Experts have determined that a dignified living wage in the Czech Republic should be 45,865 Czech crowns (gross) for full-time work to cover the needs of an adult with a child, including leisure time and modest savings. However, this benchmark remains out of reach for many, with 63% of employees earning less than this amount last year. The situation is even more pronounced among women, where three-quarters fall below this threshold.
The capital cities of Prague and Brno face even higher requirements, where a dignified income should reach 53,953 crowns due to elevated living costs. The gap between reality and ideal remains substantial, with 59% of employees in these cities unable to reach this income level.
Housing costs are driving much of the increase in living expenses. Young people are particularly affected, with about two-thirds of households headed by someone under 35 living in rental properties. The housing crisis has intensified, with 157,000 people facing housing insecurity and 860,000 individuals struggling with excessive housing costs.
The experts’ calculations break down monthly expenses into specific categories: 14,373 crowns for housing with utilities, 8,199 for food, 1,496 for clothing and footwear, and additional allocations for transportation, health, telecommunications, leisure activities, and savings.
Looking ahead, the Chamber of Commerce projects wage growth of 5.6% nominally and 3.2% in real terms this year. However, the real purchasing power of Czech wages still lags behind pre-pandemic levels, with economists not expecting a return to pre-COVID values until next year.