Average Wage Down By 9.8% In Real Terms In The Czech Republic
Workers in the Czech Republic will be able to buy one-tenth less with the same wages than one year ago. Credit: Freepik.
Brno, 5 Sept. (BD) – In the second quarter of 2022, the average gross monthly wage in the Czech Republic was CZK 40,086, an increase of 4.4% compared to the corresponding period of the previous year, according to data from the Czech Statistical Office (ČSÚ). However, due to inflation, this represents a drop of 9.8% in real terms, the biggest decrease in the nation’s history. Workers will therefore be able to buy one-tenth less with the same wages than one year ago.
“In Q2 2022, the average gross monthly nominal wage per full-time equivalent (FTE) employee increased by 4.4%, year-on-year; however, after taking into account the inflation, it decreased in real terms already for the third successive time, this time by 9.8%,” said Jitka Erhartová, Head of the Labour Statistics Unit of the Czech Statistical Office.
In Q2 2022, the average wage reached CZK 40,086, higher by CZK 1,696 (4.4%) than in the corresponding period of 2021. However, in that same year, consumer prices have increased by 15.8%, and wages therefore decreased in real terms by 9.8%. In the same period, the volume of wages increased by 5.7%, and the number of employees increased by 1.3%.
Compared to the previous quarter, the seasonally adjusted average wage increased by 1.3% from April to June.
The sectors with the highest increase in the average wage compared to the corresponding period of 2021 were ‘accommodation and food service activities’ (11.3%), followed by ‘information and communication’ (11.0%), and ‘administrative and support service activities’ (10.3%). A decrease by 20.7% was recorded in ‘human health and social work activities’, due to adjustment from the bonuses paid last year.
The median wage (CZK 34,111) increased by 5.3% year-on-year. The male median wage reached CZK 36,925 and the female one was CZK 31,170. 80% of employees earned wages within the interval from CZK 17,854 to CZK 65,383.