Czechia Among EU Leaders in Real Wage Growth
Real wages in Czechia are forecast to rise at one of the fastest rates in the European Union in 2026, according to the Employment Conditions Abroad’s (ECA) 2025–26 Salary Trends report. The country is expected to rank second in the EU for real wage growth, alongside Bulgaria and Poland, with salaries projected to increase by 2.7 percent after accounting for inflation.
The report highlights a stronger outlook for Czech households after several years of high inflation that weakened purchasing power. Real wages measure salary growth while factoring in price increases, making them a key indicator of how living standards are changing. Within the EU, only Hungary is predicted to perform better, with real wages expected to rise by 3.5 percent next year.
Low Inflation to Support Salary Increases
The positive wage outlook in Czechia is closely tied to the country’s relatively limited inflation. According to the International Monetary Fund’s forecast cited in the report, inflation in Czechia is expected to reach 2.3 percent in 2026. This lower inflationary pressure is set to help workers retain more value from their pay increases.
Nominal wages, which do not account for inflation, are expected to rise by around 5 percent in 2026. This marks a substantial improvement compared to the approximately 2.5 percent growth recorded this year. Analysts believe that the combination of higher salaries and controlled inflation will significantly strengthen purchasing power across the country.
Economists Warn Recovery Is Not Yet Complete
Despite the encouraging projections, economists caution that Czech households have not yet fully recovered from the inflation shock that followed the Covid-19 pandemic. Economist Petr Studnička noted that real salary levels remain below pre-pandemic levels, meaning workers are still catching up to the purchasing power they had before 2020.
Current wage data from the Czech Statistical Office reflects ongoing growth in earnings. As of the third quarter of 2025, the average gross monthly salary in Czechia reached CZK 48,295, representing an annual increase of CZK 3,194. Prague continues to report the country’s highest average wages at CZK 61,129, while the Karlovy Vary region records the lowest average salary at just over CZK 41,500.
Czech Salary Outlook Compared With Europe
Across the broader ECA report, Turkey is forecast to experience the strongest real salary growth overall at 8.1 percent. Romania is the only country expected to see a decline in real salary growth, with a projected contraction of 0.7 percent.
Link: Real wages in Czechia to rise almost the fastest in all EU next year – Prague, Czech Republic
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