Your Guide to Hiring Employees and
Contractors in Czech Republic
Czech Koruna (CZK)
Ease of doing business
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.
Minimum Wage Requirements
In the Czech Republic, the minimum wage depends on the type of work performed. The lowest wage is CZK 15,200, while the highest minimum wage is CZK 30,400. Valueleaf can help you understand the specific wage requirements for your employees in the Czech Republic.
Individual Income Tax
The individual income tax ranges from 15% to 23%. Income tax is calculated according to progressive rates.
The employer cost is generally estimated at 33.8% of the employee salary.
Social Security – 24.8%
Public Health Insurance – 9.0%
Accident Insurance – 1.2%
Monday to Friday
Overtime Pay & Maximum Hours
- The standard working hours are 8 hours per day, 40 hours per week.
- All overtime hours in excess of 40 hours a week are paid at an overtime compensation rate of 125.00% of the employees’ regular pay rate.
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).
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.
Probationary periods in the Czech Republic are capped at three months. However, this period may be extended to six months for executive officers.