Wages won’t rise significantly next year

Employers don’t regard the 3,8 percent pay rise, forecasted by the Czech National Bank for 2015, as realistic.

The Confederation of Industry of the Czech Republic estimates that the pay increase in the non-financial companies will make up between one and two percent in 2015. It has been confirmed by a survey among the Confederation’s member companies.

For this reason, 2015 won’t be a year of a significant rise of wages in the industrial companies. It will be rather a year of gradual recovery of the labour market and new recruitments. Just now, there are almost 57 000 free jobs on the labour market, which is the most in the last five years time.

The pay increase will be very differentiated and it will depend on the individual companies and branches‘ condition as well as on the result of the pay negotiation with the trade unions that are taking place just now. Several branches and many companies are still not in such an economic condition allowing a wage increase.

As the new data, published by the Czech Statistical Office, show, the average gross nominal monthly wage of a full-time equivalent employee in the Czech Republic raised 1,8 percent in the third quarter of the 2014 in comparison to the same period of the last year. The average real salary increase made up 1,2 percent.

The average gross monthly nominal wage of a full-time equivalent employee in the national economy amounted to 25 219 CZK (909,97 euros) in the third quarter of 2014 which is by 441 CZK (15,91 euros) more than in the same period of the last year.

In the business sphere, the nominal wage increase made up 1,7 percent, the real wage increase 1,1 percent. In the non-business sphere, it was 1,9 and 1,3 percent.

The Czech National Bank estimates that the wages will rise 3,8 percent in the private sector in 2015 because of the three-percent increase in the state sector, planned for the next year, but the employers don’t regard such a raise realistic.