Understanding Employment Norms in Czech Republic: A Comprehensive Guide
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Hiring in Czech Republic? Read on to find out the employment norms (like taxes, payroll and benefits) and EOR (Employer on Record) norms in Czech Republic.

Employment Norms in Czech Republic

The Czech Republic is a central European country. The International Labor Organization (ILO) is responsible for regulating labor laws in the Czech Republic. The Czech labor code regulates the terms and conditions of employment. Working conditions, leaves, minimum wages, and other facilities are covered under labor laws. There are some individual acts regarding personal data, insurance, state holidays, etc. These decrees work in addition to the designated labor laws.

General Information:

  • The Czech Republic's currency is Czech Koruna, CZK.
  • Prague is the capital of the Czech Republic.
  • Czech is the official language of the Czech Republic. Documentation can be in the Czech language or English. English is used as the second language here.
  • As of 2022, the GDP of the Czech Republic was reported to be $433 billion.
ILO regulates the labor laws here. An employee is entitled to get holidays, leaves, minimum wages, and other privileges.
Czech Republic map

Table of Contents

  • Agreements
  • Onboarding Process
  • Visa
  • Minimum Wage
  • Payroll Cycle
  • Annual Bonus
  • Health Benefits
  • Working Hours and Overtime
  • Leaves
  • Social Security
  • Taxes for Employers
  • Taxes for Employees
  • Probation
  • Termination
  • Severance Pay
  • Employees or Contractors
  • Final Words


There are mainly two types of labor contracts valid in the Czech Republic.
  • Indefinite or open-ended employment contract- When the employee and employer do not have an end date for the contract, it is called an indefinite contract. This type of contract can be terminated by mutual agreement. An employee can terminate the contract for any reason. The employer has to state a valid reason for the termination of the contract.
  • Fixed-term employment contract- A contract that has an end date is called a fixed-term employment contract. This type of contract lapses on its fixed date. A fixed-term contract is usually for up to 3 years. It can be renewed only twice for three years term each. The contract is broken if the employer and employee can not renew the contract before 3 years.
  • Executive service agreement- This type of agreement excludes the working obligations of a regular employee. Under this agreement executives form an executive service agreement.
There isn't any specific provision to use only Czech in the employment contract. Employers can make a contract in Czech and non-resident/foreign employees can request a translation.
Onboarding Process

Onboarding Process

The hiring process in the Czech Republic is as follows.
  • A job description is prepared by the HR teams. They collaborate with the unit that has a job vacancy.
  • The description is then uploaded on the official site of the company along with other platforms like LinkedIn.
  • Employers in the Czech Republic mainly post job vacancies in the local newspapers.
  • Candidates apply for the job by proving their eligibility. They are further shortlisted based on rounds of screenings and interviews.
  • Final shortlisted candidates then negotiate their terms and conditions with the employer. After the mutual agreement, the candidate is hired as an employee.
  • Once the employee is onboarded, the employer had to register them with the local authorities within eight days.
  • If the employee is an expatriate then they should provide their work permit, signed working contract, and a passport.
  • Once the employer is done with all the employment formalities as per the law, they should introduce their employees to the company.
  • It is suggested to review the employment contract at this stage and to provide job training to the employees.
  • During the first week or day, the new employee should be introduced to other employees.


The Czech Republic has three types of visas:
  • Schengen Visa - This is a short-term visa that is issued for up to 90 days. This visa is mainly granted for shorter visits like tourism, business invites, medical attention, etc
  • Long-term Visa - This visa is issued for a stay of more than 90 days. It is mainly given for medical treatments, visiting family, studies, seasonal employment, etc.
  • Long-term Residence Permit - This type of permit is usually given for employment, studies, investment, etc.

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Minimum Wage

Minimum Wage

The minimum wage in the Czech Republic is decided by the Czech Labor Laws and is also based on the type of work done. The average minimum wage in the Czech Republic is 17,500 CZK per month. The lowest minimum wage is CZK 15,200. The highest minimum wage is CZK 30,400.
Payroll Cycle

Payroll Cycle

The payroll cycle in the Czech Republic is monthly. There is a provision for getting weekly and biweekly payments.
Annual Bonus

Annual Bonus

Annual bonus is rewarded to employees on a performance basis. The 13th-month payment is not mandatory in the Czech Republic.
Health Benefits

Health Benefits

  • The health and safety of the employee are the responsibility of the employer. Employers have to maintain healthy working conditions.
  • Employees are also required to represent their health issues if any.
Working Hours and Overtime

Working Hours and Overtime

  • Work hours: An employee in the Czech Republic is supposed to work 40 hours a week. It makes 5 days of work per week starting from Monday to Friday.
  • Break: An employee is granted 30 minutes food break after 6 hours of continuous work. Every employee is entitled to have a break of 11 continuous hours. 35 hours of break is given to each employee in a week.
  • Overtime: Overtime in the Czech Republic should not exceed 8 hours in a week. An employee must not work more than 150 hours in a working year.


