Currency: Czech Crown (CZK)

Capital: Prague

Official language: Czech

Payroll Cycle: Monthly

Paid Time Off

In Czech Republic, employees are entitled to 20 days of paid holiday a year.

Public Holidays

• 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%

Employer Tax

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.

‍Probation Period

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

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.

Sick Leave

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.

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.

Notice Period

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.