Inflation continues to destroy the incomes of Czechs. Real wages fell by almost ten percent

Inflation continues to destroy the incomes of Czechs. Real wages fell by almost ten percent
Inflation continues to destroy the incomes of Czechs. Real wages fell by almost ten percent

Real wages of Czechs are falling rapidly. According to data from the Czech Statistical Office (ČSÚ), real wages fell by 9.8 percent in the second quarter. At the same time, the gross monthly salary grew by 4.4 percent on average and reached 40,086 crowns.

Median wages, which is the middle value when employees are divided into two equal halves with lower and higher wages, amounted to 34,111 crowns. For men it reached 36,925 crowns, for women it was 31,170 CZK. Eighty percent of employees received wages between CZK 17,854 and CZK 65,383.

“The gap between inflation and nominal wage growth is widening, and the real wage has fallen by almost ten percent. Employees will therefore buy a tenth less with their paychecks than a year ago. For the following period, it will be important to monitor how the pressure from the public sector, whose employees have received a ten percent increase since September, will affect the wage sphere. Given that many companies are now under enormous cost pressure due to expensive energy and rising financing costs, it will be very difficult for them to raise wages at a pace that follows inflation,” said Andrea Linhartová Palánová, an expert in human resources management from PwC.

Consumer prices increased by 15.8 percent over the mentioned period, which caused the real wage to fall. The volume of wages increased by 5.7 percent, the number of employees increased by 1.3 percent.

The article is in Czech

Tags: Inflation continues destroy incomes Czechs Real wages fell ten percent

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