For the foreign investor, the Czech Republic (CR) can offer an increasingly large, highly skilled, and cost-effective workforce.

  • 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.

AVAILABLE WORKFORCE

  • 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.

COST

Wages

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

WAGE COMPARISON


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.