Trade unions will demand at 6-7 percent rise in average wages this year,
according to Josef Středula, head of the Czech-Moravian Confederation of
In an interview with iDnes.cz published on Sunday, Středula said that despite an expected slowdown, Czech companies can afford pay hikes. If wages stagnate, he said, the entire Czech economy – half of which is driven by consumption – is at risk.
Czech GDP in real terms has already exceeded 90 percent of the European Union average, yet Czech wages are at around 30 percent of the European average in nominal terms, Středula said.
Despite an anticipated slowdown in Czech economic growth, a record 59
percent of companies plan to pay employees a so-called 13th salary bonus
this year, according to a survey by the Czech Chamber of Commerce (HKČR).
About three-quarters of big companies – those with more than 250 employees – plan to pay a 13th salary at the turn of the year, the survey shows. Almost every second (47 percent) small company – with up to 10 employees – will pay out such a bonus this year.
By comparison, in 2017 fewer than on in three big companies and one in five small ones paid out a 13th salary or “Christmas bonus”. The HKČR estimates this year’s bonuses on average will exceed 34,000 crowns, with the majority ranging from 18,000 to 38,000 crowns.
The salaries of senior officials will increase next year by about one
tenth, the Czech News Agency reported on Sunday. According to the data
released by the Ministry of Labour and Social Affairs, the average gross
monthly salaries on MEPs and Senators will increase by 8,400 crowns to CZK
The president’s wage will increase next year to CZK 302,700, while the ministers will earn CZK 173,200 a month, just like the heads of both houses of parliament. The average gross monthly salary in the Czech Republic reached CZK 33, 697 in the third quarter of 2019.
The Czech Republic is one of the countries with the largest gender pay gap in the EU. On average, women earn a fifth less than men, and the annual difference exceeds one month's earnings. In an effort to combat this discrimination, the Ministry of Labour has launched a project called “22% to equality”, in reference to the difference in female and male incomes. The project involves comprehensive research, but also a web payroll calculator or an “equal pay program” for employers.
Prime Minister Andrej Babiš (ANO) has said the planned teachers’ strike
over salaries on Wednesday is unwarranted and the government will not
respond to it.
Teacher unions last week announced plans for the all-day strike after their demands for a 10 percent salary increase was not met. Babiš and Minister of Education Robert Plaga (ANO) had offered an 8 percent raise.
Over 6,000 schools, nearly 60 percent, have so far confirmed that they will take part in the strike on Wednesday, the unions said, while others will display a logo signifying their support.
The average monthly gross salary of a teacher was around 36,200 crowns in the first quarter of 2019 while the national average stood at 32,466 crowns. The unions have been pushing to raise teachers' salaries to 130 percent of the average.