Wages - 1. quarter of 2008

In Q1 2008, the average gross monthly nominal wage was CZK 22,531 which was by 10.4% more in year-on-year comparison, the real wage grew by 2.8%. In the business sphere, the average wage rose by 12.2% and 4.5% in nominal and real terms respectively. The average wage in the non-business sphere grew by 3.5% and decreased by 3.6% in nominal and real terms respectively.
In Q1 2008, the seasonally adjusted average gross monthly nominal wage (hereinafter only the “average wage“) per actual person increased by 2.1%, compared with the previous quarter.

The average wage accounted for CZK 22,531 and was by CZK 2,120 higher (10.4%) compared with the same period of 2007. It is the biggest wage growth from Q4 1998. However, the consumer price growth was also significant – in Q1 2008 compared with the same period of the previous year consumer prices rose by 7.4%, with the real wage rising by only 2.8 %. The average wage increased by CZK 2,512 (12.2 %) to CZK 23,174 in the business sphere, with the real wage rising by 4.5%. In the non-business sphere the average wage increase was markedly smaller, the average wage rose by CZK 678 (3.5%) to CZK 20,204, with the real wage falling by 3.6 %.

In Q1 2008, wage differences between industries increased compared with the same period of 2007. The variation coefficient of average wages (by CZ-NACE division) grew by 1.3 percentage point to 40.0%.

The smallest relative growth of nominal wage (by CZ-NACE section) was recorded in education, public administration and defence, compulsory social security (both by 3.0%) and in health and social work, veterinary activities (by 5.3%). The biggest growth was recorded in electricity, gas and water supply (by 18.2%), fishing, fish farming and related service activities (by 17.2%) and real estate, renting and business activities (by 17.1%). The highest nominal wage (financial intermediation) was roughly 3.3times higher than the lowest nominal wage (hotels and restaurants).

Even greater difference is apparent in average wages according to institutional sectors. In the long term, the highest average nominal wages are reached in financial institutions (CZK 52,154). The lowest wages (CZK 14,538) were recorded in the household sector (i.e. wages of employees employed by unincorporated natural persons).

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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 collection: 7 May 2008
End of data processing: 22 May 2008
The data are preliminary; revised data will be available in August 2008.
Related publication: 3106-08 Registered Number of Employees and their Wages in the CR for Q1 2008 , to be brought out in June 2008

The average monthly gross wage is wage funds (incl. overtime bonuses, premium pay and bonuses, wage compensation, etc.) per employee per month; it does not refer to wage earned by an employee. Structural statistics where data on earnings of individual employees are available say that roughly two thirds of employees earn less in comparison to the national average wage.
From the gross wage employers pays for their employees health and social security insurance contributions, employment policy contributions and advance income tax; employees are paid net wages.