Impact of minimum wage growth on Czech labor market

The January increase in the Czech minimum wage by CZK 1,900 to CZK 20,800 will have a ripple effect on wage conditions across various sectors, particularly in lower-paying positions. An analysis by Advantage Consulting highlights that the rise will most significantly impact industries with a high concentration of minimum-wage workers, such as cleaning, security, and less common trades like sewing. Currently, about 4% of employees, or 150,000 people, earn the minimum wage in the Czech Republic.

“The increase in the minimum wage often prompts employers to adjust wages for other roles to maintain hierarchical pay structures. This effect is particularly pronounced in sectors with a high proportion of minimum-wage workers,” explained Olga Hyklová, owner and executive director of Advantage Consulting.

In traditionally low-paying sectors, wages remain modest. Cashiers and retail workers, for example, earn an average of CZK 23,000–27,000 per month, while junior administrative roles typically pay no more than CZK 25,000. In contrast, skilled tradespeople can earn up to CZK 80,000 per month, although less specialized working-class roles average around CZK 27,000.

At the other end of the spectrum, information technology remains the highest-paying sector, with cybersecurity and data analysis specialists earning an average of CZK 120,000 per month. “Demand for digitalization and IT expertise continues to grow, boosting salaries in the field,” noted Marcela Vyskoková, marketing manager at Advantage Consulting.

In addition to IT, other lucrative roles include doctors, top managers, and technical specialists in engineering, electrical engineering, and energy. “Positions like project managers in engineering, technology development managers, and automation experts in medium to large companies can expect monthly salaries between CZK 90,000 and CZK 120,000,” added Roman Vejražka, Managing Director of Theones.

Wages vary significantly across regions in the Czech Republic. Prague, the Central Bohemian, and South Moravian Regions report the highest average wages, around CZK 55,000 per month. In contrast, the Karlovy Vary and Ústí Regions have some of the lowest averages, at CZK 35,000.

There are also notable differences between the state and private sectors, as well as between domestic and international employers. “Foreign companies typically offer higher wages and comprehensive benefits, including bonuses, flexible work arrangements, and enhanced healthcare. The private sector overall provides higher average salaries, focusing more on performance and flexibility,” Vyskoková concluded.

Source: CTK