Czech Wages Rise for the First Time in Over Two Years

After 27 months of ceaseless decline, the average real wage in the Czech Republic has finally seen a turnaround. The real gross monthly wage in the first quarter of this year rose by 4.8 per cent. In nominal terms, the average gross wage in the first quarter was 43,941 CZK, which is 2,884 CZK or exactly seven per cent more than in the same period last year, according to data released by the Czech Statistical Office (CSO).

The median wages, or their middle value, reached 36,651 CZK in the first quarter, which is 5.5 per cent more year-on-year. For men, the median was 39,541 CZK, and for women, 33,793 CZK. “Eighty per cent of employees received a wage between 20,753 CZK and 69,219 CZK,” added statisticians.

The highest wage increases were in health and social care, about 11 per cent. The CSO recorded a tenth increase in administrative and support activities and water supply. On the other hand, the wage increased the least year-on-year for employees in public administration (2.1%) and education (1.9%).

According to Jakub Seidler, the chief economist of the Czech Banking Association, “In these two sectors, the increase was the weakest from the point of view of the development since the beginning of 2020, when average wages increased by 26 percent, while in public administration by 17 percent and in education by 14 percent.”

The overall results show a positive turnaround but sizable differences between different sectors and professions, as well as a lower median, which lagged behind the average. “This means that in the first quarter, people with higher wages mostly improved their wages. However, some may not even record this increase due to higher tax progressiveness,” noted Petr Dufek, the chief economist of Creditas Bank.