Average salary in the Czech Republic

The average salary in the Czech Republic exceeds the level of most countries in Central and Eastern Europe. Its value has been growing over the past 5 years.

Economic situation and incomes of the population today

Over the past 30 years, the Czech Republic has successfully carried out the necessary reforms and formed a dynamically developing economy. Today, the country is among the top 40 countries in the world in terms of human development index and GDP per capita.

The historically high level of industrialization is now complemented by progress in construction and tourism. Low inflation (2-3% per year) and unemployment (3–4%), active foreign trade allows the Czech Republic to occupy a leading position among the countries of Central and Eastern Europe in terms of income and quality of life of the population. Czechs' incomes increase annually by 5–8%... Along with the acceptable cost of services and goods, this allows you to ensure a high standard of living.

Salary per month by occupation in 2021

The national currency of the Czech Republic is the freely convertible crown. Its exchange rate is quite stable against the euro: 1 euro is approximately equal to 25 CZK.

The table shows the average income in the Czech Republic (in euros) of representatives of various professions before taxes.

The top three highest paid occupations include air traffic controllers, executives and doctors.

Minimum wage

In the Czech Republic, 2 levels of the minimum wage are legally established: based on 1 hour and 1 month of work (assuming an 8-hour work week). The minimum wage is a gross wage, that is, it is calculated without taking into account tax, insurance and social payments.

From January 2021, the minimum wage is 2.9 € per hour (73.2 CZK) and 488 € (12 200 CZK)... After a long period of stagnation, since 2013
d. the minimum wage is steadily increasing by 7–11% annually in order to equalize the incomes of Czechs with residents of Western Europe.

The Czech government guarantees the employee the payment of the amounts transferred, subject to his standard employment.

Average salary

According to the Ministry of Labor and Social Protection, the average earnings in the Czech Republic before taxes are about 1150 €... Compared to the previous year, it increased by 7%, and the real incomes of the population (taking into account inflation) increased by 5%.

The growth in the level of average earnings has been observed continuously since 2014
of the year. This trend is explained by the need to prevent external migration of able-bodied citizens to other countries and to attract qualified labor to the Czech Republic.

The average salary depends on the place of residence, profession, experience, qualifications, company size, and the gender of the employee. For example, employees of large enterprises earn an average of 300–400 € more employees in small companies with up to 20 employees. Average salary of women in 250–280 € less than men.

Average starting salary

The average starting salary usually differs by 100–200 € downwards compared to the income of an experienced specialist. Its level largely depends on education and qualifications. The average starting gross salary of university graduates is 1050–1100 €... Within 5 years, it increases to 1250 €.

For representatives of blue-collar occupations (especially migrants), the initial earnings may be less by 20–40%.

Maximum salary

Highly qualified specialists in the field of medicine, construction, administration, programming, and real estate can count on the maximum salary in the Czech Republic.

The maximum salary in the field of high technologies for programmers, business analysts exceeds 3000 €, for doctors of a surgical, gynecological profile reaches 3500–4000 €. The maximum salary for representatives of construction specialties with a high workload fluctuates within 1700–2500 €.

Labor remuneration by city and region

The highest income levels are typical for residents of Prague and some other large cities, since large industrial enterprises and service facilities are concentrated here. The average salary of residents of the capital differs significantly from income in the regions and exceeds them by 30–50%: in 2021 it almost reached 1500 €... For comparison, the average earnings in neighboring Warsaw are 1250 €... The difference among other regions of the Czech Republic is small: from 952 € in the Karlovy Vary Region until 1114 in the Central Bohemian Region.

The table shows the levels of average wages ("dirty") in different regions of the Czech Republic.

Payroll taxes

According to Czech law, taxes in favor of the state must be paid by citizens of the country and residents - persons living on its territory of the Czech Republic for most of the year, i.e. at least 183 days. Unlike some other European countries, the payment of taxes here is strictly individual: the filing of joint declarations of the spouses is prohibited.

The total amount of tax deductions for residents of the country is equal to 26%.

In order to avoid double taxation, the Czech government has signed relevant conventions with most European states (including CIS countries).

Income tax

Currently, the amount of income tax in the Czech Republic is 15%. A distinctive feature of the tax system of this country is the presence of a fixed income tax rate, which does not increase with the growth of income. Exceptions are provided for individual entrepreneurs.

With income less 400,000 CZK in year (about 16,000 €) they are exempt from paying income tax. If the profit of an individual entrepreneur exceeds 48 average salaries, then in addition to 15% income tax is subject to an additional rate - 7%... Only net income is taxable (less any costs incurred).

The income tax rate for legal entities is 19%.

Social contributions and other taxes. What is tax free

Apart from income tax, the most significant deductions from wages are social and insurance payments. Their total value is 11%... Of them 6,5% goes to social insurance (pension fund) and 4,5% for medical insurance.

The employer also bears the burden of the tax burden for each employee: 25% from his earnings is deducted to the social fund and 9% accounted for by health insurance.

Every owner of real estate in the Czech Republic is obliged to pay tax on it. For an ordinary resident who owns an apartment or house, it rarely exceeds 40–50 € per year and depends on the area, location, purpose (commercial or residential).

Other most common tax payments include:

• Transport tax: depends on vehicle weight and engine size;
• Real estate sales tax;
• Television and radio tax: paid by the owners of televisions and radios (including in cars, telephones). Tax on TV is about 5 €, on radio - 2 € per month.

Profits from the following sources are not taxable:

• Acquisition of shares;
• Receiving an inheritance from close relatives;
• Real estate donation;
• Income from the sale of movable property.

The ratio of salary and living expenses

The cost of renting an apartment largely depends on its area, location, infrastructure. In Prague, the monthly fee for a 1-room apartment in a residential area is 300–350 €... One-bedroom apartment in the center can be rented for 600-650 €... The rent in other cities of the Czech Republic is lower: from 220 € on the outskirts of Ostrava up to 370 € in a residential area of ​​Brno.

Average cost of 1 sq. m. of residential real estate in Prague - 2500 €.

Utility bills are a significant cost column in the Czech Republic. The maintenance of a 1-room apartment costs 100-120 €, three-room - up to 170 € (and may increase in winter).

Food prices are moderate. For a family of 3 people, this expense column accounts for 300-500 € per month. The price of a monthly public transport ticket is about 27 €.

Payment for medical care is due to the insurance payments of able-bodied citizens. A number of categories of the population (children, pensioners, women on maternity leave, etc.) are insured by the state.

Unemployment Rate and Prospects for Migrants

According to official data, the unemployment rate in the Czech Republic fluctuates between 2,5-3,5% and has recently reached a record low. Despite the lowest unemployment among the EU members, the Czech Republic is experiencing a staff shortage.

The constant outflow of the young working-age population to countries with a higher standard of living has led to the fact that in the Czech Republic more 200,000 vacancies... The labor shortage can only be met by attracting skilled migrants.

The Czech Republic with a high level of wages and the need for professionals is a promising destination for labor migration.