Hire in Czech Republic

The Czech Republic, also known as Czechia, is located in central Europe. It comprises the historical provinces of Bohemia and Moravia along with the southern tip of Silesia, collectively often called the Czech Lands. In 2016, the country adopted the name “Czechia” as a shortened, informal name for the Czech Republic.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Czech Republic.

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Hire in Czech Republic through an

EOR

Easily onboard your remote talent in Czech Republic through our Employer of Record (EOR) solution. Our subsidiaries and network partners make this process fast and 100% compliant.

A quick overview of Czech Republic

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Cost of living index

$$$ (63 of 139 nations)

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Currency

Czech Koruna (CZK)

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Payroll frequency

Monthly

Basic facts

The Czech Republic, also known as Czechia, is located in central Europe. It comprises the historical provinces of Bohemia and Moravia along with the southern tip of Silesia, collectively often called the Czech Lands. In 2016, the country adopted the name “Czechia” as a shortened, informal name for the Czech Republic.

 

*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Czech Republic.

Capital

Prague

Official language/s

Czech

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Population

10.87 million (2023 est.)

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VAT - standard rate

21%

The national holidays mentioned below are valid for the year 2025.

January 1Day of the re-establishment of the Independent Czech State - New Year’s Day
April 18Good FridayMovable - Friday before Easter
April 21Easter MondayMovable
May 1Labor Day
May 8Liberation Day
July 5Day of the Slav Apostles Cyril and Methodius
July 6Death of Jan Hus
September 28Czech Statehood Day (St. Wenceslas Day)
October 28Independent Czechoslovak State Day
November 17Struggle for Freedom and Democracy Day
December 24Christmas Eve
December 25Christmas
December 26Boxing Day

The approximate time for sharing the contract with an employee in Czech Republic is 2 business days assuming no special requests or changes to our standard employment contract. Any such requests or changes would need to undergo internal and external review, directly leading to a time delay.

NOTE: This number is subject to change and is only an estimation of the Contract Sharing Time. The estimated Contract Sharing Time begins from the moment that WorkMotion has received all required information from both the client and the employee.

  • In the Czech Republic, all new employers are required to undergo medical check-ups at the cost of the employer.
  • Larger companies have collective agreements that can, for example, govern working time, overtime pay, time in lieu, various contributions for holidays, pensions, the setting up of company crèches, and improved occupational safety.

Social security contributions provide funding for three separate funds:

  • Pensions
  • Unemployment benefits
  • Sickness, and
  • Healthcare Insurance.

A total of 33.8% of the gross salary is paid by the employer towards social security. An overview of the employer’s contribution to social security is presented in the table below. 

Benefits Employer Contribution
Pension Insurance 21.5%
Sickness Insurance 2.1%
State Employment Policy 1.2%
Health Insurance 9%
Total 33.8%

Working Hours
  • The length of the standard weekly working hours is 40 hours per week.
  • Employees who work continuously for six hours at the utmost are entitled to a work break for a meal and rest lasting at least 30 minutes. 

 

Overtime
  • Overtime work may only be done in exceptional cases. Overtime work may not exceed eight hours per week and 150 hours per calendar year.
  • Overtime pay is 125% of the regular pay. It is also possible to give additional time off in place of overtime pay.
  • Overtime performed on days of uninterrupted rest in a week is paid with a premium of 50% of the average earnings per hour or compensatory time off in lieu of the overtime premium.
Probation Period

The probation period must be agreed upon in writing. The parties can agree on a probationary period of:

  • Six months for managerial employees; and
  • Three months for other employees.

 

Termination Notice Period

The notice period must be the same for both the employer and the employee. It must be at least two months. It may be extended only by agreement between the employer and the employee.

The notice period starts to run on the first day of the calendar month following the delivery of the notice and comes to an end upon the expiry of the last day of the relevant calendar month.

Working Hours
  • The length of the standard weekly working hours is 40 hours per week.
  • Employees who work continuously for six hours at the utmost are entitled to a work break for a meal and rest lasting at least 30 minutes. 

 

Overtime
  • Overtime work may only be done in exceptional cases. Overtime work may not exceed eight hours per week and 150 hours per calendar year.
  • Overtime pay is 125% of the regular pay. It is also possible to give additional time off in place of overtime pay.
  • Overtime performed on days of uninterrupted rest in a week is paid with a premium of 50% of the average earnings per hour or compensatory time off in lieu of the overtime premium.
Probation Period

The probation period must be agreed upon in writing. The parties can agree on a probationary period of:

  • Six months for managerial employees; and
  • Three months for other employees.

 

Termination Notice Period

The notice period must be the same for both the employer and the employee. It must be at least two months. It may be extended only by agreement between the employer and the employee.

The notice period starts to run on the first day of the calendar month following the delivery of the notice and comes to an end upon the expiry of the last day of the relevant calendar month.

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Social security contributions provide funding for three separate funds:

  • Pensions
  • Unemployment benefits
  • Sickness, and
  • Healthcare Insurance.

A total of 33.8% of the gross salary is paid by the employer towards social security. An overview of the employer’s contribution to social security is presented in the table below. 

Benefits Employer Contribution
Pension Insurance 21.5%
Sickness Insurance 2.1%
State Employment Policy 1.2%
Health Insurance 9%
Total 33.8%