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.
For global companies looking to Employer of Record in the Czech Republic or to hire in the Czech Republic efficiently, the country offers a skilled workforce, strong infrastructure, and a stable business environment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Czech Republic.
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Fast-track your talent onboarding while ensuring 100% compliance with local regulations. using an Employer of Record in Czech Republic
Calculate net salary post deductions and compare it with the salary in other countries instantly.
Receive process support by an experienced team of experts & pay your talent on time and in their local currency, ideal for companies looking to hire employees or contractors in Czech Republic
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.
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.
For global companies looking to Employer of Record in the Czech Republic or to hire in the Czech Republic efficiently, the country offers a skilled workforce, strong infrastructure, and a stable business environment.
*Please note that the official currency is the currency of remuneration when employed through WorkMotion in the Czech Republic.
The national holidays mentioned below are valid for the year 2026 and are critical for hiring in Czech Republic planning:
The national holidays mentioned below are valid for the year 2026 and form part of the statutory holidays in Czech Republic. These holidays must be observed when companies hire employees in Czech Republic or manage local payroll through an Employer of Record.
| January 1 | Day of the re-establishment of the Independent Czech State - New Year’s Day | |
| April 3 | Good Friday | Movable - Friday before Easter |
| April 6 | Easter Monday | Movable |
| May 1 | Labour 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 | Christmas Eve | |
| December 25 | Christmas | |
| December 26 | Boxing 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.
This streamlined process is especially helpful for companies using an Employer of Record in the Czech Republic or EOR Czechia to onboard talent quickly.
These obligations are managed efficiently when companies work with an Employer of Record in Czechia or a PEO in the Czech Republic.
Social security contributions provide funding for three separate funds:
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% |
This structure applies whether companies are expanding via full-time employment or hiring contractor in the Czech Republic, with compliance handled through an EOR Czech Republic setup.
The probation period must be agreed upon in writing. The parties can agree on a probationary period of:
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.
The probation period must be agreed upon in writing. The parties can agree on a probationary period of:
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.
Social security contributions provide funding for three separate funds:
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% |
This structure applies whether companies are expanding via full-time employment or hiring contractor in the Czech Republic, with compliance handled through an EOR Czech Republic setup.
WorkMotion operates through its own entity in the Czech Republic, acting as the legal employer for your hire, so you can onboard compliantly without registering a local company, navigating the Czech Labor Code alone, or managing statutory filings across multiple authorities.
WorkMotion generates an employment contract aligned with Czech labor law, covering contract type (fixed-term or indefinite), probation period, working hours, notice period, and all mandatory terms under the Czech Labor Code.
Contracts are issued in writing before work begins, as required by Czech law. The standard contract-sharing time is approximately five business days from the time WorkMotion receives all required information from both you and the employee.
Once the contract is signed, WorkMotion registers the employee with the relevant Czech authorities.
This includes notification to the Czech Social Security Administration (ČSSZ) within eight days of the hire date, registration with the employee’s chosen health insurance company, and mandatory accident insurance registration with Kooperativa – the insurer authorized by Czech law to cover employer liability for work-related injuries and occupational diseases.
WorkMotion configures payroll in Czech Koruna (CZK), the statutory currency of remuneration. This includes calculating gross-to-net salary, withholding personal income tax at the applicable rate (15% on income up to CZK 1,676,052 annually; 23% above that threshold), and setting up employer contributions: 24.8% for social security and 9% for health insurance on top of gross salary.
Employee-side deductions — 7.1% for social security and 4.5% for health insurance — are withheld and remitted on the employee’s behalf. Total employer on-costs run approximately 33.8% above gross salary.
To get an estimate on how much a Czech hire will cost you, use WorkMotion’s employee cost calculator.
WorkMotion enrolls the employee in all statutory benefits required under Czech law:
WorkMotion also advises on common supplementary benefits in the Czech market – such as meal vouchers and home office allowances – and handles their tax treatment correctly, including the 2025 exemption limits for health-related non-cash benefits (up to CZK 46,557 per year).
