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How to hire and pay employees in Czechia
Slasify
Jun 21, 2025
Before Hiring in Czechia
Discover the global hiring and employment landscape in Czechia—a hub of innovation with a strong industrial tradition. Its strategic location in Europe and a skilled workforce specializing in engineering, IT, and manufacturing make it an ideal setting for companies planning to expand their European footprint.
Explore the employment essentials including payroll, personal income tax, statutory contributions, annual leaves, minimum wage, terminations, visa requirements, and more. Gain valuable compliance insights for a smooth entry into the dynamic Czechia market with Slasify's global premium HR platform.
At a Glance
| Capital | Prague |
| Currency | Czech Koruna (CZK) |
| Payroll Cycle | Monthly |
| Minimum Wage | CZK 18,900 per month |
| Annual Leave | 4 weeks |
| Personal Income Tax | 15%–23% |
Personal Income Tax
| Taxable Income (CZK) | Progressive Tax Rate (%) |
|---|---|
| Up to 1,582,812 | 15 |
| Over 1,582,812 | 23 |
Local Taxes
There are no local taxes on employment income in Czechia.
Statutory Contributions
The contributions made by both the employer and employee for Sickness Insurance, Pension Insurance and State Employment Policy must be calculated based on the applicable assessment base, which has an annual cap of CZK 2,110,416.
Employer Contributions
| Contribution Rate | |
|---|---|
| Sickness Insurance, Pension Insurance and State Employment Policy | 24.8% |
| General Health Insurance | 9% |
Employee Contributions
| Contribution Rate | |
|---|---|
| Sickness Insurance, Pension Insurance | 7.1% |
| General Health Insurance | 4.5% |
Payment of Wages
Wages will become payable to the employee after the work has been performed, at the latest in the calendar month following the month in which the employee became entitled to said wages.
Minimum Wage
Effective January 1, 2024, the minimum wage in Czechia is set at CZK 18,900 per month or CZK 112.50 per hour.
Statutory Bonus
There are no statutory bonuses in Czechia.
Termination
Both employer and employee may mutually agree to terminate their employment relationship, the agreement of which must be in writing and made in copies for each party.
In the event of a unilateral termination by either party, a written notice must be given to the other party and it must be done for valid reasons.
| Valid reasons for dismissals | Valid reasons for resignations |
|---|---|
| If the employer or part of it is dissolved or relocates | Employees may resign for any reason or without giving a reason as long as they observe the required notice period. |
| If the employee becomes redundant | |
| If the employee may no longer carry out their work due to a certified occupational accident, disease or risk of disease | |
| If the employee, due to their health condition, have lost their medical capacity for a long time | |
| If the employee does not meet the prerequisites established by legal regulations for the performance of the agreed work or incompetence, provided that they have been given the opportunity to improve | |
| If the employee violates their duties as specified in Section 301a of the Labor Code in a particularly gross manner |
Note: When dismissing an employee, it is important for employers to observe the applicable statute of limitations.
Notice Period
The duration of notice period given by the terminating party must at least be 2 months, with the notice period being the same for both the employer and the employee. In any case, notice period begins on the first day of the calendar month following the delivery of the notice and ends on the last day of the relevant calendar month, barring certain exceptions.
Employers can only dismiss their employees without notice if it is justified, i.e. for a serious breach of duty or persistent less serious violations, provided that they have been given prior warnings against their misconduct.
| Reasons justifying summary dismissals | Reasons justifying summary resignations |
|---|---|
| If the employee has been legally sentenced for an intentional criminal offense to an unconditional prison sentence for a period of more than a year | If the employer has not paid wages or any part thereof within 15 days after they are due |
| If the employee has been legally sentenced to an unconditional prison sentence for an intentional criminal offense committed during the performance of work tasks or in direct connection with it for a period of at least 6 months | If the employee cannot continue to work without serious risk to their health and the employer has not allowed them to perform other suitable work within 15 days of having the medical opinion issued |
| If the employee has violated the obligation resulting from the legal regulations relating to the work performed in a particularly gross manner |
Note: Employees who rightfully resign without notice shall be entitled to receive compensation in lieu of the notice period not served.
