The average nominal wage in the Czech Republic increased by 7.4% yoy in 4Q25, up from 7.1% in the previous quarter. After seasonal adjustment, we estimate that this represents an increase in qoq wage growth from 1.2% to 1.9%, with extraordinary bonuses also likely contributing to the acceleration to some extent. From a sectoral perspective, yoy wage growth continues to be driven by the private sector where the average nominal wage increased by 7.8% yoy, compared to an increase of 6.4% in the public sector. After adjusting for inflation, the purchasing power of the average wage increased by 5.1% yoy in 4Q25. On a full-year basis, wages increased by an average of 7.2% in nominal terms in 2025 (the same as in 2023 and 2024) and by 4.6% in real terms.

The average nominal wage in the Czech Republic increased by 7.4% yoy in 4Q25, up from 7.1% in the previous quarter. After seasonal adjustment, we estimate that this represents an increase in qoq wage growth from 1.2% to 1.9%, with extraordinary bonuses also likely contributing to the acceleration to some extent. From a sectoral perspective, yoy wage growth continues to be driven by the private sector where the average nominal wage increased by 7.8% yoy, compared to an increase of 6.4% in the public sector. After adjusting for inflation, the purchasing power of the average wage increased by 5.1% yoy in 4Q25. On a full-year basis, wages increased by an average of 7.2% in nominal terms in 2025 (the same as in 2023 and 2024) and by 4.6% in real terms.

Real gross wages and household consumption reached pre-pandemic levels in 4Q25. After seasonal adjustment, real gross wages grew for eleven consecutive quarters on a qoq basis, thus erasing their decline from 2021 to 2023 after six years. However, the actual decline in purchasing power may have been partially underestimated given that the rising cost of living was partially offset by a reduction in labour taxation (through the abolition of super-gross wages) from 2021. The increase in employees’ purchasing power is reflected in household consumption, which was the main driver of growth in the domestic economy last year from an expenditure perspective.

Wage growth in 4Q25 slightly exceeded both the CNB’s forecast and the market consensus. The observed data were broadly in line with our prediction, as we had expected wage growth to be 0.1pp lower. The market median predicted real wage growth of 4.7% yoy, whereas the central bank predicted 4.8% yoy. The actual figure was thus 0.3pp higher than the CNB’s forecast due to higher wage growth in market sectors. Today’s data therefore slightly shifts the balance of risks of the CNB’s February forecast, which assumes the key repo rate to remain at 3.5% and increase in 2H26, in a pro-inflationary direction. Overall, given robust domestic demand, persistent inflationary pressures in services and increased uncertainty stemming from the conflict in the Middle East, we do not expect the CNB to cut interest rates in the coming months in the baseline scenario.

From a long-term perspective, real wages are broadly in line with the trend in labour productivity. Although they are growing steadily, we do not believe that this will cause excessive inflationary pressures in the near future. In our view, the convergence of wage and productivity trends will contribute to a slowdown in wage dynamics this year, when the average wage growth may exceed 6%. For the first time since 2021, the pandemic year, public sector salaries could also contribute more visibly to this, as we estimate them to outpace slightly private sector wages.

The proportion of employees in the services sector continues to grow at the expense of industry. After seasonal adjustment, the total number of employees converted to full-time equivalents remained virtually unchanged in the fourth quarter (an increase of 0.1%), but labour shifts between sectors continue.  Although the number of employees in industry has fallen continuously for more than three years, this has been offset by an increase in the services workforce, particularly in education, healthcare, and leisure services.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares.

Colt CZ plans dual list the Euronext Amsterdam stock exchange. It also plans to increase its capital.

Both steps require shareholder approval at the General Meeting on April 10, 2026, at 2:00 p.m. The record date to participate in the meeting is April 3, 2026. With a standard T+2 settlement period, Colt CZ shares will be traded for the last time with the right to participate in the General Meeting on Wednesday, April 1, 2026.

Dual Listing: Shareholders will vote on admitting Colt shares to trading on the Euronext Amsterdam regulated market. Consequently, the shares will be traded on both the Prime Market of the Prague Stock Exchange and in Amsterdam. The shares will be fully interchangeable on both trading floors. This step should increase liquidity and prestige, making the shares more attractive, especially to large investors.

Capital Increase: Colt plans to issue a maximum of 9,395,586 new shares. The price range is set at CZK600–1,500. The board of directors may increase the capital several times, but only up to the specified amount. Only new shares will be sold. Proceeds will fund technology, modernization, increased production capacity, R&D, acquisitions, and debt reduction.

The stated number of new shares represents 15% of the outstanding shares. It is unclear whether the current majority owner, Ceska zbrojovka Partners SE, will participate in the subscription. Ceska zbrojovka currently owns approximately 47% of the company, a stake that could shrink to 40% if it does not participate in the offering. However, it would still retain a majority stake.  

These steps could take place in the first half of this year. We would like to remind you that the last capital increase was related to the settlement of the SNC acquisition, when Colt issued 6,174,214 shares at a price of CZK 723 at the beginning of the year.