According to the Czech Statistical Office, the average monthly salary in the Czech Republic is now CZK 31,516, marking an 8.5% increase when compared to the same time period last year.

This means that on average, Czechs almost earn CZK 2,500 more than they did in the third quarter of 2017, while salary growth is set to experience a 15-year-high record in 2018.

Additionally, the median wage is recording even faster growth, with year-on-year changes as high as 9.8%. According to BH Securities economist Štěpán Křeček, thanks to the salaries of those who earn less growing faster than those who are wealthier, the gap between rich and poor is slowly narrowing. Women’s salaries are also continuing to grow much faster than those of men, despite still falling behind.

Business intelligence portal Statista revealed that the Czech Republic is currently home to the lowest unemployment levels in Europe, and economists say this has mainly caused the increase in wages.

With that said, salaries still vary significantly by region – with the average employee in Prague earning CZK 11,304 more than one in Karlovy Vary. According to economists, this could cause people to move away from regions where earnings are lower.

Although the growth in salaries will continue, analysts from Komerční banka told Czech Television that the growth pace is likely to slow down due to a decrease in profits which will inevitably result in lower bonuses.

This salary growth trend is not limited to the Czech Republic, but is also being recorded across the wider central European region.