Czech companies to raise wages by 2.7 pct in 2016

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Prague, Oct 20 (CTK) - Wages of employees in the Czech business sector, formed mainly by industrial companies, are expected to increase by the average of 2.7 percent this year, according to a survey conducted by the Confederation of Industry of the Czech Republic cooperating with the Czech National Bank (CNB) among 169 member non-financial companies.

Companies expected a 2.4 percent wage rise, according to the survey carried out at the beginning of this year. Growing expectations reflect positive economic results and the wage rise pressure connected with the lack of workers, Confederation of Industry's economic policy section director Bohuslav Cizek said at a press conference today.Next year, companies' wages are expected to add 2.1 percent, the poll showed. The final year-on-year growth rate will be probably higher due to the increase in minimum wage and wages connected to it, premium payments, ongoing labour market stabilisation and a rise in public administration wages, the Confederation of Industry said.


A relatively small number of companies plan to recruit new employees this year, the survey revealed. It is caused by high employment rate and a lack of people on the labour market. The poll shows that companies are generally optimistic, with nearly a third of them expecting a growth in their orders in the following six months and almost two thirds think the volume will remain unchanged.

Many enterprises want to continue investing, which indicates a good condition of industry. However, the business environment quality has not improved, according to the employees. Many companies even pointed out worsened conditions, including the level of bureaucracy and transport infrastructure.

The Confederation of Industry and the CNB have been conducting the survey since 2011, carrying out a total of 22 polls until now.

Source: ČTK
Foto: SP ČR

Kateřina Pavlíková
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section Aktuálně
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