Overview

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

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Taxes

Employer
21.50% - Pension
2.30% - Sickness
1.20% - Unemployment
9.00% - Health Insurance
Employee
6.50% - Pension
4.50% - Health Insurance

Minimum Wage

General

The minimum gross monthly wage is 13,350.00 CZK.

Working Hours

General

The work week is capped at 40 hours, anything over is considered overtime.   

Overtime

Overtime pay varies based on the industry, however, in general, overtime is paid at 110% of regular pay. 

VAT

General

21%

Mandatory Benefits

Social Security

In the Czech Republic, Social Security is comprised of Pension (Employer: 21.5%; Employee: 6.5%), Sickness Insurance (Employer:2.30%; Employee: 0.00%), and Unemployment (Employer:1.20%; Employee 0.00%).  The ceiling for contributions is capped at 1,569,522 CZK per year.  

Health Insurance

Health insurance is compulsory in the Czech Republic.  Employers contribute 9.00% of the total gross salary while the employee contributes 4.50%.   There is no cap for the amount contributed to health insurance.  

Payroll

Payroll Frequency

The payroll cycle in the Czech Republic is monthly

Pay Date

Pay date in the Czech Republic is at the end of the following 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 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
Advance Notice

Notice period from 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