Remote Logo
English
Remote Logo
English
Pricing
Book Demo
×

Book a demo, see Remote in action


Find out how Remote can guide you through the complexities of managing cross-border hiring, payroll, taxes, and compliance.

Payroll services in Czechia

Czechia has a strong economy with key industries in manufacturing, technology, and finance. With specific labour laws and tax regulations, employers in Czechia must ensure compliance with local payroll requirements, including social security contributions, employment contracts, and tax obligations. Understanding these regulations is essential for smooth payroll operations and legal compliance.

Payroll breakdown in Czechia

Employers in Czechia must adhere to national payroll regulations regarding wages, taxes, and social contributions. Below is an overview of key payroll components:

Minimum wage and working hours

  • Minimum wage: Czechia’s minimum wage is CZK 20,800 per month.
  • Payroll frequency: Salaries are generally paid monthly.
  • Standard working hours: The normal workweek in Czechia is 40 hours, typically spread over five days.
  • Overtime: Employees are entitled to additional pay for overtime work, calculated at 125% of the regular wage for extra hours and 140% for work on public holidays.

Taxation and social security contributions

  • Personal income tax : Czechia has a flat income tax rate of 15% on most earnings, with a higher rate of 23% for income exceeding a certain threshold.
  • Employer contributions:
    • Social security: 24.8% of the gross pay.
    • Health insurance: 9% of the gross pay.
  • Employee contributions:
    • Social security: 6.5% of the gross pay.
    • Health insurance: 4.5% of the gross pay.
  • Corporate tax: The corporate income tax rate in Czechia is 19%.
  • Tax reporting: Employers must file payroll taxes and contributions with the Czech Tax Administration regularly.

Payroll compliance in Czechia

  • Employment contracts must be provided in writing and specify terms such as pay, working hours, and job responsibilities.
  • Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
  • Employers must stay updated on changes to Czechia’s labour laws and tax regulations to avoid penalties.

Quick facts: Important considerations for employers

  • Payroll frequency: Salaries are generally paid monthly.
  • Currency: Payroll in Czechia is processed in Czech Koruna (CZK).
  • Tax reporting: Employers must file payroll taxes and contributions with the Czech Tax Administration.
  • Payroll deductions: Employers must ensure accurate deductions for social security and income tax.
  • Payroll compliance: Employers must stay updated on changes to tax rates and reporting requirements.

Run payroll in Czechia with Remote

Managing payroll in Czechia requires careful attention to tax regulations, employment laws, and social security requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be with Remote, book a demo today.