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Wages

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 labour 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 28,623 (approx. EUR 1,100) in the first half-year of 2017, a year-on-year increase of 5.3%. Over the past five years, average annual wage growth has been in the range of 3%-5% and it is expected to remain relatively stable at that level. 

Wages in the Czech Republic are characterised by regional differences. The lowest are in the Karlovy Vary, Ústí and Moravia-Silesia regions. Prague alone adds raises the national average wage by some 15%-20%.

Average hourly wages in the European union (in EUR), 2016

   
Source: Eurostat, 2017

Average gross monthly wages (in EUR), H1 2017

Average exchange rate EUR 1 = CZK 26.075, USD 1 = CZK 21.871 (average for September 2017)
Source: Czech Statistical Office, 2017

Average gross monthly wages in selected positions (in EUR), 2016

Job position / Region Prague Plzeň Hradec Králové Brno Ostrava
Lawyer 6,900 3,840 2,680 4,600 3,070
Java programmer 3,840 2,100 2,300 3,070 2,680
Business manager 2,880 2,680 2,300 2,680 2,100
Site manager 2,300 1,920 2,100 3,840 1,920
Machinist 1,530 1,040 960 1,150 1,110
Electrician 1,340 1,150 1,150 1,230 960
Note: Total labor cost = gross wage + 34% social and health contributions paid by the employer.
Average exchange rate EUR 1 = CZK 26.075, USD 1 = CZK 21.871 (average for September 2017)
Source: Ministry of Labour and Social Affairs, 2017