Basic information
Capital:Prague
Time zone: GMT+1
Languages: Czeck Language
Currency code:CZK
Human Resources at a Glance
Contract Terms
Contracts must be in Czech and can be bilingual. They must be in writing and signed by both parties. A contract must include:
- Name
- Start date
- Length of the employment
- Job description
- Termination conditions
Guidelines Regarding Probation Period/Trial Period
Probation periods are mandatory. The minimum probation period is 60 days. The maximum probation period is 180 days (6 months).
Regulations and Rules Regarding Working Hours
Standard regular working time is 40 hours per week, with limited statutory exceptions.
Minimum Wage Requirements
The minimum wage is CZK 18,900 per month.
Termination
Grounds
Terminations in the Czech Republic must be in writing if the contract is terminated by the employer with the minimum notice. For indefinite term contracts, the employer must indicate the reason for the termination of the employment.
Compliant terminations include:
- Voluntarily by the employee
- Unilaterally by the employer based on:
- Unsatisfactory performance
- Probation period without notice
- Disciplinary dismissal without notice
- By the expiration of the contract
For fixed-term contracts, the termination may be without cause.
Notice Period
The minimum notice period is 60 days and can be increased up to 180 days for managerial positions.
Payment & leave Compensation & Holidays
SalaryPayment
Salaries are normally paid on a fixed pay date by transfer to a bank account.
The salary is payable for work carried out and is payable at the latest during the following month.
Payslip
On the monthly salary payment date, the employer is required to issue the employee with a written document. This must include information about individual salary components and deductions. If the employee makes the request, all documents used to calculate the wage must be presented.
Annual Leave
Full-time employees are entitled to 20 working days, or 160 working hours of paid time off (PTO) a year. PTO accrues monthly 1.67 days or 13.3 working hours per month. Employees are eligible for annual leave after 2 months of work.
For part-time employees, PTO is accrued according to the number of monthly working hours.
Sick Leave
Employees are entitled to paid sick leave for up to 74 days. The first 14 days are paid by the employer, and the following will be covered by Social Security.
Period | Pay | Payer |
0 – 14 days | 60% of base salary | Employer |
15 – 44 days | 66% of base salary | Social Security |
45 – 74 days | 72% of base salary | Social Security |
Maternity & Parental Leave
Employees who have contributed to sickness insurance for at least 270 calendar days in the preceding 2 years are entitled to 28 weeks of paid leave, or 36 weeks in case of births of multiple children. The leave must start 6 weeks before the expected delivery date.
The employee will receive 70% of the assessment base, with a maximum of CZK 49,440 per month, paid by Social Security. The assessment base is calculated from the gross income for the last 12 months divided by the number of calendar days in the given period.
Employees who have contributed to sickness insurance for 3 months without interruption preceding paternity leave are entitled to 14 days of paid leave. The leave must start within 6 weeks of the child’s birth.
The employee will receive 70% of the assessment base, paid by Social Security. The assessment base is calculated from the gross income for the last 12 months divided by the number of calendar days in the given period。
Tax and Social Security Information
Personal Income Tax
The individual income tax ranges from 15% to 23%. Income tax is calculated according to progressive rates.
Gross Annual Income | Tax Rate (%) |
up to CZK 131,901 | 15% |
above CZK 131,901 | 23% |
Social Security
Social security taxes are required for an individual employed by a Czech company. Mandatory contributions are calculated from the individual’s gross remuneration. This amount includes most of the employees’ benefits and allowances. Income subject to income tax is generally subject to contributions to the social security and health insurance system.
The contribution rates for the employer are 24.8% for social security and 9% for health insurance.
The contribution rates for the employee are 7.1% for social security and 4.5% for health insurance.
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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