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

Czech Republic has established progressive tax rate since 2021. The rate will vary according to the income and can raise up to 23%.

Employer Cost

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

Minimum probation period is 2 months and can raise up to 6 months for managerial positions. Probation period is mandatory.

Minimum Wage Requirements

Minimum wage for 2021 is CZK 15,200. This amount is updated on a yearly basis at the beginning of the year.

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.

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: employees are entitled to 28 weeks of paid leave. Leave must start 4 weeks before the due date and can be extended as parental allowance until the child reaches the age of 3. Maternity leave is reimbursed by Social Insurance and the amount of pay will be 70% of the average salary.
• Paternity Leave: employees are entitled to 7 calendar days of paid leave. Leave must start after the birth of the child. Paternity leave is reimbursed by Social Insurance and the amount of pay will be 70% of the average salary.

Sick Leave

Employees are entitled to up to 380 days of leave. The first 14 days are paid by the employer and after this period it will be paid by the Social Security Administration and the employee will receive 70% of the average reduced on a daily assessment base.

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

Minimum notice period is 2 months and maximum notice period is 6 months for managerial positions. No notice is required in case of termination during a probationary period and the contract can be terminated by both the employer or employee.