After two years, wages of Slovaks finally rose faster than inflation, in real terms they were higher by almost 4% for the year 2024

Wages maintained both nominal and real growth in each quarter of last year, but its pace gradually slowed down since the spring. At the end of the year, two of the 19 sectors of the Slovak economy could no longer withstand the pace of inflation. However, industry, as the largest employer, recorded the highest real wage growth in the last decade.

The average nominal monthly wage of an employee in the Slovak economy in the 4th quarter of 2024 reached EUR 1 643, which represents a year-on-year increase by 4.7%. Compared to the corresponding period in 2023, employees received by EUR 74 more on average. After taking into account the rate of inflation, real wage growth in the last quarter of last year reached 1.6%. Thus, wages maintained not only nominal but also real growth for the fifth consecutive quarter, but its pace gradually slowed down since the spring. Seasonally adjusted average wages increased by 1.4% compared to the 3^rd quarter of 2024.

All 19 monitored sectors of the economy recorded an increase in the average nominal wage, ranging from 0.1% in the real estate sector to 10.9% in the field of electricity, gas and steam supply. After taking inflation into account, 17 sectors recorded a real wage growth, but in 2, wages dropped in real terms, namely in real estate by 2.9% and in public administration¹⁾ by 0.6%. Employees in 12 sectors achieved a higher real wage growth than the average for the entire Slovak economy. The wages of employees in energy supply (electricity, gas and steam), in water management (water supply), and in the field of art, entertainment and recreation improved the most.

Among the sectors employing the highest number of employees, during the 4th quarter of 2024, industry succeeded in the fight against inflation. Nominal wages in industry rose by 6.3% to EUR 1 765, while real growth reached 3.1%, which is higher than the average for the entire Slovak economy.

Trade, the second largest sector in terms of employment, experienced a nominal wage growth of 4.1% in the last quarter of 2024, with the average wage in the sector reaching EUR 1 513. However, its real value increased by only 1%.

They had the highest average monthly wage, exceeding EUR 2.7 thousand, in electricity, gas and steam supply, as well as in information and communication. In 9 out of 19 sectors of the economy, the wage was below the average value for the entire Slovak economy. Employees in accommodation and food services had the lowest wages, where the average salary reached only EUR 936. They are the only ones who still haven't crossed the threshold of EUR 1000.

From a regional point of view, only Bratislavský kraj maintained above-average wages (EUR 1 975 ). In the other regions, wages ranged from EUR 1 320 in Prešovský kraj to EUR 1 566 in Trenčiansky kraj. All regions recorded a year-on-year growth in nominal wages, with Banskobystrický kraj having the most significant increase by 6.3%. In real terms, wages rose in 7 out of 8 regions of Slovakia, only in Nitriansky kraj there was a decrease by 0.4%.

Average monthly wage in the Slovak economy for the year 2024

The average nominal monthly wage of an employee in the Slovak economy for the entire year 2024 reached EUR 1 524, a year-on-year increase by 6.6%, i.e. by EUR 94. Although the pace of wage growth has slowed down, in 2023 wages increased by almost 10%, it was still sufficient for wages to grow in real terms. After two years of slumps, wages achieved real growth, at the level of 3.7%. It was the highest real growth in the value of wages since 2019. This positive development was a affected by a significant drop in inflation during 2024 (to 2.8%) in combination with the ongoing, still sufficiently dynamic increase in wages.

Last year, average wages rose both in nominal and in real terms in 18 of the 19 monitored sectors, the least in construction and the most significant in the electricity, gas and steam supply. The only sector where wages decreased year-on-year were companies operating in real estate activities. Real growth above 5% was recorded in wages in 8 sectors, the most significant in electricity, gas and steam supply and also in education.

Among the sectors with the highest number of employees during 2024, industry maintained a higher growth rate. In industry, wages rose nominally by 8.5% to EUR 1 639. In real terms, their wages rose by 5.5%, which was the highest growth in the last decade. Trade, as the second largest employer, recorded an increase in average wages by 5.2% to EUR 1 429. However, real growth by 2.3% was below the national average.

Financial and insurance organizations, as well as suppliers of electricity, gas and steam, as well as enterprises in information and communication, had the highest average gross earnings exceeding EUR 2.5 thousand. 8 sectors had an above-average wage value compared to the entire Slovak economy. Employees of accommodation and food services have the lowest wages for a long time, and this also applied in 2024. Their average wage last year reached only EUR 889. This sector is the only one that has still not crossed the threshold of EUR 1000.

From the point of view of the size of the enterprises, the most significant increase in wages was seen in large enterprises, where remuneration is often governed by collective agreements. Enterprises with 500 to 999 employees increased average wages by 9.8% to EUR 1 885, real growth was 6.8%. The second highest growth was recorded by enterprises with 1 000 or more employees. In summary, for the entire year 2024, their average nominal wage rose by 8.2% to EUR 2 121, or by 5.3% in real terms.

Higher wages in Slovakia are also fundamentally influenced by regionalism Despite the fact that wages are gradually increasing in all regions, significant differences remain. Wages in Bratislavský kraj were still the highest (EUR 1 858). In the other regions, the average wages in total for the whole of last year ranged from EUR 1 195 in Prešovský kraj to EUR 1 419 in Trenčiansky kraj. During 2024, all regions recorded year-on-year nominal and real wage growth. The most significant growth was recorded in Banskobystrický kraj, where nominal wages rose on average by 8.1% and in real terms by 5.2%.