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    Czech Republic 2022
    Day Date Holiday Notes
    Saturday Jan-1 New Year's Day
    Friday Apr-15 Good Friday
    Monday Apr-18 Easter Monday
    Sunday May-1 May Day
    Sunday May-8 Liberation Day
    Tuesday Jul-5 St. Cyril and St. Methodius Day
    Wednesday Jul-6 Jan Hus Day
    Wednesday Sep-28 Statehood Day
    Friday Oct-28 Independence Day
    Thursday Nov-17 Freedom and Democracy Day
    Saturday Dec-24 Christmas Eve
    Sunday Dec-25 Christmas Day
    Monday Dec-26 Second Day of Christmas
    Countrypedia

    Czech Republic
    Payroll and Benefits Guide

    Last updated: Mar 02, 2022
    Currency
    Czech Koruna (CZK)
    Payroll Frequency
    Monthly
    Employer Taxes
    33.80%

    Papaya Offers Complete Payroll, PEO and Contractor Management Services For Czech Republic

    Download PDF Version

    Overview

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

    COVID-19

    Due to COVID-19, foreign workers who hold a “blue card” are able to change employers within 6 months of initial employment. The new employer is required to submit notice to the Minister of Interior on the first day of employment. There is no clear expiration date for this rule change to expire.

    Contributions

    Employer

    Employer Payroll Contributions

    24.80%
    Social Security / Pension (gross income exceeding the annual maximum 1,867,728 CZK)
    2.10%
    Sickness
    1.20%
    Unemployment
    9.00%
    Health Insurance
    33.80% Total Employment Cost

    Employee

    Employee Payroll Contributions

    6.50%
    Social Security / Pension (gross income exceeding the annual maximum 1,867,728 CZK)
    4.50%
    Health Insurance
    11.00% Total Employee Cost

    Employee

    Employee Income Tax

    15.00%
    Up to 1,867,728 CZK
    23.00%
    1,867,728 CZK and above
    Employer Taxes
    3 HIGHEST
    3 LOWEST
    Mexico
    Russia
    South Korea
    Czech Republic
    Georgia
    Lithuania
    Macedonia
    43.72%
    38.5%
    34.84%
    33.8%
    2%
    1.77%
    0%
    Employee taxes
    3 HIGHEST
    3 LOWEST
    Romania
    Germany
    Netherlands
    Czech Republic
    Belarus
    Ukraine
    Cambodia
    35%
    31.05%
    30.35%
    11%
    1%
    0.6%
    0%

    Minimum Wage

    General

    In the Czech Republic, the national minimum wage is set at 16,200 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 being set for each of them. Thus, not only is the minimum wage binding on employers, it must be provided at least at the level of the relevant groups of the lowest level of guaranteed wages.  

    Minimum wage (per month)
    $4000
    $2663
    $2518
    $709
    $36.80
    $17.24
    $2.33
    Geneva
    Luxembourg
    Australia
    Czech Republic
    Angola
    Tanzania
    Venezuela
    3 HIGHEST
    3 LOWEST

    Payroll

    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

    General

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

    Overtime

    All work above the standard weekly hours is overtime and regulated by employment contract/collective agreements. When an employee is requested to work overtime or work on holidays, the maximums are eight additional hours a week or 150 hours a year.

    All overtime hours in excess of 40 hours a week are paid at an overtime compensation rate of 125.00% of the employees’ regular pay rate.

    Leave

    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
    3 HIGHEST
    3 LOWEST
    Azerbaijan
    Brazil
    Kazakhstan
    Czech Republic
    Mexico
    Malaysia
    Federal
    21
    24
    45
    30
    13
    43
    24
    19
    43
    20
    13
    33
    6
    8
    14
    8
    6
    14
    10
    10

    Public Holidays

    There are 13 public holidays.

    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.

    PAID MATERNITY LEAVE (DAYS)
    413
    410
    365
    198
    40
    30
    0
    Norway
    Bulgaria
    Serbia
    Czech Republic
    Malawi
    Tunisia
    Federal
    3 HIGHEST
    3 LOWEST

    Paternity Leave

    Fathers are entitled to one week of 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

    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.

    VISA

    VISA

    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.​​

    VAT

    General

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

    Version History

    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.
    January 1, 2021
    Monthly minimum wage is 15,200 CZK

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      Questions & Answers

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      Ross B.
      Ross B.
      7 months ago

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

      Erez Greenberg
      Admin
      7 months 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
      2 months ago

      In general, what is the payment for shifts?

      Erez Greenberg
      Admin
      2 months 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.

      Mica
      Mica
      1 month ago

      Hi!
      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
      Admin
      1 month 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.

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