Payroll and Benefits Guide Czech Republic

Last updated: May 03, 2023

Czech Koruna (CZK)
Employer Taxes
Payroll Frequency
Employee Costs
Date Format
Fiscal Year
1 January- 31 December



Employer Payroll Contributions


Social Security (covers Pension sickness and unemployment) applied on income above 1,935,552 CZK annually


Health Insurance


Total Employment Cost


Employee Payroll Contributions


Social Security (covers Pension sickness and unemployment) applied on income above 1,935,552 CZK annually


Health Insurance


Total Employee Cost


Employee Income Tax


Up to 1,935,552 CZK


1,935,552 CZK and above

Employer taxes


Employee taxes


Minimum Wage


In the Czech Republic, the national minimum wage is set at 17,300 CZK per month.

Employees whose employment is not covered by a collective agreement are protected from the imposition of too low a salary by a “guaranteed wage.” Work performed is graded according to its complexity, responsibility, and strenuousness into eight individual groups, with a minimum level of guaranteed wage set for each of them. Thus, not only is the minimum wage binding for employers, but it must also be provided at the level of the relevant groups of the lowest level of guaranteed wages.

Work Group Hourly Guaranteed wage 2023 (based on 37.5 hours per week) Monthly Guaranteed wage 2023 Corresponding civil service salary grade
1 CZK 110.70 CZK 17,300 1+2
2 CZK 113.60 CZK 17,900 3+4
3 CZK 125.30 CZK 19,700 5+6
4 CZK 138.50 CZK 21,800 7+8
5 CZK 152.90 CZK 24,100 9+10
6 CZK 168.80 CZK 26,600 11+12
7 CZK 186.40 CZK 29,400 13+14
8 CZK 221.40 CZK 34,600 15+16




Payroll Cycle

The payroll cycle in the Czech Republic is generally monthly, and payments must be made on the same day of each month and no later than the following calendar month of the work performed.

13th Salary

In the Czech Republic, there is no legal requirement to pay a 13th-month salary. However, many employers pay a 13th-month salary bonus, which is typically performance-based.

Working Hours


The standard working week in the Czech Republic consists of 40 hours a week, with a maximum of nine hours per working day.


All work above the standard weekly hours is overtime and regulated by employment contracts/collective agreements. When an employee is requested to work overtime or work on holidays, the maximums are eight additional hours per week or 150 hours a year.
All overtime hours in excess of 40 hours per week are paid at an overtime compensation rate of 125.00% of the employee’s regular pay rate.

Working Week



Paid Time Off

In the Czech Republic, full-time employees’ standard paid leave entitlement is 20 days per year, although some salaried employees are entitled to 25 days of leave, and teachers receive an entitlement of eight weeks. Further entitlement for leave is outlined in the employment contract/collective agreement.
Employees become eligible after 60 days of service with a single employer, and the employer reserves the right to accept or deny any leave requests due to the demands of the business.

Vacation Days
Public Holidays

Public Holidays

There are 13 public holidays. Public holidays that fall on the weekend are usually lost.

Sick Days

Employers in the Czech Republic must reimburse the employees for their first 14 days of sickness at 60.00% of their regular salary rate. Starting from the 15th day, the employees receive sick pay from the government.

In this respect, the employers are obliged to collect sickness certificates from the employees, maintain related records and make all required reporting submissions to the social security authorities.

Maternity Leave

In the Czech Republic, a woman is entitled to 28 weeks of maternity leave (37 weeks for multiple births); the employee must take a minimum of 14 weeks. The leave can start at least eight weeks before the expected due date, but no later than six weeks.

Maternity payment starts alongside the maternity leave, calculated at 70% of the regular salary and paid by the Social Security.  The actual amount is dependent on the employee having worked at least 270 days in the last 24 months, together with the amount of contributions made by the employee to the Social Security.



Paternity Leave

The amendment to the Sickness Insurance Act includes a change for new fathers (or those who have taken into their care a child under the age of seven, thereby replacing parental care), they will now be able to receive the paternal post-natal care benefit for two weeks instead of one.

The paid paternity leave at the rate of 70.00% of the employees’ regular salary. The paternity leave can begin six weeks after the birth of the child providing; they have written consent from the mother of the child stipulating that they will be caring for the child during this period.

Parental Leave

The employer is obliged to provide Parental leave under the Labor Code and begins once maternity leave has ended. Parental leave may be granted, upon request, to a mother or father after the end of maternity leave or upon taking a child into their care and until the child reaches the age of 4 years old.

The Labor Office pays the parental allowance of 300,000 CZK (450,000 for multiple births).

