One of the main attractions of the Czech Republic is its skilled and well-educated workers available at a fraction of the cost of those in western economies (for instance, German employees earn nearly four times more than Czech workers).
Furthermore, the country’s attractiveness is rooted in its dense, high-quality infrastructure as well as its geographical and cultural proximity to Western Europe. Although the country’s labor costs are higher than in some Asian countries, the above-mentioned factors far outweigh any negative aspects and make the Czech Republic an attractive destination for foreign investors.
The national average gross monthly salary rose to CZK 30,265 (approx. EUR 1,160) in the first quarter of 2018, a year-on-year increase of 6.6%. Over the past five years, average annual wage growth has been in the range of 3%-7% and it is expected to remain relatively stable at that level.
Wages in the Czech Republic are characterized by regional differences. The lowest are in the Karlovy Vary, Ústí and Moravia-Silesia regions. Prague alone raises the national average wage by some 15%-20%.
Average Hourly Wages in the European Union (in EUR), 2017
Source: Eurostat, 2019
Average Gross Monthly Wages (in EUR), Q3 2018
Average exchange rate EUR 1 = CZK 25.711, USD 1 = CZK 22.106 (Q3 2018 average, Czech National Bank)
Source: Czech Statistical Office, 2019
Average Gross Monthly Wages in Selected Positions (in EUR), 2017
|Job Position / Region
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|Mechanical Engineering Technicians
|Electrical Engineering Technicians
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Note: Total labor cost = gross wage + 34% social and health contributions paid by the employer.
Average exchange rate EUR 1 = CZK 26.325, USD 1 = CZK 23.376 (year 2017 average)
Source: Trexima, 2018