Average wages - 4. quarter of 2016

In Q4 2016 the average gross monthly nominal wage per FTE employee in the national economy increased by 4.2% compared to the same period of the previous year. In real terms it grew by 2.8%. The median wage was CZK 25 061.

In Q4 2016 the average gross monthly nominal wage[1] (hereinafter only as “the average wage”) per FTE employee in the national economy was CZK 29 320, which was by CZK 1 178 (4.2%) more than in the same period of 2015. In the aforementioned period of 2016 consumer prices grew by 1.4% and thus wages increased by 2.8% in real terms. The wage volume grew by 5.8% and the number of employees increased by 1.6%.

The average wage in the business sphere increased nominally by 3.7%, that means its growth was 2.3% in real terms; in the non-business sphere the average wage increased nominally by 6.1%, and thus grew by 4.6% in real terms.

Compared to the previous quarter, the seasonally adjusted average wage in Q4 2016 increased by 0.9%.

The median wage (CZK 25 061) increased by 6.0% compared to the same period of the previous year. The male median wage reached CZK 27 372 and the female one was CZK 22 426. Eighty per cent of employees earned wages within the interval from CZK 11 657 to CZK 47 545.

In the year 2016 the average wage reached CZK 27 589 and its increment was CZK 1 122 (4.2%), compared year-on-year. In 2016 consumer prices grew by 0.7% and thus wages increased by 3.5% in real terms.

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[1] The average gross monthly nominal wage is a share of wage funds (including extra pay for overtime work, bonuses, compensation of wages, etc.) for one employee per month. Therefore this does not indicate what wage one concrete employee has. Results of the earnings structure statistics, in which data on earnings of respective employees are available, show that roughly two thirds of employees have the average wage below the national average.

The business sphere and the non-business one are delimited using the ESA 1995 methodology for the national accounts compilation. This type of breakdown will be last time published for 2016 and since the reference year 2017 will not be available any more.
The median wage represents a value of an employee wage in the middle of the wage distribution. That means one half of the wages is lower and the second half of the wages is higher than the median wage. Conversely to the average wage, which is calculated on the basis of background data from enterprise reports, the median must be derived from a statistical-mathematical model based on a sample survey, because enterprise questionnaires contain just aggregated data for the whole enterprise or organization.
It is necessary to keep in mind the employers pay, from the gross wages, appropriate amounts for premiums for health insurance and social security, income tax advances of natural persons, and other statutory deductions, or deductions agreed with the employee for their employees. The employees are paid net wages.

Notes:
The data are preliminary; revised data will be available in June 2017.
Responsible head at the CZSO: D Holý, Director of the Labour Market and Equal Opportunities Statistics Department, phone +420 274 052 694, e-mail: dalibor.holy@czso.cz
Contact person: J Erhartová, Head of the Labour Statistics Unit, phone +420 274 052 116, e-mail: jitka.erhartova@czso.cz
Method of data acquisition: The direct survey and models of the CZSO, and the ISAE (Information System on Average Earnings) model
End of data processing: 27 February 2017
Related data set: 110024-16 Registered Number of Employees and Their Wages (4^th Quarter of 2016),
/current-product/41269
Next News Release will be published on: 5 June 2016

Attachments

⇩ apmz031017.docx
Annexes:
⇩ Table 1 Employees, average gross monthly wages (by activity, Q4 2016 – absolute numbers, changes year-on-year)
⇩ Table 2 Employees, average gross monthly wages (by activity, Q1 through Q4 2016 – absolute numbers, changes year-on-year)
⇩ Table 3 Employees, average gross monthly wages (by territory of CZ-NUTS, Q4 2016 – absolute numbers, changes year-on-year)
⇩ Table 4 Employees, average gross monthly wages (by territory of CZ-NUTS, Q1 through Q4 2016 – absolute numbers, changes year-on-year)
⇩ Table 5 Median wages of gross average monthly wages by sex
⇩ Graph 1 Average gross monthly wages (quarters – absolute numbers, changes year-on-year)