☑️ The Basics

Currency: Czech koruna, CZK (Rate)

Public Holidays: 13 public holidays (see here)

Employer Taxes: 33.80% of gross salary

Official Language: Czech

Payroll frequency: Monthly

Three things to know about employing in the Czech Republic

1. Employees subject to non-compete agreements are entitled to a compensation of at least half their salary for each month of the agreement's duration.
2. Overtime work can be paid compensated either by payment at higher rate of wages or by giving employees additional time off. For work over the holidays, employees are entitled to their wages plus time off.
3. More and more companies are now beginning to offer perks such as an additional week of paid holiday, 13th month salary, and up to 55% of meal vouchers for employees.

Employment in the Czech Republic

Notice Period

The notice period for both dismissals and resignations must be at least two months.

Termination & Severance

Severance pay depends on how long the employee has been employed:

• One year of employment: One months’ gross salary
• Two years of employment: two months’ gross salary
• More than two years of employment: Three months’ gross salary

Probationary period

Three consecutive months for regular employees and up to six consecutive months for chief officers.

Minimum Wage

14,600 CZK per month

IP protection and non-compete agreements

Non-compete agreements can be for a maximum of one year. Employers must remunerate the employee for each month of the non-compete agreement with an amount that is equal to at least the half of employee's average earnings.

Working Hours

A full-time work week is 40 hours or eight hours per day. The length of a shift cannot exceed 12 hours.

Overtime

Any work performed outside of working hours counts as overtime and this cannot exceed 150 hours within a calendar year.

Overtime is typically paid at 125% of regular pay. It is also possible to give additional time off in place of overtime pay.

For work over the weekend, the overtime pay rate is 110% of the regular wages.

For work over the holidays, employees are entitled to their wages plus time off.

Paid Holidays

Employees are entitled to four weeks of paid leave in a year.

Sick pay and time off

Employees are entitled to paid sick leave. During the first 14 days of leave, eligible employees receive 60% of their regular wages. From the 15th day, they are entitled to sickness benefit paid from sickness insurance.

Sickness benefits can be availed for a maximum of 380 calendar days.

Parental leave

Employees are entitled to 28 weeks of maternity leave (37 weeks for multiple births). The leave can start at least eight weeks before the expected due date, but no later than six weeks.

Maternity leave is compensated at 70% of regular salary. To be eligible for this, the employee must have paid paying sickness insurance for at least 270 days in the last two years.

Employees are also entitled to seven days' paternity leave within the first six weeks from the child's birth. This is paid at 70% of their salary and capped at 8,575 CZK.

Taxes in the Czech Republic

<aside> 💡 You can get a detailed breakdown of the employer contributions for any gross salary by using our Oyster Platform Quote Generator.

For access please email [email protected].

</aside>

Employees

Social Security (11%)

Income tax (15% flat rate)

Employers

Total social contributions (33.80%)

• Pension: 21.5%
• Sickness: 2.1%
• Unemployment: 1.2%
• Health Insurance: 9%

<aside> 🌍 ← Country Knowledge Base

</aside>

<aside> 🚀 Check out our public Oyster HQ

</aside>

<aside> 📚 Visit Fully Distributed, the Oyster future of work blog.

</aside>