Average salaries in the Czech Republic by industry and profession

Economic situation in the Czech Republic in 2021

The development of the financial industry in the Eastern European country is facilitated by active investments of commercial organizations for the implementation of large projects. In 2021, there was a low percentage of the unemployed population and a high GDP growth rate. The development of the construction sector and tourism is the reason for the annual increase in the level of economic development. Inflation at the beginning of 2021 was 2.1%. There are a large number of job vacancies in the Czech Republic. The lack of qualified employees is the reason for the increase in wages in 2021 by 6-7%.

Where can I get a job in the Czech Republic?

The Czech Republic currently has a very low unemployment rate of 2.5-3%. More than 70% of students go to work in their specialty after graduation. Despite this, some enterprises experience a constant shortage of personnel. Specialists in the field of finance are regularly required to work in banks, telecommunications services, and the automotive industry. The tourism sector also needs an influx of new personnel.

The largest employer in the Czech Republic is the post office; it has branches in each region. Workers of various professions are regularly recruited here. What’s remarkable is that you can come to work at the post office at any age. The energy company has a large number of branches throughout the country; workers and qualified specialists are also regularly recruited here. The local automobile industry and railways are thriving in the Czech Republic. You can get a job in one of these companies even without special education.

The amount of wages mostly depends on the profession and the qualifications of the specialist. Social professions are in great demand in the Czech Republic. Teachers, nannies and nurses are especially respected here and receive wages starting from 700 euros per month. At the same time, the main personnel shortage in the country is the shortage of medical workers. Usually doctors retire at the age of 52, and young specialists do not come to replace them. Because they leave to work in richer EU countries. Therefore, it is quite easy for foreign citizens to find work in medical institutions in the Czech Republic.

In certain areas, you can find fully staffed units here. For example, it is quite difficult for specialists with legal and economic education to get a job here with a good salary. However, the flow of applicants for training in these professions does not dry out.

Working professions are always in demand in the Czech Republic. Since the Czechs themselves do not go to work, they attract migrants to this. Specialists (masons, plumbers, carpenters) come here from other countries and, it should be noted, they are satisfied with both their wages and working conditions. Two more of the most popular positions in the Czech Republic are the work of a maid and a waitress. People without education and sometimes even without knowledge of the language often get jobs here, despite the fact that this work is not dusty and well paid.

Salary to living expenses ratio

The Eastern European country has a high quality of living due to a stable economy, social security for citizens, and income levels compared to other countries. The country has recorded low prices for the purchase, rental of real estate, utilities, and the food basket in relation to wages. In Prague, costs are higher compared to more distant regions. Monthly expenses in the capital for two family members are about 1000 €, taking into account apartment rent, utility bills, car maintenance, and food. In sparsely populated cities, the amount of expenses is about 500-600 € in relation to an average salary of 900 €.

Immigration and international companies in the Czech Republic

At the moment, the major cities of the Czech Republic, especially the capital Prague and the Moravian metropolis Brno, are experiencing an unprecedented economic boom, associated, among other things, with the presence of wealthy international companies in them. Often these newly arrived corporations offer salaries that are far from Czech and are able to bring their employees to a high international level. In addition, such companies often have branches not only throughout the European Union, but also in other countries of the world, thanks to which they are easily able to organize not only a business trip for an employee, but also a transfer. While there is a shortage of personnel on the Czech market, we, foreigners, also have a very real chance to get a job in such a company and take our lives to a new level, both financially and in terms of growth and career development.

Wages in the Czech Republic

Salary is determined by the field of activity, qualifications, and length of service. Professions in demand are software specialists, system administrators, engineers, and employees of financial organizations. Salaries in the Czech Republic are higher in the capital region compared to sparsely populated cities in the country. In a European country, there are several methods of remuneration:

• hourly salary;
• chord encouragement;
• chord-premium system.

