Average wages - 1. quarter of 2023
Average wage decreased by 6.7% in real terms
Publication Date: 05. 06. 2023
Product Code: 110031-23
In the Q1 2023, the average gross monthly nominal wage per full-time equivalent (FTE) employee in the national economy increased by 8.6% compared to the corresponding period of the previous year. In real terms, it decreased by 6.7%. The median wage was CZK 34 741.
“A decrease of real wages also continued in the Q1 2023. Compared to the corresponding period of the previous year, the average gross monthly nominal wage per full-time equivalent (FTE) employee increased by 8.6% to CZK 41 265, however, after having taken inflation into account, it decreased by 6.7%. It is because consumer prices increased by 16.4% in the Q1 2023,” Jitka Erhartová, Head of the Labour Statistics Unit of the Czech Statistical Office (CZSO), comments.
In the Q1 2023, the average gross monthly nominal wage*) (hereinafter only referred to as “the average wage”) per FTE employee in the national economy in total was CZK 41 265, which is by CZK 3 265 (8.6%) more than in the corresponding period of 2022. In the aforementioned period, consumer prices increased by 16.4%; the wage thus decreased by 6.7% in real terms. The volume of wages increased by 9.8%; the number of employees increased by 1.1%.
Compared to the previous quarter, the seasonally adjusted average wage increased by 2.2% in the Q1 2023.
According to the breakdown of economic activities (industries) by CZ-NACE section, the highest increase of the average wage compared to the corresponding period of 2022 was recorded in ‘electricity, gas, steam and air conditioning supply’ (23.1%). It is followed with a margin by ‘public administration and defence; compulsory social security’ (11.9%), ‘mining and quarrying’ (11.6%), and ‘accommodation and food service activities’ (11.4%). The lowest increase of wages by 3.9% occurred in ‘education’.
The median wage (CZK 34 741) increased by 8.9 % compared to the corresponding period of the previous year. The male median wage reached CZK 37 696 and the female one was CZK 31 856. Eighty per cent of employees earned wages within the interval from CZK 18 601 to CZK 65 512.
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*) The average gross monthly wage is a share of wage funds (including extra pay for overtime work, bonuses, compensation of wages, etc.) per one employee per month. Therefore, it does not indicate what wage one specific employee has. The earnings structure statistics, in which data on earnings of individual employees are available, show that about two thirds of employees have a wage below the national average.
The median wage represents a value of an employee wage in the middle of the wage distribution. It means that one half of the value of wages is lower and the other one is higher than the median wage. Unlike the average wage, which is calculated based on background data from enterprise reports, the median has to be derived from a statistical-mathematical model based on a sample survey, because enterprise questionnaires (reports) only contain aggregated data for a whole enterprise or an organisation.
It has to be kept in mind that from the gross wages the employers pay appropriate amounts for health insurance and social security premiums and income tax advances of natural persons for their employees. The employees are paid net wages.
Notes:
The data are preliminary. Refined data will be available in September 2023.
Responsible head at the CZSO: Dalibor Holý, Director of the Labour Market and Equal Opportunities Statistics Department, phone number (+420) 274 052 694, e-mail: dalibor.holy@csu.gov.cz
Contact person: Jitka Erhartová, Head of the Labour Statistics Unit, phone number (+420) 274 052 116, e-mail: jitka.erhartova@csu.gov.cz
Method of data acquisition: The direct survey and models of the CZSO; the ISAE (Information System on Average Earnings) model
End of data processing: 22 May 2023
Related data set: 110024-23 Registered number of employees and their wages (the first quarter of 2023),
/current-product/41269
Next News Release will be published on: 4 September 2023