Czech Republic

The Czech Republic, located in Central Europe, is a member of the European Union and Schengen Area. It boasts a stable economy, strategic location, and a highly educated workforce, making it a top destination for global businesses expanding into Europe. Known for its manufacturing, tech, and finance sectors, the country offers attractive hiring opportunities for remote and on-site teams. However, employers must adhere to detailed labor and tax regulations.
Contractor Management
Payroll
Currency
Czech koruna (CZK)
Payroll Frequency
Monthly
Employer Taxes
33.80%

Overview

Population
~10.5 million
Language
Czech
Capital
Prague
Currency
Czech koruna (CZK)
Country code
+420
Min wage
21,300 CZK/month
Working hours
8 hours per day
Weekdays
Monday to Friday
Work hours per week
40 hours per week

Payroll

Salaried Employees
Monthly, usually paid by the 15th of the following month
Time-Based Employees
13th Salary

Not mandatory, but may be offered as a bonus or incentive

Avg employer tax

~33.8% of gross salary

Tax Breakdown

Health Insurance
9%
Pension Insurance
21.5%
Sickness Insurance
2.1%
Unemployment Insurance
Included in pension contributions
Personal Income Tax
Flat 15% (with 23% surtax on annual income above CZK 1,582,812)

Employee Contributions:

Pension Insurance
6.5%

VAT

VAT

21%

Tax Calculation for Czech Republic
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Employer cost
Total monthly cost of employment
GBP 9,633
Gross monthly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net monthly salary
GBP 5,137
Gross monthly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Employer cost
Total yearly cost of employment
GBP 9,633
Gross yearly salary costs
GBP 8,334
Estimated taxes and contributions
GBP 8,334
Employee cost
Net yearly salary
GBP 5,137
Gross yearly salary
GBP 8,334
Estimated taxes & social security
GBP 8,334
Request a detailed quotation
How it works

Onboarding Process

Onboarding in Czech Republic typically includes the following steps to ensure a smooth transition for new hires:

Employment Contract

  • Must be written in Czech (or dual-language) and signed before the first day of work
  • Include job title, duties, salary, work location, notice period, probation (if any), and work schedule

Registration

  • Notify the Czech Social Security Office and Health Insurance Fund within 8 days of onboarding
  • Foreign employees may also need to register residency or obtain a work permit

Document Collection

ID/passport, bank account details, tax ID (Rodné číslo or birth number), proof of education (if applicable)

Orientation & Training

  • Introduce employees to workplace rules, health and safety procedures, and company policies
  • Provide access to internal tools, equipment, and team introductions

Probation Review

  • Clearly communicate performance expectations and conduct a review before the probation ends
  • Document all feedback and decisions

Utilize Employer of Record (EOR) Services if Necessary

For expedited onboarding, consider partnering with EOR services, which can handle employment, taxes, and compliance on your behalf.

Monitor and Evaluate the Onboarding Process

Regularly assess the effectiveness of your onboarding program and make adjustments as needed to ensure continuous improvement.

Pre-boarding

Pre-boarding

Pre-boarding

Key Elements of an Employment Contract in Czech Republic
When drafting an employment contract for employees in Czech Republic, the following key elements should be included:

Personal Details

Name, contact information, and role of the employee.

Employee Leave Policies

Sick days
  • Paid by the employer at 60% of average salary from day 1–14
  • From day 15 onward, paid by the Czech Social Security Administration
  • Employees must provide a doctor’s note to claim paid leave
Maternity leave
  • Duration: 28 weeks (37 weeks for multiple births)
  • Starts 6–8 weeks before due date
  • Paid by the state at approximately 70% of average earnings
Paternity leave
  • 2 weeks (14 calendar days), must be taken within 6 weeks after childbirth
  • Paid by the state at approx. 70% of earnings

Parental Leave:

  • Optional leave after maternity leave until the child is 3–4 years old
  • Paid parental benefit (capped) is available from the state
Annual Leave
  • Minimum: 4 weeks (20 working days) per year
  • Many employers offer 5 weeks for competitive advantage
  • Accrual begins upon employment and is prorated
13 Public holidays in Czech Republic
1st
New Year’s Day / Restoration of the Czech State
28th
Good Friday
31st
Easter
1st
Labor Day
8th
Victory Day
5th
Saints Cyril and Methodius Day
6th
Jan Hus Day
28th
St. Wenceslas Day
28th
Independent Czechoslovak State Day
17th
Struggle for Freedom and Democracy Day
24th
Christmas Eve
25th
Christmas Day
26th
St. Stephen’s Day
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: May Day
  • 8 May: Liberation Day
  • 5 Jul: St Cyril and St Methodius Day
  • 6 Jul: Jan Hus Day
  • 28 Sep: Statehood Day
  • 28 Oct: Independence Day
  • 17 Nov: Freedom and Democracy Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

