Czech Republic
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Czech Republic
Everything you need to know about payroll, benefits & hiring top talent in Czech Republic
Currency
Czech Koruna (CZK)
Salary payment frequency
Monthly
Capital
Prague
Time Zone
GMT +1:00
Official Languages
Czech
Is English spoken?
Yes
Quick Links
Introduction
General Overview & Economic Facts
- The Czech Republic, also known as Czechia and formerly known as Bohemia, is a landlocked country in Central Europe
- The Czech Republic is one of the safest countries in the world, with a high standard of living
- The Czech Republic’s economy ranks 48th by nominal GDP (2021) and 47th by PPP (2021)
- The Czech Republic ranks 27th on the HDI (2019)
Why Employ In Czech Republic?
- The main exports from the Czech Republic are automobiles, machinery and information and communications technology
- Population demographic- 9.59% of the population is between the ages of 15 and 24 years, with 43.84% of the population being between the ages of 25 and 54. The Czech Republic has a fairly youthful population, making it a favourable country to employ young, energetic employees
Overview Of The Labour Law
- The main source of labour law in the Czech Republic is the Labour Code
- Government regulations and European Union law are additional sources of Czech employment law. Case law is often used as an interpretation source
- Collective bargaining agreements are also applicable to employment relationships
- Labour laws are quite strict and are generally weighted toward the employee
Fun Country Facts
- The Czech Republic has the most castles in Europe
- Mushroom hunting is a favourite activity for Czech people
- Sigmund Freud was born in the Czech Republic
Why Use Playroll Services For Czech Republic?
- Employing in Czech Republic requires companies to have their own legal entity in the country as well as to manage payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Czech Republic.
- With Playroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus
Social Security
Sickness Insurance
2.10%
Calculated on a maximum salary of CZK 1,701,168.00 per year
Pension Insurance
21.5%
State Employment Policy
1.20%
Supplementary Pension Scheme
Employer may choose to contribute to the supplementary pension scheme.
Health Insurance
9.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Social Security
Sickness and Maternity Insurance
6.50%
Calculated on a maximum salary of CZK 1,701,168.00 per year
Health Insurance
4.50%
Income Tax
Income tax is on worldwide income
Income bracket per annum
0.00 – 1,701,168.00
15.00%
1,701,168.00 or more
23.00%
Employment Terms
General
Minimum Wage
Minimum wage varies by nature of work performed:
- Individual work of the same kind- CZK 16,200.00 per month
- Unambiguous work with frame assignment- CZK 16,800.00 per month
- Diverse, frame-defined assignment work- CZK 18,500.00 per month
- Professional work with integrated stand-alone systems- CZK 20,500.00 per month
- Professional specialized work- CZK 22,600.00 per month
- System work- CZK 24,900.00 per month
- Systemic specialized work- CZK 27,500.00 per month
Working Hours
- Maximum of 8 hours per day and 40 hours per week
- Minimum of 30-minute meal interval after 6 hours of work
- Typical working hours are 08h00 to 16h30, Monday to Friday
Overtime
- Maximum of 8 hours per week and 150 hours per year
Notice Period
- 2 months
Severance Pay
- Employed between 0 and 1 year- 1 months’ salary
- Employed between 1 and 2 years- 2 months’ salary
- Employed for 2 or more years- 3 months’ salary
Probation Period
- No statutory probation period
- It is common to have a probation period between 3 and 6 months
Bonus
- There is no statutory bonus
Public Holidays
Public holidays 2022
January 1st – New Year’s Day
- April 15th – Good Friday
- April 18th – Easter Monday
- May 1st – May Day
- May 8th – Liberation Day
- May 26th – Ascension Day
- July 5th – St Cyril and St Methodius Day
- July 6th – Jan Hus Day
- September 28th – Statehood Day
- October 28th – Independence Day
- November 17th – Freedom and Democracy Day
- December 24th – Christmas Eve
- December 25th – Christmas Day
- December 26th – 2nd Day of Christmas
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by employer
- 4 weeks per year
Sick Leave
- Paid leave
- Paid by employer and Social Security
- 380 days
Maternity Leave
- Paid leave
- Paid by Social Security
- Single birth- 28 days per year, multiple births- 37 days per year
Paternity Leave
- Paid leave
- Paid by Social Security
- 10 days per year
Parental Leave
- Paid leave
- Paid by Social Security
- Parental allowance capped at a total of CZK 300,000.00 until the child reaches the age of four
Adoption Leave
- Paid leave
- Paid by Social Security
- Single birth- 22 days per year
- Multiple births- 31 days per year
Start hiring in Czech Republic today!