Companies that employ the around 10,000 expats that work in Romania fork out 100 million euros each month (1.2 billion euros per annum), given that the average salary package of a foreign manager revolves around 10,000 euros a month.
"For the multinational companies present on the Romanian market, there are at least 10,000 expats with fixed-term contracts.
"Around 300 new foreign managers join the management teams of multinationals in Romania, thus consolidating an expat community that is dominated by managers from Greece, Italy and the Netherlands," says Michael Weiss, principal with consulting company A.T. Kearney and coordinator in Romania. An expat CEO at a large multinational company can receive a package that amounts to as much as 30,000 euros in net sum per month, with the salary accounting for just half of this sum.
Expats often receive relocation packages that can include, among other things, a home, a car and sums to cover various family-related expenses. High level managers who work for the top ten companies in the economy have signed management contracts and earn tens of thousands of euros each month, whilst some can make as much as a million euros per annum, however this number remains quite small.
"For a job that pays a Romanian around 60,000 euros per year in gross sum, a Greek will ask for around 90,000 euros, a Hungarian will demand 80,000 euros a year, while a British executive will ask for over 150,000 a year, and could even receive 180,000. For the same job, a German will get 150,000 euros per year, while Americans receive close to what the British earn", explained Weiss, who added that an expat?s minimum wage is 3,000 euros. An expat?s average net salary is 5,000 euros a month, while the full package amounts to 10,000 euros a month, so monthly expenses triggered by the expat community in Romania amount to 100 million euros. Some of the multinationals choose to pay their top executives through their local branches, while others seal management contracts through subsidiaries with lower taxes.
The sectors that tend to hire expats for middle-management positions are IT&C and telecom, as well as the pharmaceutical industry, most often for the financial and marketing departments. Expats dominate the management structure of sectors such as the tobacco industry, the beer industry and banking.
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