transportation)
- flexible benefit packages tailored to employee needs, as well as tax advantages
Romanian legislation allows employers to grant gift vouchers without salary taxes up to 300 RON per employee per occasion – including Easter, Christmas, or other holidays. This amount was established through Emergency Ordinance no. 130/2021 on certain fiscal-budgetary measures, published in the Official Gazette no. 1202 of December 18, 2021, which increased the threshold from 150 RON to 300 RON for gifts granted to employees and their children on holidays or special events (June 1st, March 8th).
In practice, if you offer 300 RON for Easter, the employee receives the full amount, without the company paying income tax or mandatory social contributions. This provision is now consolidated in the Fiscal Code, art. 76 para. (1) lit. b, clearly defining the conditions under which these gift vouchers remain tax-exempt.
Recommendation: Tip for employers: include gift vouchers in your internal policy or benefits regulation. This ensures clear planning, transparency and compliance with legislation.
Consider Childcare Vouchers and Cultural Vouchers, Whose Value Has Increased
It's important to understand the value of childcare vouchers and plan the budget for this benefit, which provides real support for parents.
For the first semester of 2026, starting in April 2026, the monthly amount granted in the form of childcare vouchers is 740 RON, according to Order no. 368/2026. This amount is 30 RON higher than the previous level.
In a ranking of the most appreciated employee benefits, conducted last year by Edenred, cultural vouchers ranked fourth, after meal vouchers, gift cards, and vacation cards. Romanians are placing increasing value on cultural development, and as an employer, you can support them by offering these genuinely useful benefits. You also gain several advantages:
- exemption from social tax contributions for both companies and employees, as they are subject only to a 10% income tax on the employee’s earnings
- deductibility within the limit of 5% of total salary expenses
For the first semester of 2026, the value granted monthly or occasionally in the form of cultural vouchers is a maximum of 250 RON/month and a maximum of 490 RON/event, according to Order no. 369/2026.
Use Flexibility as a Genuine Form of Compensation
Gallup data shows that flexibility has become one of the leading retention factors during periods of economic uncertainty.
For employees, flexibility means:
- reducing daily expenses (transportation, lost time)
- achieving a better work-life balance
- maintaining a sense of control during a difficult economic climate
For you, it's one of the most effective forms of indirect compensation, with significant impact and relatively low cost.
You can implement:
- hybrid or remote work (where job roles allow)
- flexible schedules
- greater autonomy in task management
Replace Fixed Salary Increases with Flexible Solutions
PwC studies show that many organizations are beginning to avoid permanent salary increases and instead adopt more adaptable mechanisms.
Instead of a fixed raise, you can use:
- one-time bonuses for achieving monthly targets
- holiday bonuses
- temporary financial support during critical periods
This approach allows you to:
- maintain better budget control
- remain flexible depending on the economic context
- reduce long-term pressure on salary structures
Communicate Openly — Reduce Tension
PwC and Gallup studies show that a lack of transparency amplifies dissatisfaction, even when decisions are economically justified.
For leaders, communication becomes a critical tool:
- communicate financial constraints in a clear and transparent manner
- outline the compensatory measures that have been implemented
- establish realistic expectations for future developments
You may not eliminate the problem, but you can significantly reduce frustration and mistrust.
Invest in Development — Even When You Cannot Increase Salaries
Mercer studies show that development opportunities are among the most important retention factors during periods when salaries remain stagnant.
Employees are more likely to stay in an organization where they see progress, even if their income does not increase immediately.
You can build this direction through:
- upskilling and reskilling programs
- internal mobility between roles
- clear career progression pathways
For you, this is one of the few investments that directly impacts both retention and productivity.
Provide Stability in an Unstable Environment
During difficult economic periods, Gallup studies show that employees appreciate stability and predictability. Beyond benefits or salary adjustments, they seek:
- job security
- consistency in management decisions
- predictability in working methods and rewards
For you, this stability becomes a form of value, sometimes more important than a salary increase.
Collaborate with Smartemp to Maintain Control Over Costs and Salaries
Smartemp, a company with 14 years of experience in workforce leasing and 10 years of collaboration with multinational companies, provides comprehensive temporary staffing services supported by a team of experts in workforce management and Romanian labor legislation.
In an economic environment characterized by frequent legislative and fiscal changes, Smartemp supports its business partners through specialized consultancy and useful financial tools such as simulations, cost estimates, and budgeting support. This enables companies to make informed decisions and optimize their human resources budgets, ensuring that hiring remains sustainable over the long term.
"Smartemp provides a comprehensive approach to workforce leasing—from sourcing and recruiting candidates to managing employment contracts, payroll, and employee benefits (housing, transportation, per diems, etc.). Additionally, we have strategic partnerships with large-scale companies that require complex workforce management and even on-site presence. We adopt a consultative approach, collaborating with organizations in sectors that need constant updates to their benefits and salary packages due to legislative changes and competitive market pressures," says George Georgescu, Smartemp HR Business Development Manager.
Write to us for a customized offer at office@smartemp.ro
Conclusion
As a leader, you cannot control inflation, nor can you always fully offset its impact through salaries. However, you can control how you respond to this pressure.
Data and studies clearly show that organizations navigating such periods more successfully are those that intelligently combine benefits, flexibility in both compensation packages and work arrangements, communication, and employee development.
By adopting an approach that demonstrates care for your team and emphasizes going through this period together, you can keep the balance even in a challenging economic environment.
Sources for the Article on Salaries
- National Institute of Statistics (Romania) – Inflation data March 2026
- PwC Romania – Salary Budget Planning Report 2025–2026
- PwC Workforce Hopes & Fears Survey 2024
- PwC CEO Survey Romania 2026
- Gallup – State of the Global Workplace 2024
- Mercer – Global Talent Trends 2024–2025
Read also:
Benefits you get in 2026 if you hire young people, unemployed people, or people from vulnerable categories
Fixed-Term Employment Contract. Everything You Need to Know as an Employer