Hourly salary - calculation of payment for the amount of time worked. Lump-sum incentives imply the accrual of a fixed amount for a certain period established when signing an employment contract. According to the rules of the lump-sum bonus system, an employee of an organization, in addition to the basic salary, receives a bonus and additional payments for demonstrated success.

Minimum wage

The smallest amount in an Eastern European country is calculated depending on the hourly, piece-wise wage system. The minimum rate for one hour of work is 2.8 €. With an 8-hour working day, an employee receives at least 488 € monthly. To equalize the income of the population, the minimum wage in the Czech Republic increases annually by 7%.

conclusions

Let us recall that the average salary in the Czech Republic “lags behind” the salaries of large European countries, but there are states with developed economies whose residents receive significantly lower incomes. So, translated into crowns, in Poland the average salary is 21,000, in Estonia - 22,000, in Hungary - 18,500, in Latvia and Lithuania - about 16,000-17,000. Of all the EU members, Bulgarian citizens receive the least - their the average salary does not reach 9 thousand crowns (350 euros).

The decision to enter a Czech university or not is made by the applicant, but according to experts, the prospects provided by the Czech Republic are a strong argument in favor of European education. Moreover, if you have a good knowledge of the state language, you can study for free. Foreign citizenship is not an obstacle to enrolling in a budget-funded form of education.

We sorted out the salaries! But do you know what monthly costs await a student in the Czech Republic? We talked about them in more detail in this article >>>>>

Video: Salaries in the Czech Republic

average salary

In 2021, salaries across the country increased by 7%. The average salary in the Czech Republic excluding taxation is €1,150. The difference between the salaries of a qualified and an inexperienced worker is 200-250 €. The average salary for an employee after graduation is €1,100.

In the Czech Republic, the number of labor migrants increases every year. The average salary for foreign citizens is about 650€. If they have a higher education and know the national language, immigrants from Russia and other European countries can count on a salary of 1,100 €. The hourly wage for migrants is 2.8-4.6 €.

By profession

The minimum salary is awarded to unskilled workers, the maximum - to managers and heads of financial companies. The difference between the lowest and highest salaries is double the value. Salaries in the Czech Republic by profession are based on the education received, experience, qualifications, and place of employment.

The highest salary is the salary of a doctor in the Czech Republic. A highly qualified specialist receives about 3000 €. The salary of a dentist in the Czech Republic is more than 1,500 €. In-demand highly paid professions are engineers, specialists in the field of nanotechnology, logistics, and finance.

By region

The highest wages were recorded in the capital. The average salary in Prague is about 1500€. Capital salaries are 30-50% higher compared to small populated areas. The average salary by city varies from 900 to 1100 €.

What is the average salary in CZK and EUR by industry and region?

The level of average earnings (Průměrné mzda) and median salaries (Medián mzda) overall in the Czech economy also increased in 2021.

The average salary in the Czech Republic was 32,466 Kč (1,276 €) , and the median was 27,582 Kč (1,084 €). The growth of both indicators for the year amounted to 7.4% or 4.7% of real growth (taking into account 2.7% inflation).

At the same time, the Medián mzda indicators for men and women differ:

• Men – 29,936 Kč (1,176 €).
• Women – 24,982 Kč (982 €).

A significant difference can be seen in the average and median indicators and for individual industries (professions). According to data for June 2019 published by ISPV (Information System of Average Earnings):

Of course, within an industry, the spread of parameters can be very large, but it is possible to identify areas in which payment is higher or lower using these data.

Average earnings by region

Edge data was not updated at the time of publication, so information for 2021 will be provided:

Income for some professions

These data are also presented for 2021, and the lists of specialties are too huge to be included in one article. We will provide some of the most common professions:

Czech tax system

An officially employed employee is required to pay taxes monthly and make contributions to state funds. The employee must contribute money to health and social insurance, which includes a contribution for the formation of pension savings. Employed natives and migrants who stay in the territory of an Eastern European state for more than 185 days a year are subject to taxation.

