Hire employees in Czech Republic No entity needed.
Usually, to hire in Czech Republic, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.
Czech Republic also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Czech Republic quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
All the necessary benefits for Czech Republic built right in
Deel allows you to provide localized benefits for employees in Czech Republic within minutes. All in one manageable online dashboard.
- Health Insurance
- Unemployment Insurance
Currency: Czech Crown (CZK)
Official language: Czech
Payroll Cycle: Monthly
Paid Time Off
In Czech Republic, employees are entitled to 20 days of paid holiday a year.
- New Year’s Day
- Good Friday
- Easter Monday
- Labour Day
- Liberation Day
- Day of Slavonic Apostles Cyril and Methodius
- Anniversary of the Martyrdom of Jan Hus
- St. Wenceslas Day
- Independence Day Czechoslovakia 1918
- Day of the Struggle for Freedom and Democracy
- Christmas Eve
- 1st Christmas Day
- 2nd Christmas Day
Individual Income Tax
The individual income tax depends on many variables, such as marital status, level of income, etc. The average ranges from 15% to 23%
Approximately, 33.8% of employee salary
Employment Contract Details
Employment contracts must be in writing and both the employee and the employer must receive a copy.
There is a maximum probation period of 3 months for general employees and 6 months for managers.
Minimum Wage Requirements
The Minimum Wage is CZK 15,200 per month.
Maximum working hours and overtime
The maximum working time is generally 40 hours per week and 8 hours a day. When work exceeds 40 hours per week, overtime payment is due to the employee.
Bonus and expense payments
There is no statutory requirement. However, it's common practice to provide a bonus paid twice a year.
Parental leave may be granted, upon request, after the end of maternity leave or after childbirth, or upon taking a child into their care, until the child turns 4. The employer is required to provide this leave under the Labor Code, but not after the child reaches the age of 3 years.
- Maternity leave is up to 28 weeks and 37 weeks in the case of multiple births, single motherhood, widows, divorced or those who do not live with a partner. During maternity leave, employees receive an allowance equal to 70% of their usual salary, paid directly by the district social security office.
- Paternity Leave: employees are entitled to paternity leave if their name is stated on the birth certificate. Paternity leave corresponds to 7 days to the care of a new-born child within 6 weeks after childbirth or from the date on which the child was taken into care.
During the first 14 sick-days leave, employers are allowed to check if the employee is following medical instructions. If they do not comply, employers may reduce sick leave or, in case of a gross violation, refuse to pay them at all.
Termination requirements for employees in
The employer can terminate by giving notice in the form of a letter. This must include a justification for the termination as per the requirement under local legislation. Currently there are no rules enabling employers to pay an employee in lieu of notice.
Severance pay is due according to the length of employment and the reason for the termination. The cost for severance starts at 1 month’s average salary for less than 1 year of employment and increases up to 3 months’ average salary if the employment lasts for more than 2 years. Additional compensation may be due if the court deems the dismissal unfair. Employees can appeal to a court if they considered the dismissal unjustified.
As per Czech labour law, the minimum notice period is 2 months, regardless of length of service.No notice is required in case of termination during a probationary period and the contract can be terminated by both the employer or employee.
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“Deel is an amazing platform! It's super intuitive and user friendly, plus it runs suuuuper smoothly!! It has great options for paying and withdrawing money, plus it helps you keep super organized with your spending. They also have great support and are super friendly with all the questions you might have :D I would definitely recommend it!!”
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"This has by far the singular tool that made my contracting work amazing. It used to be that contract management and payouts was a nightmare — Deel makes everything so easy especially with its Transferwise integration. Everyone gets paid on time and kept happy. I also contacted their support a couple of times for some small questions and they’ve been nothing short of amazing. If you’re a contractor or someone who hires contractors then definitely give Deel a go."
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