Wallets decide elections. And the wallets of Czech citizens have experienced a turbulent period. Although nominal wages have been increasing, a sharp rise in inflation caused by a confluence of global crises has led to real wages at the end of 2025 being equivalent to the level of earnings six years ago. Thus, many Czech households have become poorer in real terms, despite the growth of wages “on paper”.

Key Takeaways:

• In the Czech Republic, nominal wages have been rising for a long time, this is a common and even expected phenomenon.
• The real value of wages at the end of 2025 will be the same as in 2019.
• From the perspective of OECD countries, the fall in real wages in the Czech Republic has been the most significant shift.

Analysis –Martin Zeman

The analysis is in PDF under the link below.