Czech teacher salaries continue to lag behind OECD average, but why?
With the start of the school year, the long-standing issue of teacher salaries in Czechia returns to the spotlight. Despite a government promise to raise teachers’ pay, they continue to lag behind other developed nations. But why? I spoke to Vladimír Vaňo, Economist Fellow at GLOBSEC, to find out what’s behind the numbers.
The Czech salaries for teachers are about 108 or 109% of the national average income. And when compared to other neighboring countries, teacher salaries tend to be closer to 130% of the national average. Could you comment on why it's taking so long for the Czech Republic to increase these salaries?
“Sure. OECD statistics show that spending on teacher salaries in primary and secondary education in Czechia is around 1.8% of GDP, which significantly lags behind, not just the OECD average, but also neighboring countries. For example, Austria spends about 2.5%, and Canada 2.6% of GDP.
“There was a catch-up period in teacher pay between 2017 and 2021. But after the Ukrainian crisis triggered spikes in energy and food prices, inflation outpaced teacher salary growth. As a result, the percentage of the average salary earned by teachers has declined from a peak of 125% in 2021 to around 108% today. This year’s estimates suggest only a slight adjustment.”
So, why is it good for an economy to have higher-paid teachers?
“Yes, then the strategic answer on what has created this lag. Teacher salaries are typically treated as current expenditures, like any other public servant's salary. But in reality, they should be considered a form of capital investment. Paying teachers well is a long-term investment in the quality of the workforce.
“When workforce quality declines, it affects a country’s competitiveness, its ability to attract foreign investment, foster innovation, and support startups. From a policy standpoint, there’s an ideological divide: Should primary and secondary education be treated as a public good, benefiting society as a whole, or a private one, where families shoulder more responsibility?
“If education is underfunded, families with more resources will pay for extra tutoring and enrichment activities, while lower-income children rely solely on public education. This widens and entrenches socio-economic divides, leading to long-term inequality in job and income opportunities.
“From a macroeconomic perspective, underpaid teachers also create a ticking time bomb. Because of short-term political cycles, there’s often a lack of long-term planning. If salaries aren’t attractive enough, we won’t recruit enough qualified new teachers.
“For context, a 10% increase in teacher salaries in Czechia would amount to about 0.2% of GDP. But unlike many public sector roles, the product of teachers is a well-educated population. And we will see that reflected either positively or not [in the years to come].”
