Czechs record fastest wage growth since crisis

EPA/FILIP SINGER

An exterior view of the Czech National Bank in Prague, Czech Republic.

Czechs record fastest wage growth since crisis


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Most workers in the Czech Republic have seen their wages increase 5.3% year-on-year in the first quarter of this year.

The average monthly salary in the capital climbed to CZK 36,194 (€1,375.21) a month in the first quarter. The lowest wages were once again recorded in the Karlovy Vary region: CZK 23,807.

As reported by Radio Praha online, the 5.3% increase represents the fastest growth rate since the 2008 economic crisis.

Salaries increased in all sectors of the economy, with the biggest single increase (11.8%) recorded in the field of accommodation, catering and hospitality. However, this remains a low-paying sector, with average pay of less than CZK 17,000 a month.

According to Deloitte analyst David Marek, the recent rate of growth cannot be sustained indefinitely.

“In the long term, wages can’t continue to grow at this rate. That’s because the Czech economy, which is dependent on exports, has lost its competitiveness against other countries. In our country, cheap labour came to an end a long time ago. If anybody is calling for higher wage growth, it’s neither responsible nor commendable.”

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