- With an average monthly wage of about US$ 350 in 1996, the cost of labour is lower than in either Hungary or Poland.
- For foreign firms in the CR, payments for employee insurance are lower than in either Hungary or Poland.
- The movement toward a competitive free market economy has encouraged efficiency measures and personnel streamlining, creating a pool of available skilled labour.
- The CR has a history of high industrial productivity, having created the seventh largest GDP per capita in the world prior to the ascension of the Communist regime.
- As industry continues to rationalise, more labour will be released onto the labour market
- The working age population will continue to increase, from 51% of the population in 1993 to 53.7% in 1995. The percentage of people working past retirement age in the CR is among the highest in the world, surpassing that of either Hungary or Poland.
- The Czech workforce is skilled and educated, with a 1991 (census) literacy level of 98.9%. According to a 1995 OECD report on education, the CR produces a higher percentage of science and engineering graduates than any other country in the world.
- The CR's domestic workforce comprises 51% of the 10.33 million population - 5.3 million people. The official working age is 15-57 for women and 15-60 for men.
All foreign companies registered in the Czech Commercial Register must pay a total of 35 % of their Czech employees' gross salaries toward social security and health insurance funds.
BREAKDOWN OF EMPLOYER INSURANCE CONTRIBUTIONS
Pension Fund 19.5 % Health Insurance 9% Sickness Benefit 3.3% Unemployment Fund 3.2%
BASIC MONTHLY WAGE
(in foreign owned an partnered manufacturing operations) $ Management/Administration Plant Manager 1,371 Personnel manager 635 Production Manager 1,049 Quality Control Manager 764 Logistics Manager 668 Maintenance Manager 535 Accountant 444 PRODUCTION Shift Leader 506 Skilled Operator 315 Unskilled Operator 265 Source:Coopers & Lybrand, 1996 June
US$ Annual: Total remuneration: 1995 Czech Republic Hungary Poland Plant manager 16,621 32,913 30,056 Head of Human Resources 14,064 24,380 19,859 Production manager 10,839 15,472 13,519 Maintenance specialist 6,286 12,659 11,626 Secretary 5,718 5,626 7,872 Office administrator 4,801 3,282 5,607 Buyer/Administrator 4,795 5,532 5,230 Warehouse supervisor 5,893 7,400 9,381 Shiftleader 5,893 6,095 5,284 Electrician 4,201 4,464 6,330 Mechanic 4,201 3,999 6,279 Skilled operator (craftsman) 3,649 4,185 4,850 Operator (unskilled) 3,055 3,162 3,624 Material Handler 3,607 3,255 4,390 Cleaner 2,801 2,511 3,573 Source - Hewitts: based on actual survey data for foreign and multinationals operating in each country. Total remuneration includes salary and wages, bonuses, profit sharing, cost of living and local market value adjustments
For further information contact CzechInvest at Politickych veznu 20, 112 49 Prague 1, Czech Republic Phone (420-2) 2422-1540 Fax: (420-2) 2422-1804
NOTE: Although we have made every effort to ensure the reliability of our sources, CzechInvest does not assume responsibility for its accuracy.