Wages in 2021 and at its end still rose rapidly, although their real increase in the 4^th quarter dampened inflation to 1.3%

Wages were higher than in the pre-pandemic period for the whole of 2021 in all the 19 monitored sectors of the economy, with growth ranging from 2% to 24%. In the last quarter of 2021, only the wages in accommodation and food service activities, which still had the lowest average gross wage of all sectors of the economy, did not reach the level of two years ago.

The average nominal monthly wage of an employee in the economy of the SR in the 4^th quarter of last year increased by 6.9% year-on-year to EUR 1 331. At the same time, it exceeded the average wage before the pandemic (in the 4^th quarter of 2019) by EUR 154 (by 13.1%).

High inflation took a significant part of the growth in the last months of last year, so that real wages increased by only 1.3%. This is the lowest real growth since the 2^nd quarter of 2020, when the real wage in the SR dropped after a long time due to the COVID-19 pandemic. The seasonally adjusted average wage increased by 2% compared to the 3^rd quarter of 2021.

The year-on-year growth of the average nominal wage was recorded in the 4^th quarter of 2021 by all the 19 monitored sectors of the economy. Wages in accommodation and food service activities rose relatively fastest (by 16.7%), which, despite being the only sector, did not reach the level of the corresponding pre-pandemic period. High growth failed to cope with the decrease at the end of 2020. Wages in this sector have been the lowest for a long time and even in the last quarter of last year they represented less than 54% (EUR 713) of the average wage in the Slovak Republic. Despite the strongest year-on-year growth in wages in accommodation and food services, the gap with earnings in the best-paid sector in Slovakia has widened. The highest average wages have long been in information and communication (EUR 2 278), whose year-on-year growth was 7.7%.

In ten out of a total of 19 industries, wages in the 4^th quarter of 2021 were lower than the average for the entire Slovak economy. From a regional perspective, wages were below the average in all regions except Bratislavský kraj, which has the highest wages in the SR for a long time and currently reached the level of EUR 1 600. At the end of the year, wages increased year-on-year in all regions, the highest relative increase was in Košický kraj by 13.9%, Trenčiansky and Nitriansky kraj by 8.2% as well. At the same time, wages in all regions increased, at a double-digit rate, also compared to the corresponding pre-pandemic period (with the 4^th quarter of 2019). Wages rose the most rapidly, up to a fifth in two years, again in Košický kraj and the slowest in Bratislavský kraj by 10.7%.

Average monthly wage of an employee in 2021

The average nominal monthly wage of an employee in the economy of the SR reached the value of EUR 1 211 in 2021. It increased by 6.9% year-on-year, its growth rate was almost double as in 2020. It is the second highest year-on-year wage growth in the last decade (it was higher only in 2019). At the same time, monthly wages last year increased by 10.9% compared to the pre-pandemic period, which represented an increase by EUR 119.

Despite the higher inflation, real wage growth also increased; for the whole of 2021, real wages were higher by 3.6%. In 2020, real wage growth was only 1.9%.

Average wages increased year-on-year in nominal terms in all the 19 sectors of the economy, but the development of wages across the whole economy was quite different. The lowest growth, by 3.1%, was recorded in administrative services. Wages rose relatively fastest due to the  extraordinary remuneration paid and for overtime work during the pandemic in health care and social assistance by 13.8% (to EUR 1 395). At the same time, this sector recorded the most significant growth compared to the pre-pandemic situation. Compared to 2019, health and social care workers were doing better on average by EUR 267 per month (by 23.7%). The lowest growth of the nominal wage compared to the pre-pandemic period by only 1.9% was recorded by administrative services (EUR 966). The industry, which employs the most people of all sectors, showed a year-on-year increase in wages by 8.5% (to EUR 1 289) and at the same time an increase by more than 10% compared to the pre-pandemic period.

Even in 2021, as in the previous years, the average wage exceeded the national average only in Bratislavský kraj (EUR 1 482). In seven regions, the average gross wage exceeded the level of EUR 1 000. Prešovský kraj still remains the region with the lowest average wage (EUR 956). Last year, average wages rose year-on-year in all regions, with the highest relative increase in Košický kraj (by 11.1%) and the lowest in Bratislavský kraj (by 5.0%). Compared to the corresponding pre-pandemic period (with the year 2019), wages increased in relative terms again in Košický kraj by 13.7% and the least in Bratislavský kraj by 9.1%.