Average salary in Czechia hits all time high with 8.6% y/y increase in second quarter

Average salary in Czechia hits all time high with 8.6% y/y increase in second quarter
#Czech wages rise to all time high of CZK31,851 (€1,238)
By bne IntelliNews September 7, 2018

Czechia’s average wage rose by 8.6% in the second quarter of this year y/y to CZK31,851 (€1,238) - the highest in Czechia’s history – according to data released by the Czech Statistical Office on September 4.

In real terms, the rise was 6.2%, which is the second largest growth since 2003. The median value increased by 9.4% to CZK27,236, which is the fastest increase since 2008. The low-paid groups should, for this reason, benefit more from the sharp increase than better-paid ones.

“Domestic salaries expanded unbelievably in the first quarter. In nominal terms, their dynamics reached 2008 levels and after adjusting it was the fastest increase in the last 15 years. And wages kept this pace in the second quarter,” said Komercni banka analyst Viktor Zeisel.

“The growth surpassed the market’s anticipation. And this record will be once again surpassed by the end of 2018. In the last quarter, average salary should climb over CZK34,000,” Cyrrus chief economist Lukas Kovanda said.

After seasonal adjustment, the q/q growth was 2% q/q.

Average salaries have been growing since the beginning of 2014. However, two-thirds of Czech employees still earn less than the average.

Czechia still suffers from gender inequality: there was a significant difference between a median wage value for men (CZK29,782) and women (CZK24,514).

The strongest increase was in the second quarter recorded in state sectors, especially in culture and education.

Regionally, the largest average income was in the Prague region with almost CZK40,000, whereas the lowest Moravskoslezky region with CZK28,500. All regions had a strong pace of the growth exceeding 7% y/y with the only exception – Prague with 6.9% y/y.