The average nominal wage in the Czech Republic increased by 8.1% yoy in 1Q26, following a 6.7% rise in the previous quarter (downwardly revised from an initial 7.4%). After seasonal adjustment, we estimate that this implies an increase in qoq wage growth from 1.8% to 2.9%. From a sectoral perspective, yoy wage growth continues to be driven by the private sector. There, the average nominal wage increased by 8.9% yoy in Q1, whereas in the public sector, growth was more moderate at 6.2% yoy. After adjusting for inflation, the purchasing power of the average wage increased by 6.4% yoy in 1Q26.

The average nominal wage in the Czech Republic increased by 8.1% yoy in 1Q26, following a 6.7% rise in the previous quarter (downwardly revised from an initial 7.4%). After seasonal adjustment, we estimate that this implies an increase in qoq wage growth from 1.8% to 2.9%. From a sectoral perspective, yoy wage growth continues to be driven by the private sector. There, the average nominal wage increased by 8.9% yoy in Q1, whereas in the public sector, growth was more moderate at 6.2% yoy. After adjusting for inflation, the purchasing power of the average wage increased by 6.4% yoy in 1Q26.

Current wage growth is also being boosted by a significant downward revision of wage levels over the past two years. The annual growth rate of average wages was reduced from 7.2% to 6.6% for both 2024 and 2025. In terms of total wage bill, this was offset in 2024 by a corresponding adjustment to the number of employees converted to full-time equivalents. While employment decreased by an average of 0.5% in 2024 prior to revisions, according to the Czech Statistical Office (ČSÚ), this figure remained roughly flat following the revision, with a decline occurring only last year. Consequently, the growth rate of the total volume of wages and salaries was only revised downwards in 2025.

Real gross wages and household consumption exceeded pre-pandemic levels from 4Q19 in 1Q26. Real gross wages have been rising continuously on a seasonally adjusted qoq basis for three years now, thereby erasing the decline seen between 2021 and 2023. However, gross wages may have overestimated the decline in purchasing power. This is because the wave of inflation at the net wage level was partially offset by a reduction in labour taxation (through the abolition of the super-gross wage) in 2021. The increase in employees’ purchasing power is also reflected in household consumption, which, along with fixed investment, remained one of the two main drivers of domestic economic growth from an expenditure perspective even at the start of this year.

Wage growth in 1Q25 exceeded both the CNB’s forecast and the market consensus. At 8.1% yoy, the observed nominal wage growth was significantly higher than the market consensus and the CNB’s forecast of 7% yoy. However, this can largely be attributed to the aforementioned downward revision of last year’s base: compared to the pre-revision level, the average wage in 1Q26 was 7.2% higher yoy. While strong wage growth that outpaces productivity growth points to pro-inflationary effects from the labour market at the start of the year, the scale of the historical revisions means that this data must be interpreted with caution. Inflationary pressures from the labour market could also be reinforced in the future by likely public sector salary increases, given that these have lagged behind private sector wage dynamics for some time. Overall, however, the closing of the gap between the trend in real wages and labour productivity suggests that wage growth as high as that seen at the start of this year is not sustainable in the long term.

The structural shift toward a higher share of employment in the services sector at the expense of industry is also continuing. The total number of employees, adjusted to full-time equivalents, rose by 0.5% qoq (and by 0.6% yoy) in Q1 after seasonal adjustment. Within individual sectors, the trend of increasing employment in services continued, while in industry, a slight qoq increase in employment was recorded following more than three years of continuous workforce reduction.

Today, Thursday, June 4, 2026, Philip Morris CR shares will be traded for the last time with the right to receive a dividend from the 2025 profits.

At the Annual General Meeting on May 29, 2026, shareholders approved a dividend of CZK1,100 per share. This corresponds to the distribution of all net profits from 2025.

The dividend offers a gross yield of +5.6%.

Dividend payments will begin on July 13, 2026.

Today, Thursday, June 4, 2026, Philip Morris CR shares will be traded for the last time with the right to receive a dividend from the 2025 profits.

At the Annual General Meeting on May 29, 2026, shareholders approved a dividend of CZK1,100 per share. This corresponds to the distribution of all net profits from 2025.

The dividend offers a gross yield of +5.6%.

Dividend payments will begin on July 13, 2026.