New reports suggest that Czech workers could expect to see pay increases continue into 2025 following raises in 2024. But what has caused this increase? Could this trend see contractors working in the Czech Republic command higher rates? We discuss.
2024 saw wages rise for workers across the Czech Republic.
According to a recent article by the Staffing Industry Analysts, a survey by the HR Software & consulting company Treximafound found that 92% of Czech companies had either already increased or planned to increase worker wages in 2024. While the report found that most companies were to implement increases, 7.5% of companies surveyed intended to maintain current pay levels, and just 0.5% expected to implement wage reductions. Recent reports from Trexima have suggested that 90% plan to increase wages in 2025. Figures from the Czech Statistical Office reflect the increases in pay and worker income in 2024 and have found that pay increases have risen faster than inflation, meaning significant increases in real terms.
Commenting on these findings, the Head of the Labour Statistics Unit of the Czech Statistical Office, Jitka Erhartová, stated, "In Q4 2024, the average gross monthly nominal wage per FTE employee increased by 7.2% to CZK 49,229 compared to the corresponding period of the previous year. After having taken the influence of inflation into account, the wage increased in real terms by 4.2%. For the whole year 2024, the inflation reached 2.4% and the nominal wage increase was 7.1%. The wage thus increased in real terms by 4.6%,"
Changes to the Czech Labour Code:
These increases come amid changes to the minimum wage and regulations governing wages as part of the rollout of further "flexible amendments" to the Czech Republic's Labour Code earlier this year. The country's government introduced these changes to align with the needs of employers and employees whilst addressing prevailing trends in the Czech labour market, encouraging greater flexibility and alleviating some of the strict provisions of the country's labour code by adjusting key employment regulations.
Opportunities amid growing demand:
Like many other countries, the Czech Republic is facing a shortage of skilled workers across many sectors, including IT, manufacturing, healthcare, transportation, construction, business services and more. According to recent findings from Manpower Group, the demand for specialists, in particular, has grown in the Czech Republic across many areas such as engineering, finance and IT. The demand for foreign professionals, in particular those with fluency in English as well as other languages such as German, has increased due to the globalised nature of business and global connectivity. Czech companies are increasingly looking to international talent to help them grow and compete in new markets and the global economy.
Could Contractors see a rate increase?
This could certainly be the case. According to findings from Grafton Recruitment, companies are looking to offer competitive compensation in an effort to attract and secure skilled talent, with Grafton Recruitment's Director of Staffing, Martin Malo, commenting, "Wages will grow the most, particularly where there is the greatest shortage of applicants".
As businesses compete for this limited talent pool, contractors with expertise in these high-demand fields may find themselves with increased opportunities and well-positioned to command higher day rates. However, this growing demand and continued skills gap suggest that competition will be fierce for employers to secure contractors who possess the in-demand skills and specialist knowledge. It is vital for those in the hiring process to act quickly, initiate the recruitment process early, and align rates, incentives, and compensation with current market trends and competitive benchmarks. Additionally, they should mitigate compliance roadblocks by partnering with a trusted solutions provider to streamline compliance and onboarding.
Your trusted compliance partner in the Czech Republic:
Whether you're a contractor looking to work in Germany, a recruiter placing contractors, or a business looking to engage skilled talent, our expert team are on hand to help!
At 3C Global, we offer end-to-end solutions tailored to your needs!
We offer a wide range of services in the Czech Republic, including:
1. Global Payment Solutions (GPS)
2. Agent of Record (AOR)
3. International Contractor Management (ICM)
4. International Contractor Compliance Audit (ICCA)
5. Advisory, Consulting & Training (ACT)
Our services are meticulously designed to remove potential risks and uncertainties associated with launching new projects, allowing all parties to focus on their core business objectives, knowing that their contracts and practices are fully compliant.
Why choose 3C Global Group?
1. In-depth local knowledge: Our team demonstrates an in-depth understanding of local labour laws and the nuances of the updated Labour Leasing Act. We ensure our team is up-to-date with regulatory changes to help you navigate compliance seamlessly.
2. End-to-end support: From drafting compliant employment contracts to managing payroll and supporting your HR needs, we handle multiple aspects of workforce management. We aim to let you focus on your business while ensuring your organisation is fully compliant.
-
Ready to take the next step in your contract talent journey in the Czech Republic?
Whether you are looking to engage and place contractors quickly, compliantly and competently or if you are looking to pursue your next contract opportunity in the Czech Republic, our expert team are on hand to help you and guide you through the process.
Contact us today!
Want to see more of this kind of content?
Keep up with the latest insights, updates and trends with 3C Global!
Explore our blog for expert insights!
Stay updated with our latest news & industry trends
