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
Currency :
Czech Koruna (CZK)
Languages spoken :
Czech
Population :
10.69 million (2020 est.)
Minimum wage 2022 :
CZK 16,200 (monthly)
Cost of Living index :
$$$ (63 of 139 nations)
Payroll Frequency :
Monthly
VAT - standard rate :
21%
GDP - real growth rate :
-5.6% (2020 est.)

Statutory Holidays

The holidays mentioned below are valid for the year 2022.

Date
Holiday Name
Extra Information
January 1
Day of the re-establishment of the Independent Czech State - New Year’s Day
April 15
Good Friday
Movable - Friday before Easter
April 18
Easter Monday
Movable
May 1
Labor Day
May 8
Liberation Day
July 5
Day of the Slav Apostles Cyril and Methodius
July 6
Death of Jan Hus
September 28
Czech Statehood Day (St. Wenceslas Day)
October 28
Independent Czechoslovak State Day
November 17
Struggle for Freedom and Democracy Day
December 24-25
Christmas Eve and Christmas
December 26
St Stephen's Day
December 31
Silvester

Onboarding Time


When hiring new employees in Czech Republic through WorkMotion, the approximate onboarding time is only 4 business days. 

 

Our team ensures compliance with local employment legislation, as well as a quick and efficient onboarding process. The minimum onboarding time begins from the moment that WorkMotion has received all required information from both the client and the employee. 

 

For more complex onboardings, this time may increase depending on the selected bouquet of contract inclusions and the right-to-work status of the employee.

What You Need To Know


  • 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.

Labor Conditions


Working Hours
  • The length of 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.

Leave / Time Off

Annual Leave

Employees who have worked for at least 52 weeks of continuous employment with the same employer are entitled to four weeks of annual leave in the relevant calendar year.  

Sick Leave

Decisions regarding temporary incapacity are processed through the electronic e-leave system in the Czech Republic. Temporary incapacity for work occurs when an employee is recognized by a doctor who is temporarily incapacitated for work according to the health insurance regulation.

The first 14 days of sick leave are paid by the employer. From the 15th day of sick leave, employees are entitled to sickness benefits from the sickness insurance.

Parental Leave

In order to enable better care of a child, an employer is required to provide parental leave to a female employee and male employee upon their request. The entitlement to parental leave is granted to the mother of the child upon the termination of the maternity leave and to the father as of the child’s birth date, in the scope as requested by them, however, no longer than until the time when the child reaches the age of three. 

Maternity Leave

A female employee is entitled, in relation to childbirth and care of the newborn baby, to maternity leave for the period of 28 weeks; if the mother gave concurrent birth to two or multiple children, she is entitled to the maternity leave for the period of 37 weeks.

During this period, the employee is not entitled to salary or wage compensation, but they are entitled to sickness insurance benefits.

 

Paternity Leave

Paid paternity leave is granted for seven calendar days within six weeks after birth or the date the foster care begins. The paternity leave benefit amounts to 70% of the reduced daily basis of assessment per calendar day.

Other Types of Paid Leave

 

Leave TypeDuration
Health checkup or attendanceOne day
Bereavement leaveOne day
Wedding Celebration LeaveTwo days

Unpaid Leave

Care for a sick family member

In the event that a family member needs to be accompanied to a medical facility for examination or treatment in the event of sudden illness or injury and for a pre-arranged examination, the accompanying employee is entitled to time off work without compensation for wages or salary. 

 

Other matters

An employer may provide time off to an employee for other serious reasons, too, particularly for attending to serious personal, family, and property matters that an employee is unable to attend to outside working hours. 

Statutory Benefits

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. 

BenefitEmployer Contribution
Pension Insurance21.5%
Sickness Insurance2.1%
State Employment Policy1.2%
Health Insurance9%
Total33.8%

Health Insurance

Employees are compulsorily insured against sickness and their employers contribute towards their insurance contributions. An individual can choose the licensed company to which they will pay health insurance contributions. Entitled persons must register with one of seven health insurance funds. Usually, health insurance is provided to the Všeobecná zdravotní pojišťovna (VZP), the largest and state-owned insurer in the nation.

Employers contribute 9% towards health insurance and 2.1% towards sickness insurance.

Other Insurances

Accident Insurance

Any employer who employs at least one employee must be insured by law against their liability for damage in the event of an accident at work or occupational disease. Such insurance applies to all the employees automatically upon the signature of an employment contract. EU nationals are also eligible for compensation if employed in the Czech Republic. Any compensation for an accident at work or occupational disease is then reimbursed by insurance companies to the employer, not directly to the employee. The employer is responsible for compensating the employee.

Unemployment Insurance

Czech and other EU nationals whose most recent gainful activity has been in the Czech Republic and who have lost their job or are looking for work can apply for unemployment benefits and assistance to find work. To be eligible for unemployment benefits, the jobseeker must have completed at least 12 months of insurance periods because of employment or another gainful activity (substitute periods of employment count as well) during the decisive period (the last two years prior to inclusion in the register of job seekers).

The employer pays contributions amounting to 1.2% of the assessment basis (monthly earnings) of their employees. 

Public Pension

Pension insurance (důchodové pojištění) is compulsory for the vast majority of working residents in the Czech Republic. Retirement age and the number of insured years vary from person to person for the eligibility for the public pension. Factors that play a role include:

  • The year of birth
  • Gender
  • The number of children.

The employer contributes 21.5% of the gross salary towards the public pension.

Disclaimer

The information contained in this Country Guide is provided for informational purposes only and should not be construed as legal advice on any subject matter. The contents of this Country Guide contain general information and may not reflect current legal developments or address your situation. You should not act or refrain from acting on the basis of any content included in this Country Guide without seeking the advice or representation of a licensed attorney. WorkMotion Software GmbH disclaims all liability for actions you take or fail to take based on any content included in this Country Guide.

Information provided in this Country Guide is provided “as is” without warranty of any kind, either express or implied, including without limitation warranties of merchantability, fitness for a particular purpose, or non-infringement. WorkMotion Software GmbH periodically adds, changes, improves, updates, or removes information without notice, and assumes no liability or responsibility for any errors or omissions in the contents of this Country Guide. This Country Guide may contain links to other websites. WorkMotion Software GmbH disclaims all liability for the privacy practices or the content of such websites.

The Rise of Workations: Employer
Compliance and Data Security!

31st May – 11AM CEST.

During the webinar, we will discuss the employer risks
related to temporary work from abroad!

Join the webinar!