Capital City
Prague
Currency
Czech Koruna
(
Kč
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
33.80%
Languages
Czech
Capital City
Prague
Currency
Czech Koruna
(
Kč
)
Timezone
GMT +1
Payroll Frequency
monthly
Tax Year
1 January - 31 December
Employer Tax
33.80%
Languages
Czech
The Czech Republic boasts a well-educated and skilled workforce, particularly in engineering, technology, and manufacturing.
Situated in the heart of Europe, the Czech Republic provides easy access to neighboring European markets, making it strategically located for businesses with regional or international operations.
The Czech Republic has a reputation for being business-friendly with a stable economic and political environment, making it conducive to long-term investments.
The Czech Republic stands out as one of the world's leading producers of exceptional developers. Its robust talent pool is consistently invigorated by the annual addition of over 8,000 IT graduates, ensuring a continuous supply of highly skilled professionals.
Businesses can only operate smoothly in The Czech Republic if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in The Czech Republic below, to avoid any compliance issues.
The legal structure in the Czech Republic requires both employers and employees to enter into a written employment agreement when hiring. This agreement must, at a minimum, encompass the following fundamental details:
We can help you get a new employee started in The Czech Republic quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
It is also worth noting that pre-employment medical checks are required before an employee starts, but remote employees are generally exempt unless their role involves specific health risks.
The Czech Republic adheres to a standard workweek of 40 hours, which translates to eight hours per day.
Overtime work is permissible but subject to restrictions, allowing a maximum of eight hours per week and 150 hours per year. For each overtime hour worked, employees must be compensated with an additional 25% of their standard hourly wage.
Probation periods in the Czech Republic are set at three months for non-managerial employees and six months for managerial employees. It's important to note that these probationary periods are fixed and cannot be extended beyond the initially stipulated duration
Employment laws in The Czech Republic can be intricate, and even unintentional mistakes in contracts, benefits, or termination processes can carry legal and reputational consequences. With an Employer of Record, you gain a local partner that ensures every hire is compliant. The EOR takes care of drafting compliant contracts, processing accurate payroll, managing contributions to statutory benefits, and handling lawful terminations if needed, all according to local employment standards.
This level of protection is especially valuable when expanding into new or unfamiliar regions. Instead of using time and resources to build in-house legal knowledge, you gain immediate access to local expertise. The EOR keeps you ahead of regulatory updates and shields your company from potential compliance gaps, so you can confidently hire and manage employees while minimizing risk. For hiring managers and founders, it's the difference between hiring with uncertainty and building your team on a legally sound foundation.
With decades of experience in global compliance and deep local knowledge, we ensure smooth adherence to local laws and regulations across borders.
Unmatched coverage for employment across 180 countries.
An employee portal paired with dedicated, human support.
Reliable, cost-effective services with no annual commitments.
1 January - 31 December is the 12-month accounting period that businesses in The Czech Republic use for financial and tax reporting purposes.
The payroll cycle in The Czech Republic is usually monthly, with employees being paid on the same day of each month as stipulated in contract.
As of January 1, 2025, the Czech Republic's minimum wage rates are as follows:
The Czech Republic's minimum wage is determined using a formula based on the average monthly gross earnings across the national economy. For 2025, the government applied a coefficient of 42.2% to the predicted average wage of CZK 49,233, resulting in the minimum wage of CZK 20,800 per month. This approach aims to align the minimum wage with the overall economic development and average wage trends.
In the Czech Republic, there is no legal obligation to provide a 13th-month salary. Nonetheless, numerous employers choose to offer a 13th-month salary bonus, often tied to performance metrics.
Employer payroll contributions are generally estimated at an additional 33.8% on top of the employee salary in The Czech Republic.
In The Czech Republic , the typical estimation for employee payroll contributions cost is around 11%.
Czech employees are subject to an individual income tax, calculated at 15% of their gross salary up to 141,764 CZK and 23% for the portion of the gross salary exceeding this threshold.
Participation in pension insurance (důchodové pojištění) is mandatory in the Czech Republic.
When you’re scaling quickly, setting up local payroll systems in each new country slows you down. In The Czech Republic, the administrative load can include government registration, benefits management, and accurate, on-time payment delivery. An EOR gives you a plug-and-play solution that handles all of this while your internal team stays focused on growth, not red tape.
Key Ways an EOR Supports Payroll in The Czech Republic:
In the Czech Republic, work permits and visas are essential for employers hiring non-EU/EEA/Swiss nationals. The main permits include the Employee Card for long-term employment, the Blue Card for highly skilled professionals, and the Intra-Company Transferee Card for employees moving within multinational companies. The process requires submitting essential documents like a valid passport, an employment contract, and proof of qualifications. Employers are responsible for sponsoring these applications and ensuring compliance with local labor laws. Processing times typically range from 30 to 60 days, making it important to plan well in advance for a smooth hiring process.
The annual leave entitlement in The Czech Republic is 20 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
There are 13 national holidays in the Czech Republic:
Employees in the private sector are entitled to a minimum of four weeks of paid annual leave each year.
In the Czech Republic, employed women with at least 12 consecutive months of work before childbirth can access up to 28 weeks (seven months) of paid maternity leave. Additional details include:
Fathers are eligible for 14 days of paid paternity leave within the first 6 weeks after the birth of their child. Paternity leave is compensated by the state at 70% of the father's regular salary, up to a maximum contribution of 8,575 CZK.
In the Czech Republic, employees are eligible for sickness benefits for up to a maximum of 380 calendar days., with the following applicable details:
Parental leave can be taken by parents until their child turns 3 years old.
Employees are eligible for up to nine days of paid care leave to attend to a sick family member or provide care for a child under 10. Social Security reimburses this leave at 60% of the employee's gross salary for up to nine days.
Employees receive two days of leave for their wedding, one of which is compensated.
In the event of the death of an immediate family member, an employee can take up to three days of paid bereavement leave.
Employers are mandated to provide full-time employees with unpaid leave to fulfill their responsibilities as jurors, witnesses, plaintiffs, or defendants in court proceedings.
For startups and small teams, managing global employee benefits isn’t just complex, it’s a full-time job. In The Czech Republic, understanding what benefits are required, how to deliver them, and how to stay compliant can be overwhelming, especially without local HR expertise. An Employer of Record removes that pressure by taking complete ownership of benefits administration, so you don't have to become an expert in local employment law.
Whether it’s healthcare contributions, pension enrollment, or statutory leave, the EOR ensures everything is delivered accurately and on time. They navigate any country-specific nuances, keep up with legal changes, and ensure each benefit is properly tracked and documented. For founders, that means fewer distractions and more time to focus on growth. Your employees get the security and support they expect from a local employer, and you get to scale your team in The Czech Republic without building complex infrastructure or worrying about compliance missteps.
In Czech Republic, termination must be put in writing if the employer initiates the termination with the minimum notice period. In the case of indefinite-term contracts, the employer must provide a clear explanation for ending the employment. Employment may only be terminated for one of the following reasons:
In the Czech Republic, the notice period for both dismissals and resignations must be at least two months.
Severance pay is dependent on the employees length of service as specified below, and is only applicable in instances where contracts are terminated due to redundancy:
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
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FAQS
Standard employment terms in the Czech Republic include working hours, leave entitlements, and conditions outlined in employment contracts, governed by labor laws and regulations.
Czech payroll includes gross salary, social security contributions, and income tax deductions. Employers must also contribute to social security and other mandatory funds.
As of January 1, 2025, the Czech Republic's minimum wage rates are as follows:
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