This year, 42% of employers in the Czech Republic provided their employees with a 13th salary, according to a survey conducted by the Chamber of Commerce. This marks a modest increase from the past two years, where approximately 38% of companies offered this benefit. However, the figure remains below the pre-pandemic level of 2019, when nearly 59% of firms paid the extra salary. The results of the survey were shared by Chamber of Commerce spokesman Jan Sotona. Nearly a third of surveyed companies reported offering 13th salaries annually. Additionally, over 12% of firms introduced the benefit this year specifically to retain employees in a competitive labor market. “Meanwhile, 58.2% of companies do not pay the 13th salary but have opted to increase employees’ regular monthly wages instead,” Sotona said. The survey revealed that large companies are the most likely to provide 13th salaries, with more than 53% paying them annually. An additional 25% offered this benefit in 2024 to prevent employee turnover. Altogether, nearly 80% of large firms reward employees with year-end bonuses. In contrast, small and micro businesses are less likely to provide 13th salaries, primarily due to financial constraints. In terms of industries, manufacturing and construction lead in paying 13th salaries, while personal services firms are the least likely to offer such rewards. The Chamber of Commerce noted that the prevalence of 13th salaries fluctuates with the economic climate. During crises, such as the COVID-19 pandemic in 2020 or the energy crisis that began in 2022, companies significantly reduced or eliminated these payments. “This year’s share of 41.8% represents only a slight increase compared to previous years and remains below the level of 2019. If economic stabilization continues, we can expect further growth in this benefit,” said Lenka Janáková, director of the Chamber’s Department of Legislation, Law, and Analysis. Ensuring competitiveness in the labor market remains a priority for companies. Alongside 13th salaries, many firms are adopting other measures to attract and retain employees, such as subsidized meals and flexible working arrangements. However, rising wage expectations and demands for extra benefits present significant financial challenges, particularly for small and medium-sized businesses. The Chamber of Commerce anticipates modest economic recovery in 2025, with real GDP growth projected at 2.8% year-on-year. Consumer prices are expected to rise by 2.3%, and wages are forecast to grow at a solid pace, even when adjusted for inflation. Source: CTK