Since the end of 2019, nominal wages in Czechia have risen by 27%, but due to high inflation, their real value has dropped by 10%—the steepest decline among EU countries. Italy ranks second with a 5% decrease, while the eurozone average decline is just 1%.
The main reason is high inflation: prices in Czechia have increased by 41% since 2019, second only to Poland (42%) and Hungary (52%). However, wage growth in those countries has been faster. Wage growth in Czechia is also hindered by low productivity in construction and agriculture, as well as low labor mobility.
In 2025, real wages are expected to grow by 3.5–4.5%, but they will not return to pre-pandemic levels until 2026. The largest wage increases are projected in manufacturing, healthcare, and highly specialized sectors. However, Germany’s economic slowdown and potential trade wars could hinder this recovery.