Each month, WorkMotion processes payroll, remits income tax to the Czech Financial Administration by the 20th of the following month, and pays social security and health insurance contributions to the ČSSZ and the employee’s chosen health insurer.
Accident insurance premiums are remitted quarterly to Kooperativa. WorkMotion issues the employee a monthly payslip detailing all wage components and deductions — a legal requirement under Czech law. You receive a single, transparent invoice per employee.
Czech labor law changes frequently.
The 2024 Labour Code amendments introduced new remote work rules, updated probation period limits, and revised overtime tracking requirements. The June 2025 flexible amendment changed how notice periods are calculated — they now commence immediately upon delivery rather than on the first day of the following month.
WorkMotion monitors these changes and updates employment terms, payroll calculations, and statutory filings automatically, so your Czech hires remain compliant without your HR team tracking every legislative update.
For most companies hiring one to a handful of people in Czechia, the comparison between Employer of Record and entity setup is straightforward — but the details matter.
| Factor | WorkMotion EOR | Czech Republic Entity Setup |
|---|---|---|
| Setup cost | No incorporation cost — single monthly fee per employee | Estimated €15,000–25,000+ in legal, notarization, and registration fees |
| Time to first hire | Days from signed contract | Typically four to six months for full entity registration and payroll setup |
| Ongoing legal exposure | WorkMotion holds legal employer liability and manages compliance | Your entity carries full legal exposure under Czech labor law and tax regulations |
| Ongoing admin burden | Single invoice; WorkMotion manages ČSSZ filings, health insurer reporting, tax remittance, and payroll | Internal or outsourced accounting (estimated €800–1,500/month), separate payroll system, and ongoing legal counsel |
| Exit flexibility | Offboard an employee or exit the market without entity dissolution | Dissolving a Czech entity requires a formal liquidation process, time-consuming and costly |
EOR in the Czech Republic is well-suited to companies that need to hire quickly, are testing the market, or are scaling a small team without committing to the overhead of a local subsidiary.
If you’re planning to hire 15 or more people in Czechia long-term and want direct brand ownership of the employment relationship, WorkMotion’s Direct Hiring solution – which registers you as a foreign employer in the Czech Republic – may be worth evaluating alongside EOR.
Czech labor law is more detailed than many foreign HR teams expect. These are the compliance gaps that come up most often.
Czech law requires that employment contracts be issued in writing before the employee begins work — not after.
Foreign employers accustomed to offer letters and retroactive paperwork often miss this.
Termination in the Czech Republic is tightly regulated. Employers must provide written notice with a valid statutory reason. As of June 2025, the notice period now begins immediately upon delivery rather than on the first day of the following month.
The standard notice period is two months, with a shorter one-month period applying in cases of disciplinary breaches or failure to meet job requirements. Severance pay obligations depend on both the reason for dismissal and the employee’s length of service.
Foreign employers who attempt to terminate without following these steps face legal challenges from the State Labour Inspection Office.
The June 2025 Labour Code amendment extended the maximum probation period from three to four months for regular employees, and from six to eight months for managerial positions.
Many foreign employers either set probation periods that exceed the legal maximum or fail to specify them correctly in the contract.
Czech law limits overtime to eight hours per week and 150 hours per calendar year without a collective agreement. Overtime must be compensated at a minimum of 125% of the average monthly hourly wage.
Foreign employers managing Czech employees remotely often fail to track overtime formally – which creates both payroll errors and legal exposure.
Hiring in the Czech Republic requires registration with the ČSSZ within eight days of the hire date, registration with the employee’s chosen health insurance company, and accident insurance registration with Kooperativa.
Each authority has its own filing deadlines and reporting formats. Missing any one of these steps creates immediate compliance exposure. WorkMotion handles all registrations as part of the standard onboarding process.
Czech law defines a worker as an employee if they perform dependent work.
Using a contractor arrangement for what is effectively full-time employment constitutes a legal violation.
As of 2025, financial penalties for misclassification range from CZK 50,000 to CZK 10,000,000. WorkMotion’s Contractor Management service includes mandatory misclassification checks before each onboarding to flag this risk before it becomes a problem.
