Czech wage jumps, with average Prague salary surpassing CZK 45,500

Wages in the Czech Republic rose in the third quarter of 2021, but in many areas they just kept pace with inflation or even fell behind slightly.

The average gross monthly wage for a full-time employee in the Czech Republic in Q3 2021 reached CZK 37,499, up 5.7 percent compared to the same time period of last year. At the same time, consumer prices increased by 4.1 percent, meaning that the average wage increased by 1.5 percent in real terms, according to the Czech Statistical Office (ČSÚ).

The highest average wages were in information and communication at CZK 64,817; followed by financial and insurance activities at CZK 58,795; electricity, gas, steam, and air conditioning supply, at CZK 50,970; and professional, scientific, and technical activities, at CZK 44,026.

On the other hand, the lowest average wages were in administrative and support services at CZK 26,756 and the miscellaneous category of other service activities at CZK 27,758. Food product manufacturing was third from the bottom at CZK 30,027, while agriculture, forestry, and fishing was fourth-lowest at CZK 30,885.

A few sectors saw large jumps compared to the previous year.

A breakdown by economic activity, though, showed five sectors did not keep up with inflation.

In the arts, entertainment, and recreation sector, the increase was just 0.6 percent, while “public administration and defense; compulsory social security” rose 2.3 percent; construction rose 3.6 percent, which was the same as for other service activities; and electricity, gas, steam, and air conditioning supply rose 3.8 percent.

By regions, the highest average wage in Q3 2021 was in Prague, at CZK 45,523, up 4.2 percent year on year. This was followed by Central Bohemia at CZK 37,625 up 4.9 percent, and South Bohemia, at CZK 36,852, up 6.0 percent.

The lowest average wage was in the Karlovy Vary region, at CZK 33,249, up 5.87 percent over the previous year. Zlín was second-lowest at CZK 33,749, up 7.1 percent.

The average gross monthly wage is a share of wage funds, including extra pay for overtime work, bonuses, compensation of wages, and so on for one employee per month. Statistics show that about two-thirds of employees have a wage below the national average.

The median wage in the Czech Republic in the third quarter of 2021 reached CZK 32,979, also up 5.7 percent compared to the third quarter of the previous year. Some 80 percent of employees earned wages between CZK 17,133 to CZK 58,875.

As always, there was a gender gap in wages. The median wage for men reached CZK 35,086 while the median for women reached CZK 30,433.

The median wage represents the value of an employee's wage in the middle of the wage distribution. It means that one-half of the wages are lower and the second half of the wages is higher than the median wage.

From the gross wages, employers pay premiums for health insurance, social security, and income tax advances for their employees. The employees are paid net wages.