Survey: Wages in Czechia rose over 50 percent in the last decade

Wage growth in the Czech Republic over the past 10 years was the seventh fastest in the world when calculated in U.S. dollars. But the average annual wage was still low when compared to other developed economies.

The average Czech salary in 2021 reached $18,687 dollars, equal to CZK 468,276 per year, and was 50.9 percent higher than in 2011, according to a survey by U.S.-based financial software firm Tipalti.

In terms of wage growth, the top spots all went to the three Baltic countries. Latvia was first with wages rising 103.9 percent over the past decade to reach $18,135. It was followed by Lithuania and Estonia, up 95.5 percent and 88.5 percent respectively.

"If this Baltic wage growth continues into the next decade, these three countries could be a highly attractive proposition for any expat worker or digital nomad," Tipalti said.

Iceland came in fourth with a rise of 75..6 percent and also had the highest annual wage in the top 10 at $81,844.

The four countries of the Visegrád Group took up the fifth through eighth spots on the growth chart, ahead of the U.S. Hungary had the highest growth in the V4, up 59.8 percent, but was still lowest in the V4 at $10,615. Poland was sixth with a growth of 55.8 percent to reach $13,280.

As previously mentioned, Czechia ranked seventh and also had the highest wages in the V4. Slovakia followed in eighth with 43.6 percent growth and wages reaching $15,784.

Of the 34 developed economies tracked by Tipalti, the country with the highest wages overall was Switzerland, at $91,852. The Czech Republic was near the bottom of the list in 28th place. Neighboring Austria was in 13th place with $46,294 and Germany was 17th with $42,904.

Tipalti also projected wage growth for the next decade. In 2031 people in the Czech Republic can expect an annual salary of $28,198, rising just one spot to 27th place. The highest wage is projected for Iceland, at $143,824, followed by the United States at $103,772.

During the past 10 years, the U.S. dollar has fluctuated significantly against the Czech crown. It is currently sold for approximately CZK 23.14, but four weeks ago it temporarily sold for more than CZK 25. At the beginning of December 2011, the exchange rate was approximately CZK 19.7, according to ČTK.

The Czech Statistical Office states that last year the average gross monthly salary in the Czech Republic was CZK 37,839. In a year-on-year comparison, its growth was 6.1 percent.

Tipalti selection of 34 countries is primarily based on the Organization for Economic Co-operation and Development, which has 38 members. Chile, Colombia, Costa Rica, Chile, and Turkey were not included in the Tipalti list.