The average wage in the Czech Republic grew by 6.9% year-on-year, up by CZK2,179 (€84.9) to CZK33,840 (€1,319) in 4Q18, according to the data by the Czech Statistics Office released on March 8. In real terms it increased by 4.7%. The median wage reached CZK29,247 (€1,140).
In quarter-on-quarter terms, the seasonally adjusted average wage grew by 1.5% in 4Q18. “In the year 2018 the average wage reached CZK31,885 (€1,243) and its increment was CZK2,390 (€93.2) (8.1%), compared y/y. In 2018 consumer prices grew by 2.1% and thus wages increased by 5.9% in real terms,” the Office said.
The quarterly result is, however, worse than analysts expected. In the last three months of 2018, they expected a moderate slowdown in wage growth below 8% q/q. Real increases were estimated at less than 6%, the Czech News Agency (CNA) reporting.
“This is a weaker result than expected, but it is still a strong pace. A tightening labour market, rising minimum wage and rising wages in public sector have been still pushing up wages,” Cyrrus analyst Michal Brozek told CNA, adding that in 1Q19 the wage growth rate would be boosted by higher wages in the state sector, especially teachers, but in line with the slowdown in economic growth, the growth rate of salaries is expected to slow down this year.
“For 2019 we expect the rate of wage growth to reach 6.7%, which in real terms corresponds to 4.4%,” he added.
In Slovakia, the average nominal monthly salary reached €1,013 in 2018, passing the €1,000 mark for the first time ever. The average nominal monthly salary increased by 6.2% y/y, the real monthly salary grew by 3.6%.