will receive the same salary as the German in 2037 at the earliest

Life in the Czech Republic has risen over the past 17 years, now it will be leaner. The average debt has increased threefold since 1993, with the purchase service increasing considerably at a price increase. Due to changes in VAT, prices will rise sharply from 2012 onwards.

While seventeen years ago he earned an average of 5,904 crowns in gross currency, last year it was 23,951 crowns and this year 23,984 crowns. But two aunts will not reach the average wage.

“Although wages are still rising, wages will catch up with Europe over a very long period of time. The most optimistic issues show that it will receive the same salary as the German in 2037 at the earliest, ”said analyst Vladimír Pikora from Next Finance.

Wages have grown the slowest in the last ten years

In 2010, the number of mezzanine wages slowed to two percent and wages have been growing at the slowest rate over the last ten years. The purchase of real wages, which are an indicator of life equality, increased by only 0.5 percent and thus increases only slightly in life.

According to Pikora, the relative wages will not change significantly, which only follows the long-term trend of slowing down the growth rate of relative wages. “With the passage of 2007, wages grew by more than six percent, now they are growing by only 0.7 percent. In 2012, the average gross wage should reach over CZK 25,100, ”says Pikora.

Years of abundance have yielded a markedly lean years

Although more incomes in Czech families are growing, the growth rates will vary depending on the type of household.

For example, in 1993 and 2010, the income of households of employees increased from CZK 3,571 per month to CZK 13,047 per member of the household. Similarly, incomes in family pensioners grew (from 2,924 crowns to 10,919 crowns per capita).

Households with children with minimal incomes are significantly more important. While in 1993 such a family had 1,744 crowns per household member, in 2010 it was only 3,962 crowns, ie about twice as much.

“Social differences in the Czech Republic are relatively small compared to the European average,” notes SOB analyst Martin Kupka.

The differences in income by region and field are deepening

From year to year, the wage differences deepen according to the region in which the people work and in which field they earn money. The lowest income is in the Karlovy Vary Region (20,179 crowns), the highest incomes are in Prague (29,744 crowns) and in the Central Bohemian Region (23,186 crowns).

As for professions, the most is earned in banks and insurance companies (46,436 crowns), in information and communication activities (average debt of 43,527 crowns gross) and high salaries are achieved by professions providing production and distribution of electricity, gas and heat (40,119 crowns gross). ).

The lowest payments are in the field of hostels, catering and hospitality (12,808 crowns) and in administrative and support activities (16,445 crowns), which is about 30 thousand less than in banks.

“The reported average wage is not, not the employer’s costs per employee. At the same time, the bag is you, not how much the employee gets in his pocket. The average is also distorted by the fact that it does not include a number of key benefits, without which some professions would probably not be possible and it is about hospitality, agriculture and construction. It simply does not include tip statistics. We can only guess, “remarked Pikora.

living rove srelo main healthy living

Purchase services of all issuers with a price increase. The biggest route of the salary number was the expensive cost of living. While in 1993 a household of employees spent 397 crowns (12.7 percent of certain expenses) on each member of the household for housing, water, energy and fuel, in 2010 it was 1975 crowns (17.6 percent of expenses). Housing costs have thus become the largest item of marriage on the family budget. The second is the expenditure on food, which according to 16 percent.

Over the past 17 years, heat, hot water and electricity have increased more than once. We pay 5 times more for water and moons and also for gas. Njemy is also growing. While in 1993 the tenant of a 3 + 1 apartment paid 460 crowns, in 2010 the rent in the same apartment rose to 3,305 crowns, ie more than 7 krrt.

Food was more expensive than housing costs

Prices for some food increased more in comparison with the necessary housing costs. You eggs are sold for 17 years for a comparable price, a piece of piblin for 2.50 crowns. The chicken did not increase even more, their price paid the most in 1997, when the kilo cost 65.30 crowns. Last year, a kilo of chicken was sold for 56.80 crowns.

Kva even became cheaper, while in 1993 it drank stograms of kva grains to 13.60 crowns, 17 years later it was 10.90 crowns. For example, bread (from 78.30 to 119 crowns per kilo) and bread (from 9.60 to 18.40 crowns per kilo) increased the price. The price of back beef also doubled (from 88.40 to 176.30 per kilo).

The box with twenty Startek cigarettes has risen from 24.70 to 72.70 crowns, and at least two crowns now go to each smoked cigarette in the cash register.

In the first year, the rise in prices will be rapid

But prices will rise faster in the first year than before. Planned from the favorable VAT rates from 10 to 14 percent of health from 2012 on food, heat, water, water and transport and other items (more here). “Only an administrative change in the VAT rate alone will increase the price level by 1.1 percentage points. In addition, the usual increase in the course of the year, when with the new year most sellers have their prices and usually up, ”said Pikora.

According to analyst Martin Kupka, the impact on the average Czech household will not be overwhelming, but there will be a significant number of pensioners and low-income households with children. “The impact of the impact will also vary within the same category of population, depending on the role played by specific consumers in increasing VAT rates and how much specific consumers should limit their consumption of these items,” concludes analyst Martin Kupka.