Czech state employees witness salary surge, Ministry of Finance reports

The total expenses on salaries and other personal costs for state employees surged by 18 billion Czech crowns, totaling 271.2 billion Czech crowns. This increase in expenses was fueled by various factors, including the addition of 6,950 new employees to the state’s payroll, bringing the total number to 484,128.

The rise in salary expenses is attributed to several elements, including drawing from reserve funds and off-budget sources, as well as utilizing saved funds from previous years. Additionally, the government’s decision to increase tariffs in the public sector by ten percent two years ago contributed to the surge in expenses. The impact of this decision was evident across various sectors, with notable increases observed in the salaries of state prosecutors, soldiers, members of security forces, and employees in offices.

The Ministry explained that the higher salaries in the public sector can be attributed to factors such as the presence of more individuals with higher education and extensive experience, coupled with lower turnover rates within the state. Furthermore, investments in regional education and the government’s decision to increase tariffs for academic staff at state universities and members of security forces also played a role in driving up salary expenses.

Looking ahead, the draft state budget for this year anticipates a further increase in expenses for state employees’ salaries and related payments for work performed. Despite projecting a decrease of 11,388 state-paid positions, the average gross monthly salary of a state employee is expected to rise by 1,181 Czech crowns to an average of 44,059 Czech crowns. The Ministry’s report underscores the importance of discussions in the Chamber of Deputies to approve the state budget for the upcoming year, reflecting the ongoing financial dynamics within the Czech public sector.