Severance Pay
Employees are entitled to receive severance, the amount of which may vary depending on the reason for their termination, as follows:
| Reason for termination | Severance pay |
|---|---|
| Dismissed when the employer are dissolved or have relocated, or when the employee has become redundant | 1–3 times the employee's average monthly earnings depending on their length of service |
| Dismissed when the employee can no longer carry out their work due to an occupational accident, disease or risk of this disease | 12 times the employee's average monthly earnings |
Probationary Period
A probationary period may be agreed to, provided that the agreement is made in writing and their duration do not exceed the following maximums:
| Maximum duration of probation | |
|---|---|
| Regular employees | 3 consecutive months |
| Senior employees | 6 consecutive months |
The agreed probationary period may not be additionally extended. However, the it will be extended by the duration of all-day obstacles at work for which the employee does not work, and by the period of a full-day vacation.
For fixed-term employees, the probationary period may not be longer than half of the agreed duration of the employment relationship.
Either party may terminate the employment relationship in writing during probation for any reason or without stating a reason, and without observing any notice period. However, employers shall not dismiss an employee during the first 14 calendar days of the employee's temporary incapacity for work.
Note: A probationary period can also be negotiated in connection with an appointment to a managerial position.
Work Time Rules
Standard Working Hours
Standard working hours are generally set at 40 hours per week for regular employees, with less hours being set for those classified in certain categories.
| Employee category | Standard weekly hours |
|---|---|
| Underground workers and those working in mine constructions and workplaces | 37.5 hours |
| Employees with a multi-shift or continuous working regime | 37.5 hours |
| Employees with a two-shift working regime | 38.75 hours |
Working hours are usually divided into a 5-day working week and the length of a shift must not exceed 12 hours. These hours can either be evenly distributed or unevenly distributed.
| Even schedule of working hours | Uneven schedule of working hours |
|---|---|
| The scheduled weekly working hours are evenly allocated by the employer to individual weeks. |
The scheduled weekly working hours are unevenly allocated by the employer to individual weeks and the average weekly working hours for a period of no more than 26 consecutive weeks may not exceed the scheduled weekly working hours. Only a collective agreement may extend this period to a maximum of 52 consecutive weeks. |
Break Period
Employers are obligated to provide a break period of at least 30 minutes for rest and meal to their employees after 6 hours of continuous work. This period shall not be provided at the beginning and end of the working hours, and shall not be counted as part of the employee's working hours.
Employees performing work that cannot be interrupted must still be provided with adequate time for rest and meal even without the interruption of operations or work. In such cases, the break time shall be included in the employees' working time.
In addition to the regular break period, breastfeeding employees shall be granted the following paid special break:
| Child's age | Special break |
|---|---|
| Up to 1 year old | 2 30-minute breaks per child |
| 1 year old–1 year and 3 months old | 1 30 minute break per child |
An employee working shorter working hours than the specified weekly working hours, but at least half of the weekly working time, is only entitled to a single 30-minute break per child until they reach 1 year of age.
Overtime
Overtime refers to the work performed in excess of the scheduled weekly working hours, and this is only allowed for serious operational reasons.
Mandated overtime work for an employee may not exceed 8 hours per weeks and 150 hours per calendar year. In any case, overtime hours shall not exceed an average of 8 hours per week over a period of up to 26 consecutive weeks. The limit of this averaging period may be increased by collective agreement to up to 52 consecutive weeks.
Employees who work overtime must be paid an overtime premium equivalent to 25% of their average earnings or, if the employee and employer agree, be compensated with compensatory time off within 3 calendar months after the overtime work.
Weekly Rest Days
Employees are entitled to 11 consecutive hours of rest in between work days and a continuous rest period of at least 35 hours per week.
If the employer's operations allow it, a continuous rest period during the week is established for all employees on the same day and in such a way that it falls on a Sunday.
In the event that the employee has a shortened daily rest period or if they work on technological processes that cannot be interrupted, their continuous weekly rest can be reduced down to 24 hours, provided that they are still granted a total rest duration of 70 hours in a 2-week period.
The employer may order work on non-working days only in exceptional cases, and employees required to work on their rest days are entitled to be paid at least a 10% premium on their average earnings.
Holiday and Leave Entitlements
Public Holidays
Employees who do not work because a public holiday falls on their usual working day shall still be paid their average earnings for that holiday. There are 13 days of public holiday in Czechia for 2024.
| Holiday | Date |
|---|---|
| New Year's Day, Day of the Restoration of the Independent Czech State | January 1 |
| Good Friday | March 29 |
| Easter Monday | April 1 |
| Labor Day | May 1 |
| Victory Day | May 8 |
| Cyril and Methodius' Day of the Slavic Evangelists | July 5 |
| Master Jan Hus Burning Day | July 6 |
| Czech Statehood Day | September 28 |
| Independence Day | October 28 |
| Struggle for Freedom and Democracy Day | November 17 |
| Christmas Holidays | December 24–26 |
Employers may only order their employees to perform work on public holidays under certain exceptional circumstances. Those required to work on public holidays must be given compensatory time off within 3 months of their performance of holiday work or, if the employee and employer agree, be paid an equivalent premium at their average earnings.
