Monthly income of average Czech household drops to Kc28,283


21.05.2014 19:44

Prague - Net monthly income of an average Czech household dropped by Kc373 year-on-year to Kc28,283 last year, and monthly income per a household member decreased by Kc134 to Kc12,534, an analysis of household incomes and expenditures, submitted to the government, has shown.


Peníze, bankovky, česká měna, koruna, úspory - ilustrační foto. ČTK Zavoral Libor

"Average households could not buy goods and services worth Kc311 a month in total per one member (as a result of a growth in prices) compared with the situation a year ago," the analysis said.

However, the number of people in danger of slipping into income poverty decreased by about 118,300 compared with the previous year to 872,000 in 2013, according to preliminary results.

The average monthly wage in the national economy reached Kc25,128 last year. It increased by Kc16 (0.1 percent) nominally, but in real terms it declined by 1.3 percent owing to a growth of prices.

"The average real wage declined for the second straight year already. In 2013, the drop was even 0.7 percentage point bigger than in 2012. It was the highest drop since 2000," the report said.

About 68 percent of people in the Czech Republic earned a wage which was lower than the average wage, according to the analysis.

A quarter of employees earned a wage higher than Kc30,000, and 0.3 percent of workers earned less than Kc8,000. People with university education earned Kc42,208 a month on average last year.

The average wage in the private sector reached Kc25,100 last year. It decreased by 0.1 percent in nominal terms and by 1.5 percent in real terms. The lowest average wage of Kc17,962 was earned by employees in small companies.

The average wage in the public sector increased by 0.9 percent nominally to Kc25,251, but in real terms it dropped by 0.5 percent.

Real wages declined in 16 from 19 sectors monitored in the analysis. They decreased in all the 14 regions of the Czech Republic.

The average wage of men reached Kc29,250 and the average wage of women was Kc22,955 last year. Women's median monthly earnings were Kc20,502, which corresponds to 84.5 percent of men's median wage, which was Kc24,276.

The average old-age pension increased by Kc192 year-on-year to Kc10,985 last year. Women received Kc9,970 in old-age pension on average a month, while men received Kc12,165 on average.

The pension of people who retired before reaching normal retirement age was Kc9,806 on average.

Households spent Kc11,100 per one member a month on average last year, which was a year-on-year drop of Kc98 in nominal terms and a decline of Kc255 in real terms. A total of 91 percent of the expenditures were spent on consumption.

The number of started distraints against individuals decreased to 714,000 last year from 820,000 in 2012, which means that people were more cautious about taking out loans and handling debts.

Households' total deposits rose by Kc41.9bn to Kc1,810bn last year despite the drop in earnings. Interest rates on deposits continued to decrease last year and were below the inflation rate.

The analysis expects the situation in incomes to improve this year thanks to the expected economic recovery.

The Labour and Social Affairs Ministry expects that earnings will increase by 1.5 to 3.5 percent this year. Real wage is expected to rise by 2.8 percent, and average old-age pension is expected to increase to almost Kc11,060.

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