Czechia's average wage sees slowest growth of all V4 countries

Czechia registered its first real terms quarterly wage growth in almost two years, but salaries are rising quicker in Poland, Slovakia, and Hungary. Staff

Written by Staff Published on 10.06.2024 15:32:00 (updated on 10.06.2024) Reading time: 1 minute

According to a recent cross-European study, the average private sector wage in the Czech Republic increased by 6 percent year over year in the first quarter of 2024, to CZK 43,716 (EUR 1,779)—the slowest growth out of all Visegrád Group (V4) countries. Polish wages were higher on average than those in Czechia. 

Consulting company Forvis Mazars found that real wages in Czechia grew by almost 5 percent in the first quarter of this year – the first time real wages have grown in the country in around two years. 

V4 countries saw varying degrees of wage growth last year. Poland recorded the highest increase at 25 percent, reaching an average of EUR 1,795 (CZK 44,109). Slovakia and Hungary also experienced faster growth than the Czech Republic, with average wages of  EUR 1,383 (CZK 33,984) and EUR 1,597 (CZK 39,242) respectively.

Austria sees best salaries

Among Central and Eastern European (CEE) countries, Austria has the highest average wage of EUR 4,753 (CZK 117,000), followed by Germany with an average of EUR 4,105 (CZK 100,875). 

On the other hand, to the east of the continent, Kosovo and Ukraine have the lowest average salaries in Europe – at EUR 400 (CZK 9,829) and EUR 525 (CZK 12,950) respectively.

According to the study, income taxes in the monitored countries did not significantly change in the past year; Czechia counties have among the most generous tax rates in CEE nations.

Wages will grow in Czechia this year

In a separate study, staffing firm Grafton Recruitment assumes that nominal wages will grow by around 8 to 12 percent this year. Analysts also believe real wages should grow by between 3 and 4 percent in 2024. In 2023, real wages saw a decline of about 3 percent amid high inflation.

"Wages will grow the most particularly where there is the greatest shortage of applicants,” director of staffing agency Grafton Recruitment Martin Malo said earlier this year

Financial experts calculated earlier this year that the minimum decent wage for a person with a child in Czechia to live comfortably, along with having suitable leisure time and small savings, is CZK 45,573. 

Would you like us to write about your business? Find out more