Pay raises or work perks? Czech companies to reward employees in 2024

Employees in Czechia can expect a pay rise of between 5 and 10 percent on average in 2024, according to a survey from the Czech Chamber of Commerce (HK), mainly due to increased demand for workers. However, companies are also increasingly rewarding their employees with work-related perks and benefits to retain their workers.

Research from HK finds that most industries in Czechia will see pay rises of up to 10 percent, with the manufacturing, construction, and gastronomy sectors being slightly more generous with salaries. Ladislav Minčič, an HK director, expects workers’ real monthly incomes to rise by 3 percent this year due to the continuing trend of increasing nominal wages in Czechia and declining inflation.

Companies in the construction industry will also pay their staff around 5 to 8 percent more due to rising demand. Workers in the gastronomy sector should also look forward to higher pay – in the past month, the average starting salary of gastronomy employees rose by almost 15 percent, to CZK 31,000.

"Wages will grow the most particularly where there is the greatest shortage of applicants,” commented director of staffing firm Grafton Recruitment Martin Malo earlier this year. Malo also mentioned that “the most critical situation” in the country’s labor market gap is the lack of qualified production experts and craftsmen.

When it comes to asking for more money, a survey by Grafton found that Generation Z had the most challenging time approaching their bosses for more money. On the other hand, it was the generation that most highly valued pay increases (and overall salary) compared with other work-related perks.

Regarding reasons for leaving a job, inadequate salaries (or a better wage offer elsewhere) were the most frequently cited among all generations. 

Speaking to Expats.cz in the past, Jitka Součková of Grafton advised workers to check their value in the job market before applying for a raise. "It's also useful to know the current situation in the labor market and how much you could get elsewhere, as well as the general wage conditions in the company. It's reasonable to ask for more than, for example, the starting salary you could get from a competitor,” she added.

Companies also motivate people in other ways. Some firms, for example, offer staff benefits in the way of company shares (especially common in start-ups), staff discounts, or vouchers.

"We see an overall shift towards financial benefits. This is because non-financial benefits are now taxed more [after the government’s consolidation package]. Financial benefits – various types of bonuses – make up 8.8 percent of all benefits. Extra vacations follow, at 8.5 percent, and then catering, with 8.3 percent," data analyst Michal Španěl from the work-news website JenPráce.cz told Czech media outlet ČT24.

Regarding preferences for staff benefits, Grafton found that white-collar employees’ most popular work benefits were an annual vacation of over five weeks, whereas blue-collar workers most often wanted bonuses.