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Capital City
Prague
Currency
Czech Koruna
(
Kč
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
33.80%
Languages
Czech
Capital City
Prague
Currency
Czech Koruna
(
Kč
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
33.80%
Languages
Czech
The Czech Republic boasts a well-educated and skilled workforce, particularly in engineering, technology, and manufacturing.
Situated in the heart of Europe, the Czech Republic provides easy access to neighboring European markets, making it strategically located for businesses with regional or international operations.
The Czech Republic has a reputation for being business-friendly with a stable economic and political environment, making it conducive to long-term investments.
The Czech Republic stands out as one of the world's leading producers of exceptional developers. Its robust talent pool is consistently invigorated by the annual addition of over 8,000 IT graduates, ensuring a continuous supply of highly skilled professionals.
Businesses can only operate smoothly in The Czech Republic if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in The Czech Republic below, to avoid any compliance issues.
The legal structure in the Czech Republic requires both employers and employees to enter into a written employment agreement when hiring. This agreement must, at a minimum, encompass the following fundamental details:
We can help you get a new employee started in The Czech Republic quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
It is also worth noting that pre-employment medical checks are required before an employee starts, but remote employees are generally exempt unless their role involves specific health risks.
The Czech Republic adheres to a standard workweek of 40 hours, which translates to eight hours per day.
Overtime work is permissible but subject to restrictions, allowing a maximum of eight hours per week and 150 hours per year. For each overtime hour worked, employees must be compensated with an additional 25% of their standard hourly wage.
Probation periods in the Czech Republic are set at three months for non-managerial employees and six months for managerial employees. It's important to note that these probationary periods are fixed and cannot be extended beyond the initially stipulated duration
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1 January - 31 December is the 12-month accounting period that businesses in The Czech Republic use for financial and tax reporting purposes.
The payroll cycle in The Czech Republic is usually monthly, with employees being paid on the same day of each month as stipulated in contract.
The minimum wage for employees in The Czech Republic is typically 121.15 CZK per hour, amounting to ~18,900 CZK per month for a typical 40 hour work week.
In the Czech Republic, there is no legal obligation to provide a 13th-month salary. Nonetheless, numerous employers choose to offer a 13th-month salary bonus, often tied to performance metrics.
Employer payroll contributions are generally estimated at an additional 33.8% on top of the employee salary in The Czech Republic.
In The Czech Republic , the typical estimation for employee payroll contributions cost is around 11%.
Czech employees are subject to an individual income tax, calculated at 15% of their gross salary up to 141,764 CZK and 23% for the portion of the gross salary exceeding this threshold.
Participation in pension insurance (důchodové pojištění) is mandatory in the Czech Republic.
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In the Czech Republic, work permits and visas are essential for employers hiring non-EU/EEA/Swiss nationals. The main permits include the Employee Card for long-term employment, the Blue Card for highly skilled professionals, and the Intra-Company Transferee Card for employees moving within multinational companies. The process requires submitting essential documents like a valid passport, an employment contract, and proof of qualifications. Employers are responsible for sponsoring these applications and ensuring compliance with local labor laws. Processing times typically range from 30 to 60 days, making it important to plan well in advance for a smooth hiring process.
The annual leave entitlement in The Czech Republic is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
There are 13 national holidays in the Czech Republic:
Employees in the private sector are entitled to a minimum of four weeks of paid annual leave each year.
In the Czech Republic, employed women with at least 12 consecutive months of work before childbirth can access up to 28 weeks (seven months) of paid maternity leave. Additional details include:
Fathers are eligible for 14 days of paid paternity leave within the first 6 weeks after the birth of their child. Paternity leave is compensated by the state at 70% of the father's regular salary, up to a maximum contribution of 8,575 CZK.
In the Czech Republic, employees are eligible for sickness benefits for up to a maximum of 380 calendar days., with the following applicable details:
Parental leave can be taken by parents until their child turns 3 years old.
Employees are eligible for up to nine days of paid care leave to attend to a sick family member or provide care for a child under 10. Social Security reimburses this leave at 60% of the employee's gross salary for up to nine days.
Employees receive two days of leave for their wedding, one of which is compensated.
In the event of the death of an immediate family member, an employee can take up to three days of paid bereavement leave.
Employers are mandated to provide full-time employees with unpaid leave to fulfill their responsibilities as jurors, witnesses, plaintiffs, or defendants in court proceedings.
In Czech Republic, termination must be put in writing if the employer initiates the termination with the minimum notice period. In the case of indefinite-term contracts, the employer must provide a clear explanation for ending the employment. Employment may only be terminated for one of the following reasons:
In the Czech Republic, the notice period for both dismissals and resignations must be at least two months.
Severance pay is dependent on the employees length of service as specified below, and is only applicable in instances where contracts are terminated due to redundancy:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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