Employer Record in Czech Republic

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.

PeriodPayPayer
0 – 14 days60% of base salaryEmployer
15 – 44 days66% of base salarySocial Security
45 – 74 days72% of base salarySocial 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 IncomeTax Rate (%)
up to CZK 131,90115%
above CZK 131,90123%

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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