Overview

Capital
Prague
Currency
Czech Koruna (CZK)
Date Format
dd/mm/yyyy

COVID-19

Due to COVID-19, foreign workers who hold a “blue card” are able to change employers within 6 months of initial employment. The new employer is required to submit notice to the Minister of Interior on the first day of employment. There is no clear expiration date for this rule change to expire.

Contributions

Employer

Employer Payroll Contributions

(Taxable wages capped at 1,701,168 CZK)
21.50%
Pension
2.10%
Sickness
1.20%
Unemployment
9.00%
Health Insurance
33.80% Total Employment Cost
Employee

Employee Payroll Contributions

6.50%
Pension
4.50%
Health Insurance
11% Total Employee Cost
Employee

Employee Income Tax

15.00%
Up to 1,701,168 CZK
23.00%
1,701,168 CZK and above
Employer Taxes
3 HIGHEST
3 LOWEST
Brazil
China
Slovakia
Czech Republic
South Africa
Georgia
Macedonia
82.39%
41.12%
37.2%
33.8%
2%
2%
0%
Employee taxes
3 HIGHEST
3 LOWEST
Romania
Macedonia
Netherlands
Czech Republic
New Zealand
Belarus
Ukraine
45%
28%
27.65%
11%
1.39%
1%
0%

Minimum Wage

General

The monthly minimum wage is 15,200 CZK.

Minimum wage (per month)
$4000
$2663
$2518
$709
$36.80
$17.24
$2.33
Geneva
Luxembourg
Australia
Czech Republic
Angola
Tanzania
Venezuela
3 HIGHEST
3 LOWEST

Payroll

Payroll Cycle

The payroll cycle is monthly and a regular date for payment must be set by the employer.  Salaries must be paid no later than the following calendar month in which the work was performed.

13th Salary

There are no provisions in the law regarding 13th salaries.

Working Hours

General

A full-time work week is 40 hours or 8 hours per day. The length of a shift cannot exceed 12 hours.

Overtime

Overtime work can only be performed as an exception and cannot exceed 150 hours within a calendar year.

If there is an agreement between the employee and employer in regards to work beyond regular hours, overtime cannot exceed 8 hours a week for more than 26 consecutive weeks.  If there is a collective agreement, overtime may be increased.

For managerial positions- the maximum amount of overtime that can be negotiated is 150 hours per year.

Overtime pay is as follows:

  • Overtime pay is 125% of the regular pay.  It is also possible to give additional time off in place of overtime pay.
  • For work over holidays, employees are entitled to their wages plus time off.
  • For work over the weekend, the overtime pay rate is 110% of the regular wages.
  • For nightshift- The shift cannot exceed 8 hours within a 24-hour time period and the pay rate is 110% of the regular wages.

Leave

Paid Time Off

Employees are entitled to 4 weeks (20 days) of paid leave. The employee must perform work for the same employer for at least 60 days without interruption to receive this allotment.

Employees whose right to annual leave has not yet been met, are entitled to leave for the days on which they carried out work in the length of one-twelfth of annual leave for every 21 days on which they carried out work in the relevant calendar year.

Vacation days
Public holidays
3 HIGHEST
3 LOWEST
Spain
Austria
Brazil
Czech Republic
Michigan
China
Federal
30
14
44
30
13
43
30
13
43
20
13
33
2
11
13
5
7
12
10
10
Public Holidays

There are 13 public holidays.

Sick Days

During the first 14 days of illness, the employee is entitled to receive 60% of their regular wages, so long as the employee has fulfilled the conditions to be eligible for this entitlement. From the 15th day onwards, the Czech Social Security Administration assumes responsibility.  

Maternity Leave

In the Czech Republic, a woman is entitled to 28 weeks of maternity leave or 37 weeks for multiple births. The leave can start at least 8 weeks before the expected due date, but no later than 6 weeks.  Maternity leave is compensated at 70% of the regular salary, however, this amount depends on how much the employee has contributed to social security. In addition, at least 14 weeks of maternity leave must be taken.

PAID MATERNITY LEAVE (DAYS)
413
410
365
198
45
30
0
Norway
Bulgaria
Serbia
Czech Republic
United Arab Emirates
Tunisia
Federal
3 HIGHEST
3 LOWEST
Paternity Leave

New fathers receive one continuous workweek within the first 6 weeks of birth. 

Paternity leave applies to all fathers who were employed for at least 3 months before taking paternity leave and for whom sickness insurance was paid. 

Parental Leave

Parental leave begins once maternity leave has ended. This leave can only be taken when the child is being cared for from home. 

Parents are entitled to a maximum allowance of 300,000 CZK until the child reaches the age of 4 or 450,000 CZK for multiple births. This benefit is for a parent who personally, all day and properly cares for the child who is the youngest in the family throughout the calendar month. 

Termination

Termination Process

An employee can be terminated:

  • By a mutual agreement between the employee and employer
  • Notice of termination by either the employee or employer.
    • The notice must be delivered in writing
    • If the employee is resigning, they are not required to give a reason
    • If the employer is terminating the employee, the employee is obligated to list the reason for termination.
    • Notice of termination cannot be given during the protection period (i.e the employee is pregnant or on maternity leave, the employee is unfit for work, etc.)
  • For immediate termination for a reason that is specified under the Labor Code
  • Within a probationary period
  • On an agreed date if the employment contract is for a definite period
  • In the event of death of the employee
Notice Period

The notice period for the employee or employer must be at least 2 months.  It is possible to extend this period if both parties agree on a longer notice period and must be agreed upon in writing.  The notice period commences the first day of the month following the delivery of the notice.

Severance Pay

Depending on how long the employee has been employed, the amount of severance pay to be paid out will vary:

  • 1 year of employment: 1 months’ gross salary
  • 2 years of employment: 2 months’ gross salary
  • 3+ years of employment: 3 months’ gross salary
Probation Period

The probation period is a maximum of 3 consecutive months for regular employees and up to 6 consecutive months for chief officers. The probationary period must be agreed in writing and cannot be longer than half of the agreed period of the employment relationship.

VISA

VISA

Foreigners looking to work in the Czech Republic must apply for a Schengen visa before entering the Czech Republic. Those from the European Union (EU) or European Economic Area (EEA) are not required to obtain a visa. 

Employers can apply for either long-term or short-term Schengen visas. 

  • Short-term: This allows the holders to stay within the area for a max of 90 days. 
  • Long-termFor employees who need to stay in the Czech Republic for more than 90 days needs. 

Those who wish to work in the Czech Republic must acquire an employee card. This is a long-term residence permit that allows Employees to live and work in the Czech territory for longer than 3 months and up to two years.  This card is intended for foreign nationals (not citizens of the EU/EEA Member States and Switzerland) of all types of employment regardless of the level of personal qualifications.

VAT

General

21%

Version History

January 1, 2021
Monthly minimum wage is 15,200 CZK

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