Talent Wiki - Czech Republic
Your quick guide on talent and labor compliance norms in Czech Republic
Capital
Prague
Currency
Czech Koruna (CZK)
Languages
Czech
Payroll Frequency
Monthly
GDP per Capita
$28,094.62
Employer Tax
33.8%
Talent Overview
Czech Republic’s developed economy has strengthened its labor market and maintained the country’s growth. Unemployment rates are forecasted to decrease by 3% in the following year as the country’s trade relations in the European Zone continue to flourish. The Automobile Industry largely attributes to the success of its import and export activities and has extended its market to other continents.
Major economic hubs:
Prague, Brno, Ostrava, Plzeň
Skills in demand:
User experience (UX), User interface (UI) design, Digital Marketing, Data Analytics, Data Scientist, Software Engineering, Product Management
Local Universities
Below are the top universities with ranks in Czech Republic:
Univerzita Karlova
Ranking
Local: 1
World: 146
Masarykova univerzita
Ranking
Local: 2
World: 153
Ceské vysoké ucení technické v Praze
Ranking
Local: 3
World: 358
Vysoké ucení technické v Brne
Ranking
Local: 4
World: 568
Univerzita Palackého v Olomouci
Ranking
Local: 5
World: 652
Salary Data
The below table mentions the average salary of some common jobs in the Czech Republic:
| Job Title | Average Monthly Salary (CZK) | Average Monthly Salary (USD) |
| Financial Manager | 125,000 | 5,766.59 |
| General Manager | 110,000 | 3,915.21 |
| Business Development Manager | 98,600 | 3,759.13 |
| Financial Analyst | 75,800 | 2,722.87 |
| Business Analyst | 76,000 | 5,636.52 |
| Project Manager | 69,700 | 6,763.82 |
Talent Sourcing Tips
Top Local Job Boards
Profesia ; Jobs.cz ; jobDNES.cz
Number of LinkedIn users
2,075,000
Multiplier Recruitment Partner
Employing in the Czech Republic
Businesses planning to expand operations in the Czech Republic must be knowledgeable about its labor laws and regulations. In doing so, onboarding becomes seamless, and employees’ welfare will be prioritized.
Employee Contract
There is no particular regulation for language use in Czech employment contracts. Employers may use the Czech language, and foreign workers with limited knowledge of the local language may request a translation.
Probation Period
The probation period in the Czech Republic is up to 3 months.
Public and Provincial Holidays 2023
| Date | Name | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 7 Apr | Good Friday | National Holiday |
| 10 Apr | Easter Monday | National Holiday |
| 1 May | May Day | National Holiday |
| 8 May | Liberation Day | National Holiday |
| 5 Jul | St Cyril and St Methodius Day | National Holiday |
| 6 Jul | Jan Hus Day | National Holiday |
| 28 Sep | Statehood Day | National Holiday |
| 28 Oct | Independence Day | National Holiday |
| 17 Nov | Freedom and Democracy Day | National Holiday |
| 24 Dec | Christmas Eve | National Holiday |
| 25 Dec | Christmas Day | National Holiday |
| 26 Dec | 2nd Day of Christmas | National Holiday |
Employee Leaves
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 20 days | Yes |
| Sick Leave | Base on severity | Yes |
| Maternity Leave | 28 weeks | Yes |
Payroll
Payroll Cycle
Salaries in the Czech Republic are paid every month.
Minimum Wage
The minimum wage in the Czech Republic depends on the industry and the employee’s job role. It ranges from 17,300 CZK to 32,400 CZK.
Overtime Pay
The standard working hours in the Czech Republic are 40 hours per week. Employers in the Czech Republic have two options to choose from when compensating their employees for extra work. They may either pay the employees 125% of their regular wage or provide rest hours for the same amount of overtime work.
Bonus
13th Month Pay
A 13th-month pay is not mandatory in Czech Republic.
Employee Benefits
Employees in the Czech Republic are provided with the following benefits during their employment:
- Healthcare
- Maternity benefits
- Pension
- Social Security
Taxes
Employer Payroll Tax
| Type of Contribution | Rate |
| Social Security | 24.8% |
| Health Insurance | 9% |
Employee Payroll Tax
| Type of Contribution | Rate |
| Social Security | 6.5% |
| Health Insurance | 4.5% |
Employee Income Tax
| Income Threshold | Rate |
| 0 – 1,867,728 CZK | 15% |
| 1,867,728 CZK and above | 23% |
VAT
The Standard VAT in the Czech Republic is 21%.
Offboarding & Termination
In the Czech Republic, the following scenarios can be grounds for an employee to be terminated:
- When an employee and employer have agreed to terminate the contract at a specific date.
- When an employee submits a notice of termination to the employer.
- When an employer and employee agree for immediate termination of the employment contract.
- When an employer terminates an employment contract during the probationary period.
A written notice must be given by either the employer or the employee when terminating an employment contract. Notice period is generally 2 months before the effective date of dismissal.
The Severance Pay in the Czech Republic varies on the reason for dismissing an employee. When employees are dismissed because they are incapable of performing due to health reasons, they are entitled to a month’s pay as a severance pay. When employees are dismissed due to redundancy and company reorganization, their severance pay ranges from one month’s to three months pay, depending on their years of service.
Visa and Immigration
Foreign employees from European Union (EU)countries don’t need a work permit when working in the Czech Republic. On the other hand, employees not belonging to EU nations should secure a work residence permit to work in the country legally. There are two types of work permits:
- Blue Card – for skilled workers
- Employee Card – for unskilled workers.