Termination Process

Grounds for Termination

  • Valid reasons include redundancy, performance issues, business closure, or mutual agreement
  • Must follow rules set by the Czech Labour Code

Notice Period

  • Standard: 2 months
  • Must be provided in writing
  • Longer notice periods may apply based on contract or collective bargaining agreement

Severance Pay

  • Based on length of service:
    • 1–2 years: 1 month’s gross salary
    • 2–5 years: 2 months’ gross salary
    • 5 years: 3 months’ gross salary
  • Applies in cases of redundancy or employer-initiated termination without cause

Probation Period

  • Up to 3 months for regular employees
  • Up to 6 months for executive-level staff
  • Either party may terminate during probation without notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

Grow Your Team in Czech Republic
with RemotePass

Expanding into Central Europe? RemotePass simplifies hiring and payroll in the Czech Republic. We help you onboard employees and contractors compliantly, manage taxes and social contributions, and issue localized payslips, without the hassle of setting up a local entity.

Building and expanding a global workforce is seamless with RemotePass. Our platform simplifies the complexities of hiring, payroll, and compliance across over 150 countries, including Czech Republic.

With RemotePass, you can quickly onboard international employees, manage payroll, ensure legal compliance, and provide competitive benefits—all from one place. Focus on growing your business while we handle the HR and legal intricacies.

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Czech Republic

The Czech Republic, located in Central Europe, is a member of the European Union and Schengen Area. It boasts a stable economy, strategic location, and a highly educated workforce, making it a top destination for global businesses expanding into Europe. Known for its manufacturing, tech, and finance sectors, the country offers attractive hiring opportunities for remote and on-site teams. However, employers must adhere to detailed labor and tax regulations.
Contractor Management
Payroll
العملة
Czech koruna (CZK)
تردد الرواتب
Monthly
ضرائب أصحاب العمل
33.80%

نظرة عامة

التركيبة السكانية
~10.5 million
اللغة
Czech
العاصمة
Prague
العملة
Czech koruna (CZK)
رمز الاتصال الدولي
+420
الحد الأدنى للأجور
21,300 CZK/month
ساعات العمل
8 hours per day
أيام الأسبوع
Monday to Friday
ساعات العمل اسبوعيا
40 hours per week

الرواتب

الموظفون برواتب ثابتة
Monthly, usually paid by the 15th of the following month
الموظفون بنظام الأجر الزمني
13th Salary

Not mandatory, but may be offered as a bonus or incentive

متوسط ​​ضريبة صاحب العمل

~33.8% of gross salary

تحصيل الضرائب

Health Insurance
9%
Pension Insurance
21.5%
Sickness Insurance
2.1%
Unemployment Insurance
Included in pension contributions
Personal Income Tax
Flat 15% (with 23% surtax on annual income above CZK 1,582,812)

Employee Contributions:

Pension Insurance
6.5%

ضريبة القيمة المضافة

ضريبة القيمة المضافة

21%

حساب الضريبة في Czech Republic
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CZ
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تكلفة صاحب العمل
إجمالي تكلفة التوظيف الشهرية
GBP 9,633
إجمالي تكاليف الراتب الشهري
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب الشهري

GBP 5,137
الراتب الشهري الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
تكلفة صاحب العمل
إجمالي تكلفة التوظيف السنوية
GBP 9,633
إجمالي تكاليف الرواتب السنوية
GBP 8,334
الضرائب والمساهمات المقدرة
GBP 8,334
تكلفة الموظف
صافي الراتب السنوي

GBP 5,137
الراتب السنوي الإجمالي
GBP 8,334
الضرائب المقدرة والضمان الاجتماعي
GBP 8,334
اطلب عرض أسعار تفصيلي
كيف تعمل الخدمة

عملية الانضمام

تشمل عملية التوظيف في Czech Republic عادة الخطوات التالية لضمان انتقال سلس للموظفين الجدد:

Employment Contract

  • Must be written in Czech (or dual-language) and signed before the first day of work
  • Include job title, duties, salary, work location, notice period, probation (if any), and work schedule

Registration

  • Notify the Czech Social Security Office and Health Insurance Fund within 8 days of onboarding
  • Foreign employees may also need to register residency or obtain a work permit

Document Collection

ID/passport, bank account details, tax ID (Rodné číslo or birth number), proof of education (if applicable)

Orientation & Training

  • Introduce employees to workplace rules, health and safety procedures, and company policies
  • Provide access to internal tools, equipment, and team introductions

Probation Review

  • Clearly communicate performance expectations and conduct a review before the probation ends
  • Document all feedback and decisions

Utilize Employer of Record (EOR) Services if Necessary

For expedited onboarding, consider partnering with EOR services, which can handle employment, taxes, and compliance on your behalf.

