
Payroll and Benefits Guide Czech Republic
Last updated: May 03, 2023
Contributions
Employer
Employer Payroll Contributions
33.80% | Total Employment Cost |
24.80% |
Social Security / Pension (gross income exceeding the annual maximum 1,935,552 CZK) |
2.10% | Sickness |
1.20% | Unemployment |
9.00% | Health Insurance |
Employee
Employee Payroll Contributions
11.00% | Total Employee Cost |
6.50% |
Social Security/Pension (gross income exceeding the annual maximum 1,935,552 CZK) |
4.50% | Health Insurance |
Employee
Employee Income Tax
Up to 1,935,552 CZK |
Up to 1,867,728 CZK |
1,935,552 CZK and above |
1,867,728 CZK and above |
Employer taxes
Employee taxes
Minimum Wage
General
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 |
MINIMUM WAGE (PER MONTH)
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, with a maximum of nine hours per working day.
Overtime
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
Monday-Friday
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.
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.
PAID MATERNITY LEAVE (DAYS)
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
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%.
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Questions & Answers

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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...
Public Holidays Calendar
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 |
In general, what are the maximum overtime hours i can work in a year?
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.
In general, what is the payment for shifts?
In general, it depends on the contract between the employer and the employee. Czech Republic workers receive a guaranteed wage based on their occupation.
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.
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.
How is a terminated employee’s vacation hourly rate calculated?
Vacation time is calculated in terms of hours (full time working week is 40 hours = 4 weeks vacation) and paid at average salary of the previous quarter. Anyone who has worked less than 52 weeks will receive a pro rated calculation.