Officially, the Czech Republic is considered one of the EU countries with the lowest poverty rates. However, using a uniform European definition, nearly a quarter of the population lives below the poverty line.
Statistics on relative income poverty (AROP) have long placed the Czech Republic among the EU’s least impoverished countries. But the indicator is difficult to compare internationally, as it is based on national median incomes. A “poor” Austrian or Finn may have income equivalent to that of an average Czech household, according to a recent PAQ Research report.
Public discussion often highlights that the Czech Republic has the fewest people at risk of poverty in the EU. This refers to relative income poverty—households earning less than 60 per cent of the national median. EU-SILC data show around 10 per cent of Czech households fall into this category, compared with the EU average of 16 per cent.
The measure has limitations: it ignores factors such as wage garnishments, which are unusually common in the Czech Republic, and it applies uniform scales for households of different sizes across Europe, despite varying living conditions.
Median incomes—and therefore poverty thresholds—are higher in Western Europe. Eurostat stresses that poverty rates measure low income relative to others, not necessarily a low standard of living. To compare living standards, price differences must be considered using purchasing power standards (PPS), which reflect what people can actually afford.
Median household income in Luxembourg, Austria, or Ireland is roughly 1.9 times higher than in the Czech Republic and three times higher than in Bulgaria. Poor households in those countries (earning below 60 per cent of the national median) still enjoy a higher income and living standard than the average citizen in Bulgaria and are comparable to an average Czech household.
21 Per Cent of Czechs Are Poor by European Standards
A uniform European definition of poverty—households earning less than 60 per cent of the European median—helps overcome national discrepancies. In the Czech Republic, this threshold is around 19,500 CZK net per month for a single-person household.
Under this measure, 21 per cent of Czech households live below the European poverty line—more than double the number under the national definition. Across Central and Eastern Europe, many countries see an even larger share of households affected, including Bulgaria, Hungary, and Slovakia.
Who Is Most Affected
Certain groups in the Czech Republic are particularly vulnerable. Elderly people living alone are most at risk, with 62 per cent below the European poverty line compared with the EU average of 28 per cent. Single parents are also disproportionately affected, with 43 per cent below the line, well above the European average.