Other Leave

Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, as approved between the employer and employee:

  • Bereavement leave: In the Czech Republic, in the event of the death of an immediate member, an employee is entitled to bereavement leave of up to three days paid leave.
  • Care Leave: Employees are entitled to up to 9 days of care leave if caring for a child under the age of 10 or providing care to a sick family member.
  • Jury Duty: Czech Republic Leave Laws require all employers to provide their full-time, regularly employed employees, job-protected, unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of the requirement.
  • Military Leave: Employees are entitled to leave to take part in compulsory service in armed forces, such as compulsory military service, substitute military service, military exercises, and another service in armed forces, and to take part in civilian service.


Termination Process

The termination process is standard in the Czech Republic, with notice periods required unless an employer can provide sufficient cause for dismissal without notice (due to misconduct, disobedience, lack of skill, neglect of duties, or absence without permission).

Notice Period

In the Czech Republic, the notice period must commence from the first day of the month following the delivery of the notice and must be at least two months. This can be extended upon an agreement between the employer and the employee in writing.

Severance Pay

In Czech Republic, the severance pay is dependent on the employee’s length of service as specified below:

  • 1 year of employment: 1 months’ gross salary
  • 2 years of employment: 2 months’ gross salary
  • 3+ years of employment: 3 months’ gross salary

Probation Period

The Czech Republic’s probationary period depends on the type of role and is stipulated within the employment agreement. In general, probation periods for regular salaried employees are between two and three consecutive months, whereas for chief officers, the probation period can be up to six months.



Business visitors to the Czech Republic typically use a local version of the Schengen C Visa, which foreign nationals must obtain before arrival in the Czech Republic unless they are visa exempt based on their nationality. The Schengen Area limits stay to 90 days within any 180 days, counted cumulatively across the Schengen Area.

The main work authorization category is the Employee Card, a combined work and residence permit for highly skilled local hires. For intracompany transfers, assignments, and secondments​​, it must be combined with a separate work permit. The Employee Card can be issued for up to two years and is renewable.​​



The standard rate of VAT in the Czech Republic is 21.00%.

Stay up to date on payroll & employment law changes

Version History

July 25, 2022
The amendment to the Sickness Insurance Act includes a change for new fathers (or those who have taken into their care a child under the age of seven, thereby replacing parental care), they will now be able to receive the paternal post-natal care benefit for two weeks instead of one.
January 1, 2021
Monthly minimum wage is 15,200 CZK
March 2, 2022
In the Czech Republic, the national minimum wage is now set at 16,200 CZK per month. 
Payroll contributions and personal income tax rates have been updated.

Questions & Answers

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Ross B.
Ross B.
1 year ago

In general, what are the maximum overtime hours i can work in a year?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Ross B.

Hi Ross, Employees shouldn’t work more than 150 hours of overtime per year but can work up to 416 hours per week if agreed upon between the employer and employee.

Bejan Valentin
Bejan Valentin
1 year ago

In general, what is the payment for shifts?

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Bejan Valentin

In general, it depends on the contract between the employer and the employee. Czech Republic workers receive a guaranteed wage based on their occupation.

1 year ago

I am in the last two weeks of the probationary period and I have had an accident that makes it impossible for me to work for the next five weeks. Can the company terminate my contract, even though I am in sick leave?
Thanks in advance.

Erez Greenberg
Erez Greenberg
1 year ago
Reply to  Mica

The employer may not give notice of termination during a ‘protection period’, i.e. where:
· an employee is temporarily unfit for work, or
· an employee is conscripted or released from work to exercise a public office, or
· during pregnancy, maternity, or parental leave,
unless the termination is for organizational reasons due to the closure or relocation of the enterprise. There are several exceptions to this rule. We highly recommend seeking legal advice, as there might be additional factors that should be taken into consideration.

5 months ago

How is a terminated employee’s vacation hourly rate calculated? 

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Payroll and Benefits Guide
in Czech Republic

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Czech Republic 2023
Day Date Holiday Notes
Sunday Jan-1 New year’s Day
Friday Apr-7 Good Friday
Monday Apr-10 Easter Monday
Thursday Jan-5 May Day
Monday May-8 Liberation Day
Wednesday Jul-5 St. Cyril & St Methodius Day
Thursday Jul-6 Jan Hus Day
Thursday Sep-28 Statehood Day
Saturday Oct-28 Independence Day
Friday Nov-17 Freedom and Democracy Day
Sunday Dec-24 Christmas Eve
Monday Dec-25 Christmas Day
Tuesday Dec-26 2nd Christmas Day