The Czech Republic
Before hiring
Before hiring employees in the Czech Republic, there are a few important things you’ll need to know. Firstly, it’s becoming more common in the Czech Republic for employers to offer perks like an additional week of paid holiday. In order to stay competitive, it’s important to know what employees in the Czech Republic expect.
Employers in the Czech Republic can also opt to give employees additional time off in lieu of overtime pay.
We know this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform.
Get an overview of what you need to know when hiring in the Czech Republic below.
At a Glance
CURRENCY
CZK
OFFICIAL LANGUAGE
CZECH
PAYROLL FREQUENCY
MONTHLY
EMPLOYER TAXES
33.80%
13th / 14th SALARY
N/A
Good to know
- Employees in the Czech Republic subject to non-compete agreements are entitled to a compensation of at least half their salary for each month of the agreement's duration.
- Overtime work can be compensated either by payment at a 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.
- More and more companies in the Czech Republic 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
A full-time work week in the Czech Republic is 40 hours or eight hours per day. The length of a shift cannot exceed 12 hours.
Any work performed outside of working hours counts as overtime, and it 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 in the Czech Republic are entitled to their wages plus time off.
The probationary period in the Czech Republic is three consecutive months for regular employees and up to six consecutive months for chief officers.
In the Czech Republic, the notice period for both dismissals and resignations must be at least two months.
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 half of the employee's average earnings.
Employment cost calculator
Paid time off
Employees in the Czech Republic are entitled to four weeks of paid leave in a year.
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 benefits paid from sickness insurance.
Sickness benefits can be availed for a maximum of 380 calendar days.
Employees in the Czech Republic are entitled to 28 weeks of maternity leave, or 37 weeks if the employee gives birth to multiples. 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 an employee’s regular salary. To be eligible for this, the employee must have paid sickness insurance for at least 270 days in the last two years.
Employees are also entitled to seven days of 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.
Employer tax
In the Czech Republic, employees pay 33.80% of an employee’s salary in social contributions. This includes coverage for pension, sickness, unemployment, and health insurance.
Individual tax
Employees in the Czech Republic pay a flat rate of 15% income tax no matter their salary bracket. Employees also pay 11% in social security contributions.
Termination of employment
Severance pay in the Czech Republic depends on how long the employee has been employed. The breakdown is as follows:
- 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
Start hiring employees in
The Czech Republic
Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast.
We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.
With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.
