Payroll Cycle
Minumum Wage
Overtime Pay
Visa Immigration

Talent Wiki - Czech Republic

Your quick guide on talent and labor compliance norms in Czech Republic
Talk to our experts
Capital
Prague
Currency
Czech koruna (CZK)
Languages
Czech
Payroll Frequency
Monthly
GDP per Capita
28,076.59 USD (2022)
Employer Tax
33.8%

Supplementary Guide for Employment and Expansion in Czech Republic

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

The top local universities in Czech Republic are listed below:

Univerzita Karlova

RANKING

Czech Republic : 1

World : 211

Masarykova univerzita

RANKING

Czech Republic : 2

World : 324

Ceské vysoké ucení technické v Praze

RANKING

Czech Republic : 3

World : 499

Vysoké ucení technické v Brne

RANKING

Czech Republic : 4

World : 624

Vysoká škola ekonomická v Praze

RANKING

Czech Republic : 5

World : 976

Salary Data

The table below shows the average monthly salaries of some jobs in Czech Republic.

No. Job Title Monthly Salary Range (in CZK) Monthly Salary Range (in USD)
1 IT Product Manager 45,100 - 133,000 1,955.44 - 5,766.59
2 Software Engineer 28,400 - 90,300 1,231.36 - 3,915.21
3 Data Analyst 29,500 - 86,700 1,279.06 - 3,759.13
4 UX Designer 21,400 - 62,800 927.86 - 2,722.87
5 Project Manager 40,800 - 130,000 1,769.00 - 5,636.52
6 Sales Manager 49,100 - 156,000 2,128.87 - 6,763.82
7 Accountant 21,000 - 66,900 910.51 - 2,900.64

Talent Sourcing Tips

Top Local Job Boards:

Profesia ; Jobs.cz ; jobDNES.cz 

Number of LinkedIn users:

1,995,000

Multiplier Recruitment Partner:

iXceed

Employing in the Czech Republic

When businesses are planning to expand operations in the Czech Republic, they 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

Probation period in the Czech Republic is up to 3 months. 

Public and Provincial Holidays

Date Name Type
1 Jan New Year's Day National holiday
1 Jan Restoration of the Czech Independence Day National holiday
2 Mar Carnival / Ash Wednesday Religious Holiday (Christian)
10 Apr Palm Sunday Religious Holiday (Christian)
14 Apr Maundy Thursday Religious Holiday (Christian)
15 Apr Good Friday National holiday
16 Apr Holy Saturday Religious Holiday (Christian)
17 Apr Easter Sunday Religious Holiday (Christian)
18 Apr Easter Monday National holiday
1 May Labor Day / May Day National holiday
8 May Victory in Europe Day National holiday
26 May Ascension Day Religious Holiday (Christian)
5 Jun Whit Sunday Religious Holiday (Christian)
6 Jun Whit Monday Religious Holiday (Christian)
12 Jun Trinity Religious Holiday (Christian)
5 Jul Day of Saints Cyril and Methodius National holiday
6 Jul Jan Hus Day National holiday
28 Sep St. Wenceslas Day National holiday
28 Oct Independent Czechoslovak State Day National holiday
17 Nov Struggle for Freedom and Democracy Day National holiday
24 Dec Christmas Eve National holiday
25 Dec Christmas Day National holiday
26 Dec St. Stephen's Day 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.

Know More

Minimum Wage

The minimum wage in the Czech Republic varies depending on the role and industry that the employee occupies. It ranges from 16,200 CZK to 32,400 CZK.

Know More

Overtime Pay

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.

Know More

Health Examination Clause

Bonus

13th Month Pay

A 13th month pay is not mandatory in Czech Republic.

Employee Benefits

Employees in Czech Republic are provided with the following benefits during their employment:

  • Healthcare
  • Maternity benefits
  • Pension
  • Social Security
Talk to our experts

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 Czech Republic is 21%.

Offboarding & Termination

Termination Process

In Czech Republic, the following scenarios can be grounds for and employment to be terminated:

  • ~When an employee and employer has 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 agrees for an immediate termination of the employment contract.
  • ~When an employer terminates an employment contract during probationary period

Notice Period

A notice in writing 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.

Severance Pay

The Severance Pay in 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.
Know More
Streamline payroll and compliance for your international workforce
Get Started