Recruiter's Diary

Recruiter's Diary

Pomáhám organizacím najít nové zaměstnance do IT a lidem tu pravou práci. Odjakživa mám blízko k lidem a baví mě nalézat řešení tam, kde jiní tápou.


With summer approaching, it’s a good time to take a look at the latest information, statistics and trends impacting wages and the IT labor market in the Czech Republic.

Hana Kopřivová

4 minutes read

Few would probably argue with the statement that there are still not enough IT professionals on the job market to meet organizations’ demand for new talent. This situation has been ongoing for a long time and has not changed significantly in the recent past. Yet, there has been at least a slight improvement in the last 12 months.

The Czech Statistical Office, in its Analysis of the Czech Labor Market in Q1 2023, mentions a positive trend - a relative year-on-year growth in the number of employees in the Information and communication technology sector by 2,4 %, i.e., by 3,2 thousand jobs to a total of 135,9 thousand employees. To put this in perspective, Q1 2022 saw a 4,5 % increase in the number of employees, or 5,7 thousand employees.

It is also good news that the average IT salary has increased to 8,503 CZK gross per month in Q1 2022, which is an average increase by 8,652 CZK. This is the second highest increase in average wages across all sectors over the given period. Salaries in the IT sector were exceeded only by the earnings of employees in the energy industry (specifically in the electricity, gas, heat and air-conditioning production and distribution sectors), where average wages increased by 23,1 % to 79,221 CZK.

However, due to the impact of the high inflation level, the average real (adjusted) wage decreased by 6,7 % in Q1 2023. However, this is a lower decrease than in 2022, when real wages went down by 8,5 %. For completeness, the last increase in real wages occurred in 2021 by 1,9 %.

Based on the data available in the Average Earnings Information System, we can see how and in which subgroups and job categories (according to CZ-ISCO) the increase in IT wages in 2022 was reflected. The data for 2023 will be published in March next year, so we will also take a retrospective look at those then.

We can see the most significant wage increases for 2022 for these selected job categories:

  • No. 13301 ICT Production and technical deputies (directors) specifically by 37, 245 CZK
  • No. 13303 Telecommunications managers by 23,191 CZK
  • No. 1330 Information and communication technology managers by 15,994 CZK
  • No. 2519 Software testing specialists and related professionals by 13,398 CZK
  • No. 13302 Information technology and operations managers by 12,140 CZK
  • No. 2523 Computer network specialists (excepting administrators) by 11,069 CZK
  • No. 2434 Information and communication technology sales and purchasing specialists by 10,778 CZK
  • No. 2514 Computer application programmers, specialists by 8,933 CZK

You can see exactly what the increase in other occupational categories looked like in the chart below:

IT Salaries increase

Wages for executives continued to increase the most in 2022. However, the increase in wages for testing specialists and computer network specialists is interesting and quite significant compared to 2021 values. Also, worth mentioning is the relatively low average wage increase for computer application programmers and specialists, where we would expect a noticeably higher figure considering the high competition and the demand on the labor market.

In spite of the above-described wage increases on the labor market, we can currently see that companies are becoming more cautious with their finances than before. This is reflected in cost optimization, in making savings, in finding ways to increase labor efficiency and, last but not least, in slowly reassessing benefits and considering how to replace them if necessary. What the impact of this will be is not yet clear, as much will depend on the final form of the government’s fiscal consolidation package and its impact on the benefit costs for employers.

Some organizations have already decided to take a different route with regard to benefits and have introduced an inflation allowance for employees. More often, however, companies are introducing longer paid leave beyond the standard 25 days, or a financial contribution towards holidays or the ability to work extensively from abroad or rewarding employees for their loyalty by offering financial recognition for years of service or on working anniversaries. Investing in employee professional training and supporting certifications, which are relatively costly and may not always be affordable for individuals, are still considered valuable benefits as well.

In the Information and communication technology field, it is still true that candidates have the opportunity to choose the most suitable position for them due to the high demand in the job market, and they are taking advantage of it. Therefore, organizations should have the level of financial compensation they offer set up and periodically reviewed in such a way, which would ensure that the salaries always reflect the value of the IT professional on the labor market and so that the company can successfully compete when looking for new employees.

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