Wages - 3. quarter of 2005

In Q3 2005, the seasonally adjusted average gross monthly wage per actual person was 1.9% up on Q2 2005 (nominal terms).

The average gross monthly nominal wage (hereinafter referred to as the ‘average wage’ only) amounted to CZK 18 833, and was higher by CZK 1 099 (6.2%) than in the corresponding period of 2004. Consumer prices in Q3 2005 compared to the same period of 2004 rose by 1.9%, with the real wage rising by 4.2%. Average wage rose by CZK 993 (5.5%) to CZK 18 930 in the business sphere, with the real wage rising by 3.5%. In the non-business sphere, the average wage rose by CZK 1 464 (8.6%) to CZK 18 497, with the real wage rising by 6.6%.

Wage development in the non-business sphere, where higher growth of wages occurred similarly as in Q1 2005, was influenced by adjustments to the pay of employees in public services and administration as of 1 January 2005 (see the CZSO’s analysis for details).

In Q1 to Q3 2005, the average wage reached CZK 18 421, rising by CZK 1 006 (+5.8%) year-on-year. Consumer prices rose by 1.7% and the real wage by 4.0% in the same period. The business sphere saw its average wage grow by CZK 924 (+5.3%) to CZK 18 516, with the real wage rising by 3.5%. In the non-business sphere, the average wage went up by CZK 1 281 (+7.6%) to CZK 18 095 and an increase of 5.8% was recorded for the real wage.

In Q1 to Q3 2005, wage differences between industries became wider compared to the corresponding period in 2004. The variation coefficient of average wages (by CZ-NACE division) grew by 1.8 percentage points to 35.9%.

The lowest relative growth of nominal wages was recorded in the following kinds of activities (CZ-NACE sections): hotels and restaurants (+2.4%), wholesale and retail trade; repair of motor vehicles, motorcycles and personal household goods (+4.2%), and manufacturing (+4.5%), while the highest occurred in public administration and defence, compulsory social security (+9.0%), real estate, renting and business activities (+8.1%), and other community, social and personal service activities (+7.1%). The highest nominal wage (financial intermediation) was almost three times the lowest nominal wage (hotels and restaurants).

The highest average wages are paid in the long run in internationally owned companies (CZK 23 288), and the lowest are recorded for entities owned by cooperatives (CZK 12 225).

Average wage for Q1 to Q3 2005 for the purposes of transfer to the state budget under Employment Act will be notified by the Ministry of Labour and Social Affairs.

Analysis - Commentary on the development of average wages of employees

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Note
Contact: Ivo Makalouš, phone +(420) 274052159, e-mail: ivo.makalous@csu.gov.cz
Data source: CZSO direct quarterly survey – see the methodological note under the attached table for details
End of data collection: 14 November 2005
End of data processing: 23 November 2005
The data are preliminary; revised data will be available in March 2006.
Related publication: 3106-05 Registered Number of Employees and their Wages in the CR for the 1st to 3rd Quarter of 2005 , to be brought out in December 2005 .