Sick Leaves

  • An employee can take paid sick leave of 380 days. The payment for up to 14 days is done by the employer, which is 100% of the employee's base salary and the payment of 15 to 380 days is done through social security. 70% of the employee's base salary is paid through social security for the remaining days.

Maternity leaves

  • A female employee is entitled to get maternity leave during her pregnancy. A minimum of 14 weeks of maternity leave is granted.
  • The leave must be extended to 6 weeks after the birth of the child.
  • For mothers who gave birth to multiple children at a time, the maternity leave may extend to 37 weeks.
  • A female employee is entitled to get 70% of the average gross salary during the leave.

Paternity leaves

  • A male employee gets paternity leave of 7 days. During this time, the father is entitled to get 70% of his salary.
  • The paternity leave must be availed within the first 6 weeks of the birth of the child.
  • Paternity leave is given to employees who are registered as partners in the Czech Republic.
  • The same benefits can be availed by the adoptive parents.

Annual leaves

  • An employee is granted 20 paid leaves annually. These annual leaves can be taken at any time during a working year.

Public Holidays (for the Calendar year 2023)

  • New Year's Day (1st January)
  • Good Friday (7th April)
  • Easter (9th April)
  • Easter Monday (10th April)
  • Labor Day (1st May)
  • Liberation Day (8th May)
  • Saints Cyril and Methodius Day (5th July)
  • Jan Hus Day (6th July)
  • Statehood Day, St. Wenceslas Day (28th September)
  • Independent Czechoslovak State Day (28th October)
  • Struggle for Freedom and Democracy Day (17th November)
  • Christmas Eve (24th December)
  • Christmas Day (25th December)
  • St. Stephen's Day (26th December)

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Social Security

Social Security

Social security covers paternity and maternity leave in the Czech Republic. Both employer and the employee contribute to it.
Taxes for Employers

Taxes for Employers

  • A tax rate of 9% is levied on the employer for a contribution toward health insurance.
  • An employer has to pay a 24.8% tax for social security.

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Taxes for Employees

Taxes for Employees

  • An employee has to pay an income tax. An employee has to pay a tax of 15% on an income of up to CZK 1,701,168. A tax of 23% is levied on an income above CZK 1,701,168.
  • A tax of 6.5% is levied on an employee for the contribution towards social security.
  • 4.5% is contributed to health insurance.


The probationary period in the Czech Republic is of up to 3 months. The probationary period may extend to up to the duration of 6 months.

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  • An employer is bound to provide a written notice stating the reason for termination.
  • An employee who resigns on their own is not required to provide the reason for their decision
Severance Pay

Severance Pay

Severance pay in the Czech Republic is dependent on the time duration an employee has spent in an organization:
  • An employee who has worked less than a year will not get severance pay.
  • An employee who gets terminated within a year will get a month's salary as severance pay.
  • If terminated after 2 years, the employee will get a 2-month salary.
  • If an employee is terminated after 3 years, a salary of 3 months is given.
Employees or Contractors

Employees or Contractors

  • A person who works for a company and earns a wage or salary is called an employee.
  • An organization or person who hires people to work for them is called an employer or contractor.
  • A penalty of CZK 50,000 or above is imposed on the misclassification of the employee as a contractor. This is levied for minor violations.
  • Companies that are found guilty of misclassification have to pay a penalty of CZK 10,000,000 for major violations.
  • An employer has to pay employment income tax on the behalf of the employee.
  • An employer has to pay health insurance and social security contribution for the employee.
  • A duty of payment of overhead surcharges is paid by the company if found guilty.
  • The company has to pay all the related interests and sanctions on the behalf of a misclassified employee.
Final Words

Final Words

The Czech Republic is a landlocked European country. Its labor laws are generous and inviting for companies and employees. It offers good scope to companies who are planning to expand their business. However, companies that are hiring in the Czech Republic must be registered.

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