Wages - 4. quarter of 2008

In Q4 2008, the average gross monthly nominal wage was CZK 25,381 which is by 8.3% more in the year-on-year comparison, the real wage grew by 3.4%. In the business sphere, the average nominal wage rose by 8.7% and the real wage by 3.8%. In the non-business sphere, the average nominal wage increased by 6.8% and the real wage by 2.0%.
In 2008, the average wage rose by 8.5% to reach CZK 23,542, the real wage grew by 2.1%.
In Q4 2008, seasonally adjusted average gross monthly nominal wage (hereinafter only the “average wage“) per actual person increased by 1.6%, seasonally adjusted, compared with the previous quarter.

The average wage accounted for CZK 25,381 and was by CZK 1,946 higher (8.3%) compared with the same period of 2007. Consumer prices grew by 4.7% for Q4 2008, compared with the same period of the previous year, with the real wage rising by 3.4%. The average wage increased by CZK 2,051 (8.7 %) to CZK 25,536 in the business sphere, with the real wage rising by 3.8%. In the non-business sphere the wage increase was smaller, the average wage rose by CZK 1,580 (6.8%) to CZK 24,839, with the real wage rising by 2.0 %.
In Q4 2008, wage differences between industries increased markedly compared with the same period of 2007. The variation coefficient of average wages (by CZ-NACE division) increased by 5.3 percentage points to 39.1%.
The drop of average nominal wage (by CZ-NACE) was recorded in fishing, fish farming and related activities (by 0.9%), low relative growth of nominal wage was reported for hotels and restaurants (by 4.3%) and agriculture, hunting and forestry (by 5.3%) The biggest growth was recorded in mining and quarrying (by 16.6%), in real estate, renting and business activities (by 15.7%) and in construction (12.4%). The highest nominal wage (financial intermediation) was roughly 2.6times 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 43,984). The lowest wages (CZK 15,874) were recorded in the household sector (i.e. wages of employees employed by unincorporated natural persons).

In 2008, the average gross monthly nominal wage accounted for CZK 23,542, in the year-on-year comparison the increase made CZK 1,848 (8.5%). Consumer prices rose in the given period by 6.3%, the real wage rising by 2.1 %, which is the lowest increase for the last 10 years. In the business sphere the average wage rose by CZK 2,105 (9.6 %) to CZK 23,961, the real wage by 3.1 %. In the non-business sphere the average wage increased by CZK 919 (4.4%) to CZK 22,037, with the real wage falling by 1.8%.
These average wages were calculated from the data for enterprises with 20+ employees in the business sphere (in financial intermediation the number of employees is not relevant) and for all organisations in the non-business sphere. From Q1 2009 the CZSO will publish in Press Releases two data for the average wage: one calculated according to the original method and the other in compliance with a new methodology covering all employees and the national economy as a whole.

According to estimates, the average gross monthly nominal wage for the whole national economy in 2008 (FTE) reached CZK 22,713, compared with 2007 it grew by 7.9%.

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 collection: 6 February 2009
End of data processing: 27 February 2009
The data are preliminary; revised data will be available in June 2009.
Related publication: 3106-08 Registered Number of Employees and their Wages in the CR for Q4 2008, to be brought out in March 2009
(see also http://www.czso.cz/eng/edicniplan.nsf/p/3106-07 )

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.