Czechia's capital sees slowest wage growth nationwide

New figures show that average wages in Prague are growing at the slowest rate out of all regions in Czechia, though remain by far the highest nationwide. There are wide disparities between what different professions in the country earn and their respective salary increases, and the gender-pay gap also remains particularly evident in the country.

The average gross salary in Prague is over CZK 56,000, which is around CZK 10,000 higher than the average salary across the country. Despite this difference, wage growth in the capital has been slow.

"Compared to the second quarter of 2023, the [Prague] wage nominally increased by 5.5 percent, ranking last among all regions. In real terms, it grew by 2.9 percent. This is also the slowest growth of all regions," said Jana Podhorská of the Czech Statistical Office Information Service Unit.

High job competition and a high base have suppressed salary growth as employers are able to find workers willing to accept lower pay. Inflation has also limited real wage growth in the capital.

According to experts, the health and social care sector in Prague reported the largest nominal growth in the last 12 months, at approximately 11 percent. However, wages in education grew the slowest and even decreased in real terms, according Miroslav Novák, an analyst at finance company Akcenta, told Czech media outlet iDnes.

The average gross monthly salary for managers and directors in top positions was close to CZK 130,000, significantly higher than other regions in the country, where it averages at around CZK 102,000. Wage growth for these job roles in Prague grew at a 5-percent higher rate than other regions across Czechia.

In contrast, unskilled workers in Prague received the lowest earnings among all monitored job groups, at less than CZK 26,000. Wage growth stayed broadly in line with the national average.

There are also gender imbalances in terms of wage amounts. The median (rather than mean) salary for women in the capital, according to the latest available data, is CZK 43,200. This is in sharp contrast with the male median, which stands at CZK 50, 540.

In Czechia, women earn on average 13 percent less for performing the same job title as men.

Wage growth has long been a contentious issue in the capital and indeed nationwide. However, better times are ahead – or so at least analysts say.

Between now and the end of the year, income for Praguers should grow. “We expect an increase in the nominal average wage of about 7 percent, which corresponds to real wage growth of around 4.7 percent according to economist at the Cyrrus finance company Vít Hradil.

Next year should see similar growth. "Given the situation on the labor market with low unemployment and still relatively strong demand for workers, we anticipate increased growth of real wages by 3.5 to 4 percent for 2025,” Novák said.