Average Czech wage projected to surpass CZK 54,000 by 2027, Finance Ministry reports

The average wage in the Czech Republic is expected to rise significantly in the coming years, potentially exceeding CZK 54,000 by 2027, according to the latest macroeconomic forecast by the Ministry of Finance. The forecast suggests that the average wage could surpass CZK 50,000 as early as next year, reaching an estimated CZK 51,800.

For this year, the average wage is predicted to be CZK 46,246, marking an upward revision from the April forecast. The Ministry attributes this wage growth to the ongoing tightness in the labor market, where a shortage of workers across various sectors is driving up wage demands. Additionally, high consumer price inflation and strong corporate profitability in recent years are further fueling wage increases.

“The dynamics of nominal earnings are being positively influenced by the labor market’s tight conditions, which are characterized by a significant shortage of workers in many sectors and professions,” the Ministry of Finance noted. The forecast also anticipates a rise in real wages due to sustained demand for labor and a projected decline in inflation.

According to the Ministry’s August forecast, the average wage next year could be approximately CZK 3,000 higher than this year, reaching CZK 49,233. The following years are expected to see average wages climb to CZK 51,751 in 2026 and CZK 54,179 in 2027.

This year’s average wage is expected to increase by 7.2 percent compared to last year, with real earnings anticipated to rise by 4.7 percent after two years of decline. Looking ahead to 2025, the Ministry forecasts a 6.5 percent increase in nominal wages and a 4 percent rise in real wages. In subsequent years, wage growth is expected to moderate to around 5 percent annually, with real wage growth projected to be up to 3 percent.

Last year, the national average gross wage was CZK 43,120, according to data from the Ministry of Finance. The median gross wage in the private sector was CZK 38,236, while the public sector saw a median gross salary of CZK 44,330. Regional disparities remain pronounced, with Prague reporting the highest median wages and salaries, and the Karlovy Vary and Zlín Regions reporting the lowest.

For university graduates working in the private sector, median earnings in Prague exceeded CZK 66,000 last year, while half of those with only primary education earned more than CZK 30,941. In the public sector, the median salary for university graduates was CZK 53,455 nationwide, with higher figures reported in Prague.

The forecast comes as public sector unions continue to push for a 10 percent wage increase starting in September, citing a decline in real incomes due to high inflation and low wages for certain workers. Prime Minister Petr Fiala (ODS) recently stated that there are no funds in the budget reserve for a salary increase this year, although discussions are ongoing about reallocating resources within individual ministries to accommodate the demand. Negotiations on wage adjustments are also taking place within various companies.

Source: Czech Finance of Ministry and CTK