Average wages - 4th quarter of 2010

In Q4 2010 the average gross monthly nominal wage per employee FTE in the entire national economy increased by 0.9% and the real wage, on the contrary, fell by 1.2% compared to the corresponding period of the previous year. The volume of wages was reduced by 0.3%; the number of employees dropped by 1.2%.
In the business sphere the average wage nominally grew by 2.1%, yet it stagnated in real terms. In the non-business sphere the average wage dropped by 3.9% nominally and by 5.9% in real terms.

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In Q4 2010 the average gross monthly nominal wage (hereinafter only as “the average wage”) per employee FTE in the entire national economy remained at the same level, seasonally adjusted, compared to the previous quarter.

The average wage accounted for CZK 25 803 and was by CZK 239 (0.9%) higher than in the same period of 2009. This is the lowest growth in the average wage since the beginning of the comparable time series in 2000. Consumer prices grew by 2.1% in Q4 2010, compared to the same period of the previous year, and thus the real wage decreased by 1.2%. The average wage in the business sphere increased by CZK 536 (2.1%) to CZK 25 660, while the real wage was stagnating, because the average wage grew nominally the same way as consumer prices. In the non-business sphere the average wage fell by CZK 1 074 (3.9%) to CZK 26 422, with the real wage decreasing by 5.9%.

In Q4 2010 the inter-industry wage differentiation decreased compared to the corresponding period of the previous year. The variation coefficient of average wages (according to the CZ-NACE sections) decreased by 1.8 percentage point to 32.7%.

The average nominal wage (according to CZ-NACE sections) dropped the most in 'education' (-5.8%), ‘financial and insurance activities’ (-4.7%), and ‘public administration and defence; compulsory social security‘ (-3.5%). The highest growth was recorded in ‘agriculture, forestry and fishing’ (+8.1%), ‘water supply; sewerage, waste management and remediation activities’ (+7.3%), and ‘accommodation and food service activities’ (+4.5%). The highest nominal wage (in ‘information and communication’) was approximately 3.4 times higher than the lowest nominal wage (in ‘accommodation and food service activities’).

In 2010 the average wage reached the level of CZK 23 951 and was by CZK 463 (2.0%) higher, year-on-year. Consumer prices increased by 1.5% and the real wage rose by 0.5% in the mentioned period. In the business sphere the average wage increased by CZK 595 (2.6%) to CZK 23 873, with the real wage rising by 1.1%. In the non-business sphere the average wage fell by CZK 142 (0.6%) to CZK 24 289, with the real wage decreasing by 2.1%.

Analysis - Commentary on the development of average wages of employees

Note:
Contact person: Dalibor Holý, tel. +420 274052694, e- mail: dalibor.holy@czso.cz
Data source: The CZSO direct survey and models – for details see the methodological notes under attached tables.
End of data processing: 2 March 2011
The data are preliminary; revised data will be available in June 2011 .
Related publication: w-3106-10 Registered Number of Employees and Their Wages (1st - 4th quarter of 2010), to be published at /csu/czso/registered-number-of-employees-and-their-wages-1st-4th-quarter-of-2010-xivd036jzv in M arch 2011.

The average gross monthly wage is the share of wages and salaries (including premium for overtime, direct remuneration and bonuses, refund of wages, etc.) per employee per month. Therefore it does not indicate what is the wage each concrete employee receives. Results of structural statistics, providing data on earnings of respective employees, show that approximately two thirds of employees have a wage lower than the national average.
It should be mentioned that an employee receives a net wage or salary, while the gross wage is such amount, from which the employer pays appropriate amounts on health and social security insurance, employment policy, and advance income tax.

Attachments

⇩ apmz030911.doc
Annexes:
⇩ Table 1 Employees, average monthly wages (by NACE activity, quarter – in thousand employees, in CZK, year-on-year changes)
⇩ Table 2 Employees, average monthly wages (by NACE activity, quarter – in thousand employees, in CZK, year-on-year changes)
⇩ Graph 1 Average monthly wage (quarter – in CZK, year-on-year changes)