Annual Leave
Employees shall be entitled to 4 weeks of paid annual leave for every continuous year of service. Those who have not completed a year of service, but have worked for at least 4 weeks, are entitled to have their annual leave prorated in accordance with the provisions under Section 213 of the Labor Code.
Annual leave must generally be taken in its entirety within the year after which it is accrued, though employees can make a written request to carry over their leave to the following year if they are prevented from taking them by obstacles to their work or urgent operational reasons.
Note: The establishment of leave periods and the carrying over of leave must be done in accordance with the regulations and limitations established under Sections 217–219 of the Labor Code.
Sick Leave
Employees are entitled to paid sick leave from their employers for their first 2 weeks of their sickness or quarantine at 60% of their average earnings. These employees must generally meet the conditions for entitlement to sick leave according to the regulations on sickness insurance.
Sick leave pay must be given on the employee's regular pay day after the employee has presented the relevant documents justifying their leave.
Employees whose sickness lasts more than 14 calendar days may apply for sickness benefits from the relevant authorities to supplement loss of wages during the period.
Note: A detailed breakdown on the calculation for sick leave pay, including limits, reductions and forfeiture, can be accessed here.
Maternity Leave
Employees are entitled to 28 weeks of maternity leave, which is extendable to 37 weeks in the event of multiple births. This leave is usually taken from 6 weeks before the expected date of delivery, but can be taken from no earlier than 8 weeks before the expected date of delivery.
Maternity leave related to childbirth shall not be shorter than 14 weeks and shall not end or be suspended before the expiry of 6 weeks from the date of childbirth.
Employees who take less than 6 weeks of pre-natal leave shall have their maternity leave adjusted as follows:
| Reason for taking less than 6 weeks' pre-natal leave | Maternity leave entitlement |
|---|---|
| Give birth earlier than expected | Entitled to the full 28 weeks of maternity leave, calculated from their first day of leave. |
| Other reasons | Entitled to 22 weeks of post-natal leave, or 31 weeks in the event of multiple births. |
In the event of stillbirth, the employee shall be entitled to 14 weeks of maternity leave, while maternity leave in the event of exceptional situations, e.g. child's hospitalization or death, must be taken in accordance with the provisions under Section 198 of the Labor Code.
Employees taking maternity leave may apply for maternity benefits from the relevant authorities to supplement loss of wages during the period.
Paternity Leave
Employees are entitled to 14 days of paternity leave, which can be taken within 6 weeks of the child's birth or placement.
Paternity leave in the event of exceptional cases, e.g. child's hospitalization or death, must be taken in accordance with the provisions under Section 198 of the Labor Code.
Employees taking paternity leave may apply for paternity benefits from the relevant authorities to supplement loss of wages during the period.
Parental Leave
Employees can make a written request to take parental leave, which can be taken from after the end of maternity leave for mothers and from the child's birth for fathers up until the child turns 3 years old. Requests for parental leave must be made at least 30 days in advance unless this is prevented by a serious reason.
Parental leave in the event of exceptional cases, e.g. child's hospitalization or death, must be taken in accordance with the provisions under Section 198 of the Labor Code.
Employees taking parental leave may apply for parental benefits from the relevant authorities to supplement loss of wages during the period.
Other Leave
In addition to the above leaves, employers shall excuse their employees' absence when they are required to do the following:
| Justification for leave | Relevant regulations |
|---|---|
| Taking care of a child under 10 years old or other natural persons | Sections 39–41 of the Sickness Insurance Act |
| Providing long-term care to a person who needs it | Sections 41a–41f of the Sickness Insurance Act |
| Tending to personal obstacles to work | Section 199 of the Labor Code |
| Performing public functions, civic duties and other actions in the general interest | Sections 200–203a of the Labor Code |
| Performing military service | Section 204 of the Labor Code |
| Participating in in required training or other forms of preparatory studies | Section 205 of the Labor Code |
| Reduction or the forgoing of the employee's working capacity due to obstacles on the employer's side | 207–210 of the Labor Code |
The permissible duration of absence in each case and whether the period of absence is paid by the employer, unpaid or covered by the relevant insurance scheme shall be as stipulated under the respective regulations linked above.
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