Wages still show two different Europe

The old continent turns out to still be divided, no longer, however, by the Iron Curtain, but by the wage one. The Czech Republic continues to belong to the East, although wages are on the rise.

The Czech Republic is an Eastern country. This is what the average hourly wage figures say. While the European average is 24 euros per hour, about 600 CZK, according to Eurostat statistics, the average Czech earns 13.6 euros, or 340 CZK, in sixty minutes. Among Western countries, the only ones that can be compared are Portugal, with 13.7 euros per hour, and Malta, with 14 euros per sixty minutes.

If, on the other hand, the comparison is made with Eastern countries, the Czech Republic leads the way, as the net wage is the highest in Eastern Europe. In Bulgaria, in fact, for example, it does not even reach ten euros per hour.

However, comparing wages in absolute terms proves to be inconvenient because there are different prices throughout Europe. It is, in fact, purchasing power parity that best describes the situation, that is, the indicator expressing the number of units for which the same amount of services and products can be purchased on the market. But even based on that figure, the Czech Republic turns out to be a bridge between the richest West and the poorest East.

Yet, as reported at the top of the article, the situation is gradually improving thanks to the gradual rise in average wages. In fact, over the past two decades, the minimum has increased more than two and a half times, and with it, the so-called guaranteed wages have also increased. A guaranteed minimum wage is defined as the lowest possible wage relative to the complexity, responsibility, and commitment of the work performed. The more complex and responsible the work is, the higher the guaranteed wage will be.  Professions are, therefore, divided into eight groups, each with a different guaranteed wage. The minimum guaranteed wage for the first group corresponds to the minimum in absolute terms.  In summary, the job groups outlined include a range of jobs with different levels of complexity and responsibility, in detail:

• The first group includes unskilled jobs, such as kitchen assistants, seamstresses for minor repairs, and cleaners, which have monthly wages of less than 18,900 CZK;
• The second group involves jobs such as artisans, warehouse workers, and garbage collectors, with a monthly wage of about 19,500 CZK;
• The third group includes jobs such as bricklayers, plumbers, and barbers, whose monthly wages are around 21,300 CZK;
• The fourth group includes nurses, heating technicians, and car mechanics, whose monthly salary is 21,800 CZK;
• The fifth group includes bus drivers, foremen, and paramedics, whose monthly salary is around 24,100 CZK;
• The sixth group involves skilled labor, such as programmers, and building designers, whose minimum wage is 26,600 CZK;
• The seventh group involves occupations such as financial experts, and marketing experts, whose monthly salary is just under 30,000 CZK;
• Finally, the eighth group involves high-level positions, such as financial and sales managers, with a monthly salary of about 37,800 CZK.

Salaries tend to increase with the level of job complexity and responsibility.

In conclusion, although the Czech Republic is still considered part of Eastern Europe, wage trends indicate a gradual growth and improvement of economic conditions in the country. Although a wage disparity with richer Western countries persists, the Czech Republic is experiencing an increase in domestic wages, especially in less responsible sectors. This is also evidenced by the increase in guaranteed wages. Although the country continues to serve as a bridge between wealthier Western Europe and poorer Eastern Europe, progress in wage increases offers a prospect of economic and social improvement for the Czech population.

Sources: https://www.seznamzpravy.cz/