Monitor and Evaluate the Onboarding Process

Regularly assess the effectiveness of your onboarding program and make adjustments as needed to ensure continuous improvement.

Pre-boarding

Pre-boarding

Pre-boarding

العناصر الأساسية في عقد العمل في Czech Republic
عند إعداد عقد عمل للموظفين في Czech Republic يجب تضمين العناصر الأساسية التالية:

Personal Details

Name, contact information, and role of the employee.

سياسات إجازات الموظفين

الإجازات المرضية
  • Paid by the employer at 60% of average salary from day 1–14
  • From day 15 onward, paid by the Czech Social Security Administration
  • Employees must provide a doctor’s note to claim paid leave
إجازة الأمومة
  • Duration: 28 weeks (37 weeks for multiple births)
  • Starts 6–8 weeks before due date
  • Paid by the state at approximately 70% of average earnings
إجازة الأبوة
  • 2 weeks (14 calendar days), must be taken within 6 weeks after childbirth
  • Paid by the state at approx. 70% of earnings

Parental Leave:

  • Optional leave after maternity leave until the child is 3–4 years old
  • Paid parental benefit (capped) is available from the state
Annual Leave
  • Minimum: 4 weeks (20 working days) per year
  • Many employers offer 5 weeks for competitive advantage
  • Accrual begins upon employment and is prorated
13 عطلات رسمية في Czech Republic
1st
New Year’s Day / Restoration of the Czech State
28th
Good Friday
31st
Easter
1st
Labor Day
8th
Victory Day
5th
Saints Cyril and Methodius Day
6th
Jan Hus Day
28th
St. Wenceslas Day
28th
Independent Czechoslovak State Day
17th
Struggle for Freedom and Democracy Day
24th
Christmas Eve
25th
Christmas Day
26th
St. Stephen’s Day
  • 1 Jan: New Year's Day
  • 15 Apr: Good Friday
  • 18 Apr: Easter Monday
  • 1 May: May Day
  • 8 May: Liberation Day
  • 5 Jul: St Cyril and St Methodius Day
  • 6 Jul: Jan Hus Day
  • 28 Sep: Statehood Day
  • 28 Oct: Independence Day
  • 17 Nov: Freedom and Democracy Day
  • 24 Dec: Christmas Eve
  • 25 Dec: Christmas Day
  • 26 Dec: 2nd Day of Christmas

عملية إنهاء العقود

Grounds for Termination

  • Valid reasons include redundancy, performance issues, business closure, or mutual agreement
  • Must follow rules set by the Czech Labour Code

Notice Period

  • Standard: 2 months
  • Must be provided in writing
  • Longer notice periods may apply based on contract or collective bargaining agreement

Severance Pay

  • Based on length of service:
    • 1–2 years: 1 month’s gross salary
    • 2–5 years: 2 months’ gross salary
    • 5 years: 3 months’ gross salary
  • Applies in cases of redundancy or employer-initiated termination without cause

Probation Period

  • Up to 3 months for regular employees
  • Up to 6 months for executive-level staff
  • Either party may terminate during probation without notice

Personal Details

Name, contact information, and role of the employee.

_'s Booming Remote Workforce

Challenges of Remote Hiring in _

Simplifying Remote Hiring in _ with RemotePass 

نمِّ فريقك في Czech Republic
مع ريموت باس

Expanding into Central Europe? RemotePass simplifies hiring and payroll in the Czech Republic. We help you onboard employees and contractors compliantly, manage taxes and social contributions, and issue localized payslips, without the hassle of setting up a local entity.

يصبح بناء فريق عالمي وتوسيعه مهمة سهلة مع ريموت باس. منصتنا تبسّط تعقيدات التوظيف والرواتب والامتثال القانوني في أكثر من 150 دولة، بما في ذلك Czech Republic.

مع ريموت باس، يمكنك ضم الموظفين الدوليين بسرعة، وإدارة الرواتب، وضمان الامتثال القانوني، وتقديم مزايا تنافسية — كل ذلك من مكان واحد. ركّز على تنمية أعمالك، ودع المهام الإدارية والقانونية علينا.

تجربة مجانية لمدة 7 أيام

لا حاجة لبطاقة ائتمان

يمكنك الإلغاء في أي وقت

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