2.30% - Sickness
1.20% - Unemployment
9.00% - Health Insurance
4.50% - Health Insurance
The minimum gross monthly wage is 13,350.00 CZK.
Paid Time Off
20 days, however, if there is a collective agreement in place, it is common that the amount of paid leave is 25 days.
Employees received 14 days of sick leave paid at 100% for the first 3 days and 60% or regular pay for the remainder of the sick leave. In addition, an employee who intentionally causes their inability to work is not eligible to exercise sick leave benefits.
In the Czech Republic, a woman is entitled to 28 weeks of maternity leave or 37 weeks for multiple births. Maternity leave is compensated at 70% of the regular salary, however, this amount depends on how much the employee has contributed to social security.
New fathers are able to take leave in lieu of the mother after the first 7 weeks from birth.
If an employee needs to take care of a sick member of their household or if they need to care for a child under the age of 10 if the child’s school is closed, it is possible to use sick leave days.
An employee is able to take unpaid leave so long as it is approved by the employer.
The work week is capped at 40 hours, anything over is considered overtime.
Overtime pay varies based on the industry, however, in general, overtime is paid at 110% of regular pay.
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 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.
The payroll cycle in the Czech Republic is monthly
Pay date in the Czech Republic is at the end of the following month.
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
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.
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