Salary Levels in the Czech Republic by Regions and Sectors

What you should expect in terms of remuneration if you decide to pursue a job in one of  the Czech Republic’s cities

Let’s be honest, one of factors that plays a very important role in choosing a job along with the working hours, bonuses and the ability to develop your existing skills and expertise is the remuneration you will get at the end of the month, technically speaking. We all have some vague idea of what our salary should be like but does the reality live up to our expectations? Let’s find out.

Where does the Czech Republic rank globally in terms of labor cost?

The Czech Republic ranks on 20th position in the List of Average Salary in the European Union for 2015. According to the data provided by Eurostat, the country registers one of the largest growth for annual salaries (8.36%) in the Union in comparison with the data published for 2014. For January 2016, the average wages of high skilled people amount to 30 000 CZK.

General review of the salaries in the Czech Republic

In comparison to the other CEE countries, the Czech Republic has a higher level of labor costs but very well-educated, skilled and multilingual labor force. Over the past five years average annual wage has grown around 3 % but it is coming from much lower base compared to Western Europe. Moreover the weaker CZK to EUR/USD exchange rate has recently made salaries more favorable and it is expected to remain relatively stable at these levels.  In comparison with the data provided by Eurostat from the previous years, the minimum wage level has increased from 328.16 Euro (2012) and reached an all-time high in 2016 with the amount of 360 Euro.  The table below shows the average monthly salary for the different economic sectors.

IT AND TELECOMMUNICATIONS

it-salary-prague

RoleMin EUROMax Euro
IT Administration/ Operations1 4002 200
Technical Support  (team leader)1 8002 500
Development (1-3 y. experience)1 3001 800
IT Consulting – ERP Consultant2 2003 200

IT JOBS >>

MANUFACTURING, LOGISTICS AND ENGINEERING

manufacture-jobs-salary-czech-republic

RoleMin EUROMax Euro
Project Management – Delivery Manager2 9004 300
R&D – Test Engineer1 1001600
Manufacturing – Product Supervision9001600
Purchase and Logistics – Transport Coordinator1 1001 400
Technical Sales – Support1 1001 400

ENGINEERING JOBS >>

BANKING AND FINANCIAL SERVICES

finance-sector-salary-prague

RoleMin EUROMax Euro
Banking – Corporate Banker1 1002 200
Finance and Accounting – Financial Analyst1 3001 900
Tax Consultancy and Audit – Auditor (up to 3 years experience)9001400

FINANCE JOBS >>

SALES, RETAIL AND MARKETING

marketing-salary-prague

RoleMin EUROMax Euro
Sales – Representative(1-3 years of experience)9001 800
Marketing  – Online Marketing Specialist1 3001 800
Retail – Department Manager9001 400

SALES JOBS >>

HR, ADMINISTRATION AND LAW

hr-jobs-salary-prague

RoleMin EUROMax Euro
HR – Administrator9001 300
Administration – Receptionist650900
Law – Company Lawyer1 1002 200

HR JOBS >>

BUSINESS SUPPORT SERVICES

business-support-jobs-czech-republic

RoleMin EUROMax Euro
Customer Service – Order Entry Clerk with Languages9001 100
Sales – Inbound Telesales with Languages9001 600
Technical Support – Level 11 1001 300
Procurement – Manager1 8002 900
HR – Payroll Practitioner9001 300
Finance – AP Analyst9001000
CUSTOMER SERVICE JOBS >>

 

See the difference between remuneration levels in the regions of the Czech Republic:

salary levels-czech-republic

 

To briefly sum up, the average national gross monthly wage rate in the Czech Republic accounts for 26 287 CZK. The average gross monthly wage of employees in Prague in the second quarter of  2015 amounted to 33 714 CZK. In comparison to the national average wage (26,287 CZK) this is 28,3 % higher. It is evident that wages in the capital Prague exceed the national average by approximate amount of 30%.

prague-best-city-to-live

The second place in terms of the average salary goes to the Central Bohemian Region with average salary of 27,034 CZK, which, to some extent, is a consequence of its proximity to Prague and the existence of industries.

The lowest average gross wage is paid in the Carlsbad region and it amounts to 22 470 CZK. However, the average gross monthly wage in Q2 2015 increased in all fourteen regions, while the average wage growth for the whole country reached 3.4%. carlsbad-region-salary-levelsLowest growth rate was registered in Prague – 2.9%, while the highest annual wages growth was observed in the Pardubice region where the average wage growth rate reached the point of 4.4%. Central Bohemian Region and Pilsen (both + 4.0%) follow the growth rate trend of the other regions in the country.

However, bear in mind that there is another factor to be considered and that is the growth of the consumer prices. The rise in average wage rate can be attributed to the growth of consumer prices and given that consumer prices in the whole country increased by 0.7%, real wage increased in Q2 2015 by 2.7%. Consumer price growth amounting to 0.9 % resulted in increasing the real wage by 2.0% as well.

The average monthly wage in the South Moravian Region reached the amount of 25 428 CZK in the 3rd quarter of 2015. Nominally, the average wage in the region grew by 4.0 while inflation reached 3.6%. In Q1-Q3 2015, the average wage in the region increased its value by 843 CZK and reached the amount 25 122 CZK. So nominal growth rate reached 3.5%, while real growth was 3.1%. It should be noted that real wage growth was recorded in all regions – the highest in the South Region, by 4.3%. In the Czech Republic the real wage grew by 3.4%.

brno-salary-levelsChanges in the average wage rates in the region were accompanied by changes in employment. South Moravian region has 440.0 thousand employed people (full time employees), which is second highest score among all regions in the Czech Republic (after Prague). Compared to the same period of 2014, the number of employed increased by 1.5%.

Sources:
tradingeconomics.com: http://www.tradingeconomics.com/czech-republic/minimum-wageshttp://www.tradingeconomics.com/czech-republic/wages
Czech Statistical Office
Ministry of Labour and Social Affairs – Czech Labour Market in 2015: Salary and Employee Motivation Survey, HAYS CZ.
Credits:
Mobile Phone, Factory, and other graphics by Freepik from Flaticon is licensed under CC BY 3.0. Made with Logo Maker

Written by: Iana Marchenko and Karolina Radichkova

Interested in living standard in the Czech Republic? Read more here:

prague-versus-vienna-standard-of-living

Prague versus Vienna: Standard of Living Compared

 

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