SMEs headquartered in Germany and the Netherlands — typically 50 to 300 employees — use WorkMotion to hire software engineers, DevOps specialists, and product managers based in Prague, Brno, and Ostrava.
The Czech Republic has a well-established tech sector and a growing pool of English-speaking senior engineers. These companies need compliant employment in CZK without setting up a Czech subsidiary, and they need it in days – not after a six-month incorporation process.
Post-Brexit, UK companies expanding into the EU often use the Czech Republic as an early foothold. With an eye on hiring local sales, customer success, or compliance staff to serve Central European markets.
WorkMotion’s own entity in Czechia means these hires are covered by a direct employment relationship, not a third-party intermediary, which matters for companies with data protection and contractual requirements.
Growing green tech and e-commerce companies – often with remote-first structures – hire Czech-based specialists in engineering, logistics, and operations as part of distributed European teams.
Around 28% of WorkMotion’s customers are fully remote or hybrid companies where EOR covers a significant share of their total headcount. For these teams, the Czech Republic is one hiring destination among several, and WorkMotion’s single-platform approach across 160+ countries keeps the admin manageable.
If you’ve found the right person in Prague or Brno and need them employed compliantly, WorkMotion removes that friction entirely.
Through our own entity in the Czech Republic, we act as the legal employer, generate locally compliant contracts, run payroll in Czech Koruna, and handle every statutory obligation from day one. Most hires are onboarded within days of the signed contract.
Before you commit, use WorkMotion’s Employment Cost Calculator to see the full cost of hiring in the Czech Republic – including employer social security and health insurance contributions.
When you’re ready to move forward, our team will walk you through the process and answer any compliance questions specific to your hire.
Book a Demo Today.
WorkMotion operates through its own entity in the Czech Republic — meaning WorkMotion is the direct legal employer of your hire, not an intermediary or local partner acting on WorkMotion’s behalf.
This matters for compliance accountability: your employee’s contract, payroll, and statutory registrations are handled by an entity that holds direct legal responsibility under Czech labor law, not passed through a subcontracted arrangement.
Czech labor law permits fixed-term contracts, but they are strictly regulated. A fixed-term contract can last a maximum of three years and may be renewed or extended no more than twice — after which the employment relationship automatically converts to an indefinite contract.
Foreign employers who repeatedly renew fixed-term contracts without understanding this limit often find themselves in an unintended permanent employment relationship, which carries full termination protections under the Czech Labour Code.
On top of gross salary, employers in the Czech Republic are required to contribute 24.8% for social security and 9% for health insurance — bringing total employer on-costs to approximately 33.8% above gross salary.
You should also factor in the EOR service fee and, where applicable, accident insurance premiums remitted quarterly to Kooperativa, the insurer mandated by Czech law to cover employer liability for work-related injuries.
Czech sick leave works in two stages.
For the first 14 calendar days of illness, the employer is responsible for paying sick pay — at 60% of the employee’s average reduced earnings — but only from day four onward; the first three days are unpaid unless the employer voluntarily elects to cover them.
From day 15 onward, the Czech Social Security Administration (ČSSZ) takes over payment directly to the employee, removing the financial obligation from the employer for extended absences.
The June 2025 amendment to the Czech Labour Code introduced two significant changes that directly affect employment structuring.
First, notice periods now begin immediately upon delivery of the written notice — rather than on the first day of the following calendar month — which shortens the effective notice window compared to previous practice.
Second, maximum probation periods were extended: from three to four months for standard employees, and from six to eight months for managerial roles — giving employers more time to assess a hire before full termination protections apply.
Yes, but the work authorization requirements still apply regardless of how the employment is structured.
Non-EU nationals working in the Czech Republic typically require a work permit and, in most cases, a long-term residence permit or Employee Card — a combined document that covers both residence and work authorization.
Once WorkMotion has received all required information from you and the employee, the standard contract sharing time is approximately five business days.
After the contract is signed, WorkMotion registers the employee with the ČSSZ, their chosen health insurer, and Kooperativa — and configures payroll in Czech Koruna — so most hires are fully onboarded within days rather than the months required to set up a Czech entity.
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