Real wage decreased slightly in Q2

Prague, Sept 3 (CTK) - The average nominal monthly wage in the Czech Republic grew by Kc546 (2.3 percent) year-on-year to Kc24,626 in the second quarter of 2012, but inflation adjusted average wage dropped by 1.1 percent, the Czech Statistical Office (CSU) said yesterday.

"The market had expected a real drop of only 0.3 percent," Raiffeisenbank analyst Vaclav France said in a comment on the data.

The already weak dynamics of wages continued to worsen in the second quarter and they correspond to the weak performance of the Czech economy, France said.

"This year we expect a growth of the average real wage of 2.9 percent nominally, which will mean a real drop of 0.3 percent," he added.

The development of wages in the business sphere and in the non-business sphere was the same in the second quarter.

"The average wage development in the business sphere as well as in the non-business one was identical as in the entire national economy, wages increased nominally by 2.3 percent, but decreased by 1.1 percent in real terms. The data were affected by an administrative transfer of reporting units in between the spheres," the CSU said.

While the average real wage in the business sphere registered a drop for the first time this year, wages in the non-business sphere have been falling since the third quarter of 2010.

Compared to the previous quarter, the seasonally adjusted average wage increased by 0.5 percent in the second quarter of 2012.

In the first half of 2012, the average wage grew by Kc657 (2.8 percent) year-on-year to Kc24,341. Consumer prices rose by 3.5 percent in January-June, which means the real wage decreased by 0.7 percent.

The unfavourable development in the first half of 2012 was accompanied by a drop in the number of employees by about 26,400 (0.7 percent).

Only the number of people employed in the real estate segment registered a bigger growth of 3.6 percent. However, the nominal wage of these employees decreased.

The minimal wage is Kc8,000. The amount has not changed since January 2007.

Average gross monthly wages in individual segments in H1 2012
Average monthly wage

(per full-time equivalent employee) in Kc
Grow/fall against Q1-Q2 2011 in pct
Czech Republic, total 24,341 2.8
Business sphere 24,415 2.8
Non-business sphere 23,999 2.8
Agriculture, forestry and fishing 18,485 5.9
Industry, total 24,628 3.5
Mining and quarrying 31,326 3.8
Manufacturing industry 24,055 3.8
Electricity, gas, steam and air conditioning supply 40,323 -0.9
Water supply and related activities 22,842 1.2
Construction 21,403 -0.3
Wholesale and retail trade; repair of motor vehicles 22,228 1.3
Transportation and storage 23,024 0.5
Accommodation and food service activities 13,324 0.2
Information and communications 45,332 2.3
Financial and insurance activities 51,318 3.7
Real estate activities 20,948 -3.6
Professional, scientific and technical activities 30,567 3.2
Administrative and support service activities 16,385 1.8
Public administration and defence; compulsory social security 25,937 2.2
Education 23,107 3.3
Health and social care 25,033 5.0
Cultural, entertainment and recreational activities 20,223 4.4
Other activities 19,608 3.7

Source: CSU