Basic Information
Capital: Prague
Time Zone:GMT+1
Language: Czech
Currency Code:CZK
Human Resources at a Glance
Contract Terms
The contract must be in Czech or bilingual. Must be in writing and signed by both parties. The contract must include:
name
Start date
Duration of employment
Job description
Termination Conditions
Guidelines Regarding Probation Period/Trial Period
The probationary period is mandatory. The minimum trial period is 60 days. The maximum trial period is 180 days (6 months).
Regulations and Rules Regarding Working Hours
The standard working hours are 8 hours per day and 40 hours per week. The standard work week runs from Monday to Friday.
Minimum Wage Requirements
The minimum wage is CZK 18,900 per month.
Payroll Cost
Employer costs are typically estimated at 34% of an employee’s salary.
Social Security – 24.8%
Public Health Insurance – 9.0%
Workers’ Compensation Insurance – 0.186%
One-time fee:
Medical examination fee: 500-1000 CZK
Equipment allowance: 500 CZK
Termination
Grounds
In the Czech Republic, if the employer terminates the contract with a minimum notice period, the dismissal must be in writing. For contracts with an indefinite term, the employer must state the reason for terminating the employment.
Compliant dismissals include:
Employees voluntarily leave their jobs
The employer unilaterally dismisses on the basis of:
Poor performance
No notice is required during the trial period
Disciplinary dismissal without notice
The contract expires
For fixed-term contracts, termination can be done without cause.
Notice Period
The minimum notice period is 60 days, which can be extended to 180 days for managerial positions.
Redundancy/Severance Pay
In the Czech Republic, employees who are unilaterally dismissed by their employer are entitled to a severance pay. The severance pay will depend on the length of service:
1 year of employment: 1 month’s gross salary
2 years of employment: 2 months of gross salary
More than 3 years of employment: 3 months’ total salary
If an employee believes that the dismissal is unfair, they have the right to appeal to the court to increase the termination pay.
Payment&Leave Compensation & Holidays
Salary Payment
Wages are usually paid by bank account transfer on a fixed payday. Wages are paid based on the work done and are paid up to the following month at the latest.
Payslip Payroll
On the monthly payroll day, the employer must issue a written document to the employee. This must include information about the individual’s salary components and deductions. If the employee asks for it, all documents used to calculate wages must be presented.
Annual Leave
Full-time employees are entitled to 20 working days or 160 hours of paid leave (PTO) per year. Paid leave accrues 1.67 days or 13.3 working hours per month. Employees are eligible for annual leave after 2 months of employment.
For part-time employees, paid leave accrues based on the number of hours worked per month.
Sick Leave
Employees are entitled to up to 74 days of paid sick leave. The first 14 days are paid by the employer, and the rest is paid by social security.
The sickness benefit (per calendar day) amounts to:
60% of the reduced daily assessment base for the first 30 days of temporary incapacity for work or ordered quarantine.
66% of the reduced daily assessment base from the 31st day to the 60th day of temporary incapacity for work or ordered quarantine.
72% of the reduced daily assessment base from the 61st day of temporary incapacity for work or ordered quarantine.
Maternity & Parental Leave
Employees who have accumulated at least 270 calendar days of sick leave insurance in the last 2 years are entitled to 28 weeks of paid maternity leave, or 36 weeks of maternity leave when multiple children are born. Maternity leave must begin 6 weeks before the expected date of delivery.
Employees will receive 70% of the assessment base up to a maximum of CZK 49,440 per month, covered by social security. The assessment base is calculated based on the total revenue for the last 12 months divided by the number of calendar days in a given period.
Tax and Social Security Information for Employers
Personal Income Tax
Personal income tax ranges from 15% to 23%. Income tax is calculated at a progressive rate.
| Total annual revenue | rate (%) |
| Not more than CZK 131,901 | 15% |
| More than CZK 131,901 | 23% |
Social Security
Individuals employed by Czech companies are subject to social security taxes. Mandatory contributions are calculated based on the individual’s total remuneration. This amount includes most employee benefits and allowances. Income subject to income tax is usually subject to social security and health insurance systems.
The employer’s social insurance contribution rate is 24.8% and the health insurance contribution rate is 9%.
The employee social insurance contribution rate is 7.1% and the health insurance contribution rate is 4.5%.
Public Holidays 2024
| Occasion | Date |
| New Year’s Day | 1.1 |
| Good Friday | 3.29 |
| Easter Monday | 4.1 |
| Labour Day | 5.1 |
| Liberation Day | 5.8 |
| Saints Cyril and Methodius’Day | 7.5 |
| Jan Hus Day | 7.6 |
| Czech Statehood Day | 9.28 |
| Independence Day | 10.28 |
| Freedom and Democracy Day | 11.17 |
| Christmgs Eve | 12.24 |
| Christmas Day | 12.25 |
| Second Day of Christmas | 12.26 |
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