Average wages - 4th quarter 2009

In Q4 2009, the average gross monthly nominal wage per employee FTE in the entire national economy increased by 5.2 % compared to the corresponding period of the previous year, with the real wage increasing by 4.8 %. However, this relatively big growth was affected by structural impacts, namely dismissal of employees with lower wages and drop of the sickness rate, and by payment of accumulated extra remunerations due to legislative changes. The volume of wages shrank by 2.0 %, the number of employees was 6.8 % down.
In Q4 2009, the nominal average wage per actual person excluding businesses employing up to 20 employees increased by 4.8 %, y-o-y.
In Q4 2009, average gross monthly nominal wage (hereinafter only the “average wage”) per employee FTE in the entire national economy accounted for CZK 25,752 and, seasonally adjusted, increased by 1.4 %, compared to the previous quarter.

The average wage accounted for CZK 25,752 and was by CZK 1,268 higher (5.2 %) compared with the same period of 2008. Consumer prices grew by 0.4 % for Q4 2009, compared to the same period of the previous year, so that the real wage increased by 4.8 %. The average wage increased by CZK 1,248 (5.2 %) to CZK 25,347 in the business sphere, with the real wages rising by 4.8 %. In the non-business sphere the increase was smaller, the average wage rose by CZK 1,180 (4.5 %) to CZK 27,498, with the real wage increasing by 4.1 %.

Since Q1 2009 the data are processed and published according to a new Classification of Economic Activities CZ-NACE (national version of international classification NACE Rev.2), which replaced OKEČ classification used before (national version NACE Rev.1.1). The average nominal wage (according to CZ-NACE sections) dropped namely in 'mining and quarrying' (-3.2 %), in 'accommodation and food service activities' (-1.6 %) and in ‘other service activities’ (-0.8 %). The biggest growth of nominal wage was recorded in 'electricity, gas, steam and air conditioning supply' (+16.4 %), in 'real estate activities' (+10.7 %) and in 'human health and social work activities' (+10.1 %). The highest nominal wage (in financial and insurance activities) was approximately 3.6times higher than the lowest nominal wage (accommodation and food service activities).

Even greater difference is apparent in average wages according to institutional sectors in Q4 2009. The variation coefficient (between CZ-NACE sections) increased by 2 percentage points to 34.1 %.

In 2009, the average gross monthly nominal wage accounted for CZK 23,598, in the year-on-year comparison the increase made CZK 907 (4.0 %). Consumer prices rose in the given period by 1.0 %, the real wage rising by 3.0 %. In the business sphere the average wage rose by CZK 851 (3.8 %) to CZK 23,411, the real wage by 2.8 %. In the non-business sphere the average wage increased by CZK 1,096 (4.7 %) to CZK 24,433, with the real wage falling by 3.7 %.
The average wage based on the formerly published scheme, i.e. per actual person and excluding businesses employing up to 20 employees, increased in Q4 2009, compared to the corresponding period of 2008, by CZK 1,223 (4.8 %) and accounted for CZK 26,450, with the real wage increasing by 4.4 %. In the business sphere, the average wage increased by CZK 1,266 (5.0 %) to CZK 26,602, with the real wage increasing by 4.6 %. In the non-business sphere, average wage increased by CZK 1,117 (4.5 %) to CZK 25,957, with the real wage rising by 4.1 %.
Since Q1 2009, methodological changes concerning surveying and presentation in labour and wage statistics were made.
Newly, results are published not only for the entire population of businesses, but, also according to the previous scheme, i.e. excluding businesses employing up to 20 employees, with the view of comparability of time series. Another change features an increased focus on average wages calculated per employee FTE, which take into consideration the different work time (formerly average wage per actual person was preferred). More detailed information is available under the link Methodology.

Analysis - Analysis of the development of average wages of employees

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Note:
Contact: D. Holý, phone (+420) 274052694, e-mail: dalibor.holy@csu.gov.cz
Data source: CZSO direct quarterly survey – see the methodological note under the attached table for details
End of data processing: 2 March 2010
The data are preliminary; revised data will be available in June 2010
Related publication: 3106-09 Registered Number of Employees and their Wages in the CR for Q4 2009, to be brought out on /produkty/evidencni-pocet-zamestnancu-a-jejich-mzdy-4-ctvrtleti-nhzu3f85nm in March 2010.

The average monthly wage is the share of wages and salaries (including premium pay for overtime, direct remuneration and bonuses, refund of wages, etc) per one employee/month. It does not therefore show what wage does each concrete employee receive. Results of structural statistics providing data on employees´ earnings show that almost two thirds of employees have a lower wage than the national average.
It should be mentioned that an employee receives net salary, while the gross wage is such from which the employer pays appropriate amounts on health and social insurance, policy of employment and advance income tax.