The slowest wage growth is in Germany, where it has been 26.5 percent in the last ten years, which is almost twice less than in the Czech Republic. It is followed by Slovakia with growth of 27.1 percent, where the pace slowed significantly in 2008 with the advent of the euro, and Poland with 34 percent. Wages in Austria have risen by 36.9 percent since 2010.
Nominally, the Czechia is deep below Germany, where the gross monthly wage reaches 106,436 crowns, which is 193 percent more than in the Czech Republic. They are followed by Austria with an average wage of CZK 100,321 and the Czechia with CZK 34,271. In Poland, the monthly wage is 29,591 crowns and in Slovakia 27,025 crowns, ie 13.7 percent and 21.1 percent less, respectively, than in the Czech Republic.
According to the analysis, strong wage growth was accompanied by inflation, which in the Czech Republic reaches the highest levels in Central Europe, currently 2.9 percent. In Germany, on the other hand, price growth is very slow and in the midst of a pandemic, Europe’s largest economy is even facing a deflation of 0.2 percent.
“It is inflation that can indicate where wages will go. We have done very well over the last few years, but productivity has sometimes not copied strong wage growth. As a result of restrictive measures, wage growth can be expected to stagnate next year, not only in the Czech Republic. but also in other European economies, “said Purple Trading analyst Štěpán Hájek.