Wages - 4. quarter of 2004
Lowest growth of real wage over 4 years
Publication Date: 10. 03. 2005
Product Code: r-3101-04
In Q4 2004 , the seasonally adjusted average gross monthly wage per actual person was 2.4% up on Q3 2004 (in nominal terms).
The nominal average wage was CZK 19 890 and increased by CZK 1 181 (+6.3%) year-on-year . Over the same period, consumer prices rose by 3.1%, the real wage rising by 3.1%.
In the business sphere the average wage increased by CZK 1 162 (+6.3%) to CZK 19 686 and the real wage increased by 3.1%. The relatively high wage rise recorded in Q1 2004 (+8.5%) did not happen again in the following quarters of the year; the growth rate decelerated to 5.7% in Q2 and moderately accelerated to 7.0% in Q3.
In the non-business sphere the average wage grew by CZK 1 244 (+6.4%) year-on-year to CZK 20 573, whilst the real wage grew by 3.2%. The wage development in this sphere was affected by the adjustment to salaries and wages of employees in public services and administration (the transition from 12-grade salary scale to 16-grade one) effective as of 1 January 2004, which contributed to a higher growth of wages in Q1 2004. On the other hand, the reduction in the additional pay from 50% to 10% resulted in a year-on-year drop in Q2 2004. In Q4, 25% of that pay was paid.
In the year 2004 , the average gross monthly nominal wage amounted to CZK 18 035, which translates into an increase of CZK 1 116 (+6.6%) on the corresponding period of the previous year. Over the same period, the consumer prices and real wage went up by 2.8% and by 3.7%, respectively. In the business sphere the average wage increased by CZK 1 162 (+6.9%) to CZK 18 116 and the real wage by 4.0%. In the non-business sphere the former increased by CZK 961 (+5.7%) to CZK 17 761, the latter rising by 2.8%.
The inter-industry wage differentiation remained unchanged in 2004 compared to 2003. The variation coefficient of average wages (by CZ-NACE division) amounted to 33.2%.
By CZ-NACE section, the lowest relative growth of nominal wages was recorded for health and social work (+2.7%), hotels and restaurants (+4.8%) and public administration and defence, compulsory social security (+5.2%), while the highest was reported by agriculture, hunting and forestry (+9.3%), manufacturing (+7.5%) and construction (+7.4%). The highest nominal wage (financial intermediation) was 2.7 times the lowest nominal wage (hotels and restaurants).
In the long run, the highest average wages are paid in internationally owned companies (CZK 22 540), whereas the lowest are recorded for entities owned by cooperatives (CZK 12 161).
Analysis - Commentary on the development of average wages of employees
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: 17 February 2005
End of data processing: 25 February 2005
The data are preliminary; revised data will be available in April 2005.
Related publication: 3106-04 Registered Number of Employees and their Wages in the CR for the 1st-4th Quarters of 2004 ; to be brought out in March 2005.