The Czech Republic’s average gross monthly salary increased by 7.7% year-on-year in the second quarter. Still, real wages decreased by 3.1%, according to new data from the Czech Statistical Office (ČSÚ). The median salary was CZK 36,816.
“Real wages have fallen for the seventh time in a row. Although the nominal salary per counted employees increased by 7.7% to CZK 43,193 compared to the same period last year, after taking inflation into account, it decreased by 3.1%,” said Jitka Erhartova, head of the ČSÚ’s labor statistics department.
While the year-on-year growth of 7.7% corresponds to a nominal increase of CZK 3,101, the increase in consumer prices by 11.1% over the same period resulted in a 3.1% decrease in real wages.
The volume of wages increased by 8.3% and the number of employees by 0.6%.
The median, or the middle value of salaries, increased year-on-year by CZK 36,816, or 7.8%. In nominal terms, men earned CZK 39,847, and women earned CZK 33,862. “Eighty percent of employees earned between CZK 19,320 and CZK 70,247,” added the statisticians.
Despite the average gross monthly salary increase, the decrease in real wages is concerning. This decrease could be attributed to the rising inflation rate. This trend of absolute wage decrease should be monitored closely in the coming quarters.
The number of employees and median salary increase is a positive sign for the country’s economy. The growth in the number of employees could be related to the country’s low unemployment rate, which is currently at 2.9%.
The ČSÚ’s data comprehensively overviews the country’s economic situation. The numbers indicate that while the country’s economy is growing, challenges such as the decrease in real wages remain to be addressed.
Policymakers and employers will need to address this issue to ensure the well-being of the country’s workers. This could include increasing the minimum wage or implementing policies to control inflation.