William Malcolm

Average Wage In Czech Republic Soared In 2nd Quarter

The average wage in the Czech Republic in the second quarter of this year increased by 11.3 percent year on year to 38,275 crowns. In gross terms, employees received an average of 3,893 crowns more than a year ago. Including growth in consumer prices, earnings rose by 8.2 percent in real terms. The Czech Statistical Office informed about it. In general, however, two-thirds of employees do not reach the average wage. According to statisticians, the significant increase is due to a low comparison base and the payment of extraordinary rewards to health professionals.

“The growth of the average wage by 11.3 percent is significantly affected by last year’s low base when wages fell sharply in some sectors due to the onset of the coronavirus crisis. Department of Labor Market Statistics and Equal Opportunities of the CZSO Dalibor Holý.

The median wage, ie the average value of wages, increased by 11.5 percent year on year to 32,408 crowns in the second quarter. It reached CZK 34,461 for men and CZK 30,026 for women. The median represents the value of the employee’s wage in the middle of the wage values, so half of the wage values ​​are lower than the median and the other half higher.

In terms of regions, Prague remains the richest region, where the average wage was CZK 46,163 in the second quarter, followed by the Central Bohemian Region with CZK 39,832. However, the year-on-year increase was the lowest in both of these regions. On the other hand, the Karlovy Vary region remains the region with the lowest earnings with an average of CZK 33,636. This is closely followed by the Zlín Region, where the average wage increased by 13 percent year on year to 33,856 crowns. The highest year-on-year increase was recorded by statistics in the Hradec Králové Region, where wages rose by 14.3 percent to CZK 37,406 in the second quarter.

According to economists, the pressure on wage growth will continue due to the old-new problem with the shortage of workers in the labor market. According to them, wage growth is already lower, around five to six percent. At the same time, analysts pointed out that wage growth in industries is very uneven, and their growth will be devalued by relatively high inflation.

In finance and insurance, statisticians record a nominal decline in the average wage of 1.6 percent. In contrast, in the health and social care section, the average wage increased by 43.8 percent, mainly due to the payment of comprehensive extraordinary remuneration for managing a coronavirus pandemic. High growth, by 19.2 percent, was also in the other activities sector. In accommodation, food, and beverage service activities, wages rose by 17.3 percent.

Although wages in the financial and insurance sectors decreased year-on-year, they remained at the absolute highest level, with wages averaging around CZK 63,500. This is followed by information and communication activities, where employees earn an average of about 62,700 crowns. The lowest wages remain in accommodation, food, and hospitality, where the average is slightly over 21,000 crowns.

Minister of Labor and Social Affairs Jana Maláčová (ČSSD) reiterated today that she wants to increase the minimum wage from 15,200 to 18,000 crowns a month for next year, which would mean an increase in wages for two million employees. For the public sector, it wants to negotiate an increase of 3,000 crowns.