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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Capital :
Prague
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Currency :
Czech Koruna (CZK)
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Languages spoken :
Czech
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Population :
10.7 million (2021 est.)
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Minimum wage 2023 :
CZK 18,900 (monthly)
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Cost of Living index :
$$$ (63 of 139 nations)
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Payroll Frequency :
Monthly
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VAT - standard rate :
21%
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GDP - real growth rate :
3.3% (2021 est.)
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The national holidays mentioned below are valid for the year 2024.
The approximate time for sharing the contract with an employee in Czech Republic is 4 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.
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.
Employees who have worked at least 52 weeks of continuous employment with the same employer are entitled to four weeks of annual leave in the relevant calendar year.
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.
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 the time when the child reaches the age of three.
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.
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.
| Leave Type | Duration |
| Health checkup or attendance | One day |
| Bereavement leave | One day |
| Wedding Celebration Leave | Two days |
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.
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.
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% |
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.
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 employees automatically upon 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.
Czech and other EU nationals whose most recent gainful activity has been in the Czech Republic and who have lost their jobs 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 other 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.
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 employer contributes 21.5% of the gross salary towards the public pension.
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.
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