Construction companies are planning to increase their workers’ salaries by a percentage this year, similar to last year. The industry, which has long struggled with labour shortages, is reacting to inflation. Businesses want to retain employees and try to attract new ones. Wage increases and a change in legislation this year could make construction work more expensive. The average wage in the construction sector last year was CZK 37,028, 6.7 percent more than in 2022 and CZK 6,313 less than the overall average wage, according to data from the Czech Statistical Office (ČSÚ).
Skanska raised wages for all employees last year, combining a fixed amount increase and a percentage increase, said the company’s HR director Slavomíra Sedláčková. “We have been increasing wages at a higher rate for employees with the lowest incomes for a long time. Last year, we increased wages at a similar rate to the market and we expect a similar development this year,” she added.
Metrostav is also planning to give its employees a raise similar to the previous years. However, according to company spokesman Radim Mana, the wage increase will not be across the board for everyone. According to its spokeswoman Iveta Štočková, Vinci Construction CS has agreed with the trade union to increase wages by an average of eight percent this year. The average wage of Vinci workers has long been above the national average, she pointed out.
Strabag is also planning to increase earnings by one per cent from 1 April in all its tariff classes. In addition to the across-the-board adjustment, the company is also increasing salaries for individual employees, according to spokeswoman Edita Novotná. However, she said, as with other services, the pay increases may be reflected in the prices of construction work. “We also have to take into account maintaining competitiveness in the market. However, if we want to make working in construction an attractive option, we cannot afford not to reflect influences such as the inflation rate or the development of salaries in the private sector,” Novotná added.
According to the Construction Act, construction companies are now liable for the wages of their subcontractors up to the minimum wage. According to Adam Hussein, an associate at BDO Legal, the directive, to which the regulation is related, is intended to protect employees abroad. However, he said the amendment could also lead to the introduction of a so-called risk surcharge, which could then be reflected in construction prices. This could make large construction projects, where subcontracting chains are complicated, more expensive.
In the last quarter of last year, the average wage in the Czech Republic increased by 6.3 percent year-on-year to CZK 46,013, or CZK 2,734, according to the Czech Statistical Office. However, after accounting for inflation, which was 7.6 percent in the same period, wages fell by 1.2 percent in real terms. In the construction sector, the average wage rose by CZK 1,971 year-on-year to CZK 38,930 in the fourth quarter of last year. This year, according to Finance Minister Zbyněk Stanjura (ODS), real wages in the Czech Republic could increase by roughly three to four percent, with growth expected in the first quarter.
Source: ČSÚ and CTK
