Overview

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

calendar icon Public holidays calendar

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.

Payroll

Payroll Cycle

Pay date in the Czech Republic is at the end of the following month. 

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. 

Payroll Contributions

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.  

Leave

Maternity Leave

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. 

Paternity Leave

New fathers are able to take leave in lieu of the mother after the first 7 weeks from birth. 

Parental Leave

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.   

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
Notice Period

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

VAT

General

21%