Income tax

In the Czech Republic, a single percentage of contributions to the state budget from monthly wages is determined. The amount of income tax for individuals is 15%, for legal entities - 19%. Private entrepreneurs with profits of less than 16 thousand euros per year have the right not to make contributions. With an income of more than 16 thousand euros, individual entrepreneurs are required to pay 22% of net dividends.

Social contributions

In addition to income tax, additional payments are levied on officially employed citizens. The amount of contributions for health and social insurance is 11%, of which 6.5% is deducted to form a pension. Social contributions are collected from the employer: 25% of profits are transferred to the social protection fund, 9% for health insurance. Income received as a result of the acquisition of shares, inheritance of property, gift of real estate, or sale of a vehicle is not subject to taxation.

Who has tax benefits in the Czech Republic?

The following are exempt from tax or have significant benefits:

• students who work part-time;
• people with low wages;
• parents of disabled children or just parents (the discount depends on the number of children in the family).

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Those whose spouse is not working also do not pay tax or have benefits. And with a minimum wage, a person is completely exempt from personal income tax.

For those who earn more than CZK 1,296,288 per year, there is an additional salary tax of 7%. True, there are not many such people.

What does the employer pay and what does the employee pay?

The employer pays part of the taxes for each employee:

• to the social insurance fund - 25%;
• to the health insurance fund – 9%.

And the worker himself pays from his salary:

• to the social insurance fund – 6.5%;
• to the health insurance fund - 4.5%.

That is, the employer pays the bulk of taxes. And this reduces social tension due to the large difference in income between the employer and the hired worker. Thus, if the salary is 20 thousand crowns, then after deducting all taxes, a person receives 15,850 crowns in hand.

Open vacancies for foreigners in the Czech Republic

The Eastern European state has a high level of vacancies for migrants. Work in the Czech Republic is available for Russians, Ukrainians, and Slovaks even without work experience. Foreigners are in demand in the fields of trade, tourism, logistics, and services (waiters, cleaners, maids, nannies, taxi drivers). Highly paid vacancies for visitors include web designers, programmers, system administrators, managers, doctors, ecologists, and chemists.

How much do foreign citizens earn in the Czech Republic?

The average salary of Russians is about 600 €. A foreigner with a higher education and knowledge of the Czech language can count on a salary of more than 1000 €. Unskilled service employees receive monthly from 400 to 500 €. When paid hourly, migrant workers are charged from 2.8 to 4.6 €.

Employment in the country

Our compatriots prefer Prague for moving. This is a beautiful city in the center of Europe, with medieval castles, bridges, and parks. The location, climate, architecture attract foreigners. In large cities it is always easier to find a job, the level of pay is higher than in other regions.

Working in Prague is also attractive for Russians because the city is a tourist center. Considering this fact, there is a chance to find employment in vacancies related to serving guests and not requiring qualifications: maids, waiters. Specialists with a high level of qualifications are also in demand in the capital. A good programmer or an experienced surgeon can count on a worthy position. Foreign entrepreneurs registering companies in the Czech Republic also prefer to do this in the capital.

Jobs in the republic can be found via the Internet. Today there are many resources with vacancies on the World Wide Web. For those who do not want or cannot search on their own, there are many recruiting agencies. Many job seekers find vacancies through friends in the Czech Republic.

Job Search Process

It is advisable to look for a job in advance, which will allow you to quickly and without any problems get a visa and start working. For this purpose, you can use a wide range of specialized portals where vacancies for foreign applicants are published. In addition, if you have friends and relatives living in the country, you can find a good job with their help.

Special exchanges have become widespread, which require making a mandatory contribution (about 50 euros), after which they take on the task of finding an employer. Subject to successful employment, the employee will be required to pay a set percentage of wages for the first few months.

Photo of the Building of the Ministry of Labor and Social Affairs of the Czech Republic

For successful employment, an engineer, unlike unqualified specialists, will need to confirm his knowledge and diploma by visiting a branch of the Czech Ministry of Labor. The optimal age to look for work in this country is 18–50 years old.