and contractors in Czech Republic
Remote’s guide to employing in Czech Republic.
Facts & stats
The Czech Republic, or Czechia, is located in central Europe and is a member of the European Union. The country is famous for its more than 2,000 castles, especially Prague Castle. The Czech Republic has a very large expat community, thanks in part to its reputation as one of the safest countries in in the world and its high standard of living.
Grow your team in Czech Republic with Remote
To employ workers in the Czech Republic, companies must use a legal entity to manage payroll, benefits, taxes, and compliance using in-country resources. Through Remote’s legal entity in the Czech Republic, we can help you employ your team. Our global employment and global payroll solutions make it easy for employers around the world to employ workers in the Czech Republic legally and easily.
The Czech Republic, like many other countries, treats self-employed contractors and full-time employees differently. Misclassification of contractors in the Czech Republic may lead to fines and penalties for the offending company.
Employing in Czech Republic
Employment law in the Czech Republic comes from a mix of historical practices, international agreements, and modern legislation. Contracts of employment in the Czech Republic can be for definite or indefinite periods, with definite contracts typically limited in years and number of renewals.
To employ workers in the Czech Republic, contact Remote to learn more about your options.
|Date||Holiday Name||Extra information|
|New Year's Day|
|Liberation Day or Victory Day|
|Saints Cyril and Methodius Day|
|Jan Hus Day|
|Czech Statehood Day|
|Czech Independence Day|
|Struggle for Freedom and Democracy Day|
|St. Stephen's Day|
In the Czech Republic, the minimum wage depends on the type of work performed. The lowest wage is CZK 15,200, while the highest minimum wage is CZK 30,400. Remote can help you understand the specific wage requirements for your employees in the Czech Republic.
Salaries must be paid on a monthly basis on a consistent date set by the employer.
We can help you get a new employee started in Czech Republic fast. The minimum onboarding time we need is only 72 hours.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
Competitive benefits package in Czech Republic
Beyond providing your employees with all statutory benefits in Czech Republic, Remote can help you create a custom benefits package for your international team. A competitive benefits package may include perks such as:
Taxes in Czech Republic
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Czech Republic.
- 24.8% - Social Security (Max of 1,701,168 CZK/year)
- 9% - Health Insurance
- 33.8% - Total Cost of Employment
Employee payroll taxes
- 6.5% - Social Security
- 4.5% - Health Insurance
Employee income tax
- New in 2021:
- 15% (Gross income up to 1,701,168 CZK)
- 23% (Gross income above 1,701,168 CZK)
Types of leave
Employees in the Czech Republic are entitled to four weeks of paid leave each year in addition to 13 paid public holidays. Employers commonly offer five weeks of PTO to keep their benefits packages competitive. When a holiday falls on a Saturday or Sunday, employers in the Czech Republic are not required to provide employees with paid time off during the week.
- Pregnancy and
Maternity leave in the Czech Republic covers 70% of the mother’s average gross salary for up to 28 weeks, beginning six to eight weeks prior to the due date. Maternity leave may extend to 37 weeks for mothers who give birth to multiple children at once. Maternity leave cannot be shorter than 14 weeks and must extend to at least six weeks following birth.
Payments for maternity and paternity leave in the Czech Republic come out of government social security funding.
Paternity leave in the Czech Republic covers 70% of the father’s average gross salary for up to seven days. Paternity leave must be used within the first six weeks of childbirth as a single block.
Parents in the Czech Republic are also eligible to take parental leave until the child’s reaches three years of age. Parents may draw up to 300,000 CZK total as a parental allowance during this time period, or 450,000 CZK in the case of multiple births. Parental leave is available to people who are registered as partners with the Czech government.
Adopting couples receive the same benefits.
In the Czech Republic, employers must provide written notice with a stated reason to terminate an employee. Employees who quit on their own are not required to provide reasoning for the decision.
Employers in the Czech Republic must provide at least two months’ notice to terminate an employee. The notice period does not officially begin until the first day of the next month: so, an employee served with notice of termination on March 15 would not be fully terminated until June 1.
Severance pay in the Czech Republic depends on the amount of time the employee has worked for the company. Employees who have worked less than one year for an employer are not entitled to severance pay.
- After one year of employment, terminated employees are entitled to one month’s salary.
- For two years of employment, terminated employees are entitled to two months’ salary.
- After three years of employment, terminated employees are entitled to three months’ salary.
Probationary periods in the Czech Republic are capped at three months. However, this period may be extended to six months for executive officers.