Lowest Earning 10% Earn Less Than Czk 15,680 A Month

IT workers earn more than in other sectors; latest report says average CZK 57,785K per month

The latest quarterly report from the Czech Statistical Office shows wages still growing in real terms. It highlights the gender pay gap which is 28% for higher earners. It also shows the gap between Prague and other regions continuing to narrow, albeit slowly. Photo credit: Stock picture.

Czech Rep., Dec 9 (JS) – In the third quarter of 2019  average gross wages were nationally 6.9% higher than in the same period a year ago. Consumer prices over the same period rose by 2.8%, so this represents a real increase of around 4%. This shows a weakening when compared to the real increase of 5.3% over the whole of 2018. The main reason for this is that inflation is 0.7% higher than a year ago. Compared to the previous quarter, average wage growth in Q3 2019 after seasonal adjustment was 1.6%.

The regional results were mostly in line with recent years. The range of average wage growth was quite narrow: 5.9 – 7.7%. Whilst the upper end of this range was represented by Central Bohemia, which has the second-highest wage level (CZK 34,058) after Prague (CZK 41,720), the lowest wage increase was in Prague (5.9%). This is a long-term development that is gradually bringing the capital closer to other regions. South Moravia comes in the middle of the range and here average monthly wages increased by CZK 2,012 (+6.6%) to CZK 32,547. 

The average wage is now CZK 33,697, a year-on-year increase of CZK 2,163. This figure is calculated from the total amount of wages paid (including overtime, bonuses, etc.) divided by the number of workers per month. However, the structural earnings statistics look at wages by individual and they show that about two thirds of employees earn below the national average. 

Wage growth by sector varied quite widely but all sectors, except public administration and defence put on increases of at least 5%. The undoubted star performer was education which increased by 11.1%. The highest average monthly wages are to be found in information and technology (CZK 57,785), followed by finance and insurance (CZK 56,191) and the electricity, gas, heating and air-conditioning supply sectors (CZK 46,376); this is after increases of 5.5%, 8.8%, and 7.1% respectively.

At the other end of the scale, in restaurants and hotels, the average wage increased by 6.9% but remains the lowest wage (CZK 20 214) of all sectors. The second lowest average wage is in administrative and support services, which grew by 7.9% to CZK 22 639. In trade (wholesale and retail trade; repair and maintenance of motor vehicles), the average wage increased by 6.8% to CZK 31 702. Wage growth was generally weaker in industry,  with the highest increase of 6.1% in manufacturing, to CZK 32,917. In agriculture, forestry, and fisheries, wages increased by 7.4% to CZK 27,961. This may in part be because the working time statistics show that the third quarter of 2019 was characterized by the higher number of hours worked, compared to the same period a year earlier – the average employee worked almost four hours more per month.

Chart: Nominal (blue line) and real (red line) average wage indexes. Source: Czech Statistical Office.

The median wage level (the mid-point between the highest and lowest wage) for the same period was also calculated by the CSU using a statistical model. This produced a median of CZK 29,549, which was CZK 1,863 (+ 6.7%) higher than in the same period a year earlier. In addition, the figures revealed a significant difference between the genders; the median wage for men was CZK  31,909 and for women CZK 26,887, which represents a difference of 19%. At the same time, the wages of men showed a much wider range than that of women. The upper decile in women was CZK 45,728, whereas for men it was CZK 58,338, which is 28% higher. At the lower end, the difference is less apparent, with women having a lower decile of CZK 15,139 and men CZK16,234, which is 7% higher.

At the same time, extreme deciles were calculated. The wage margin remained wide, the tenth of employees with the lowest wages earned less than CZK15,680, while the top ten percent had wages above CZK 52,531. Low wages, however, increased somewhat faster than higher wages, the lowest decile increased by 8.5% year-on-year whilst the upper decile increased by 7.0%.

Text by Charles du Parc.

TIP: The Czech economy has been booming for the last few years, and maybe you are thinking about moving here. Yet, you are worried: what are the best paying jobs in Prague? Which field has the best salary? Should you move to Brno instead? In this article “Career Guide: Jobs And Salaries In Prague And Brno By Sectors And Positions In 2019“, we will give you an overview of the salary levels and economic situation in the Czech Republic, to help you find the best solution for your career.

The news and tips for people who would like to find a job in Prague or Brno were prepared by the Jobspin team: a mix of interns, graduates, and university drop outs. Like what you’re reading? Subscribe to monthly news highlights in the Czech job market and economy – Newsletter Sign Up. Stay tuned – more reading is coming next week.