Country Guides

Czech Republic

Quick Find

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Capital

Prague

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Language

Czech

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Remote workers

373,312

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Currency

Kč Czech Koruna (CZK)

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Working hours

40 hours per week

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Public holidays

13 days per year

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Minimum monthly salary

CZK 22,400

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Tax year

Jan 1 - Dec 31

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Date format

DD/MM/YYYY

Misclassification penalties

Fines between CZK 50,000 and CZK 10,000,000, plus retroactive employment tax, health insurance, and social security contributions, including a duty of payment of overhead surcharges, related interests, and sanctions.

Fun fact

The Czech Republic is one of the least religious countries in the world

Employer contributions

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    Employer tax: 34%
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    Social insurance: 25%
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    Health insurance: 9%

Employee contributions

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    Employee tax: 26.6%-34.6%
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    Social insurance: 6.5%
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    Health insurance: 4.5%
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    Sickness insurance: 0.6%

Income tax

Gross income: Up to CZK 1,676,052

Tax rate: 15%

Gross income: Over CZK 1,676,052

Tax rate: 23%

Looking for a quick cost estimate?

Use our calculator to understand what are all the employment costs you have to consider in the Czech Republic.

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Employer of Record in the Czech Republic

What is an EOR?

An Employer of Record (requiring a temp agency licence in Czech Republic) is the legal employer of a worker in Czech Republic. As such, the temp agency takes care of all compliance aspects of employment, including payroll, taxes, statutory benefits, employment contracts and more.

EOR responsibilities

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    Ensuring their employment is compliant with local employment laws
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    Processing local payroll
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    Filing employment related taxes and returns
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    Issuing payslips to the employee
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    Distributing salary payments

How it works

  • Company

    Maintains a direct relationship with the employee, allocates them work tasks, and manages their performance.

  • Boundless

    Takes care of payroll, taxes, benefits, ensuring the employee and the company are compliant with all legal regulations.

  • Employee

    The third party to the agreement, the employee, fulfils all of their obligations as a worker for the company.

Statutory benefits in the Czech Republic

  • Pension

    Employers and employees must contribute to the compulsory pension benefit administered by the Czech Administration of Social Security (CSSZ).

  • Unemployment insurance

    Individuals seeking a job are entitled to unemployment benefits from the social security authorities, for up to five months.

Common non-mandatory benefits in the Czech Republic

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    Additional days off
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    Meal vouchers
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    Public transportation allowance
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    Work flexibility
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    Sports and cultural activities support
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    Supplementary pension
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    Supplementary health insurance
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    Language classes
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    Bonuses
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Written employment contract signed by both the employer and the employee

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Payslip

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Equal treatment

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Reasonable accommodation

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Whistleblower protection

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Health & Safety

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Unemployment funds

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Protection against dismissal

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Data protection

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Pay transparency

Paid time off

20 days + 13 public holidays

Sick leave

380 days. The first 14 calendar days of illness are paid by the employer; from the 15th day onwards, the Czech Republic Social Security benefit provides the coverage

Maternity leave

28 weeks for the birth or adoption of one child, 37 weeks for multiple births

Paternity leave

2 weeks

Parental leave

The length of parental leave is not stipulated in Czech employment law. However, an allowance is stipulated, which is CZK 350,000 (CZK 525,000 in case of multiple children). Since the Czech Republic is a member of the European Union, all Czech Republic employers have to make sure that employees get at least two months of parental leave.

Non-compete

Non-competition clauses are valid and regulated by the Labour Code in the Czech Republic only if adherence to them can be justly required from the employee with regard to the nature of information, knowledge, and operational and technological know-how that the employee acquired during the employment relationship — i.e., this applies to managerial and key employees only.

Probation

Probationary periods in Czech Republic are not mandatory, but they are very common for all levels of employment. For probationary periods to be valid, they must be specified in the employment agreement and agreed on before the commencement of work. They cannot last longer than four months (eight months for managerial roles).

Payment frequency

The most common payment frequency is monthly, although biweekly and weekly are also allowed.

Payday

Salaries are paid in the month following the performance of work, usually by the 15th of the following month, but it is up to the company to decide on a date (no later than by the end of the month following the month for which the employee became entitled to the remuneration).

At-will termination is not recognized in the Czech Republic. Instead, employers must have a valid and recognized reason to terminate an employee, which must be stated in writing, signed by the employer, delivered in person (preferably at the workplace), and respect the appropriate notice period. If it is not possible to deliver the notice in person at the workplace, the employer may deliver the notice wherever the employer finds the employee, or through a postal service provider, or by electronic means, if the employee has agreed to it (email, data box).

Upon termination, employers must de-register employees with the Social Security Administration and the Health Insurance company within eight days.

If a Czech Republic employer wants to terminate an employee who underperforms, they must first notify the employee about their unsatisfactory work result and give them a chance to improve their performance. If the employee underperforms again within 12 months of the disciplinary notice, the employer has a valid ground to terminate the employment.

The social security administration pays unemployment benefits to Czech Republic employees who are dismissed from work and are seeking a new job as long as they have made Social Security contributions for the last two years.

FAQs

Hiring in the Czech Republic typically involves four approaches. You can run payroll from your HQ for short-term cases, engage contractors for project-based work, set up a local entity to hire directly, or partner with a temp agency licence holder. Standard EOR isn’t recognised here; Boundless holds the required temp agency licence to hire compliantly without setting up a local entity.

Contractors work well when the relationship is project-based and the person serves multiple clients. If an individual gives their full attention to your company in the Czech Republic, employment is the right structure under Czech law, covering entitlements like paid annual leave, sick leave, and social and health insurance. For project-based contractor engagements, Boundless’s Agent of Record (AOR) service handles classification, contracts, and payments compliantly in the Czech Republic.

HR compliance in the Czech Republic means your policies and procedures respect applicable Czech employment laws and regulations. When you hire there, this matters both to safeguard employee rights and to reduce employer risk. Compliance covers labour law, sick leave, annual leave (20 days plus 13 public holidays), minimum wage (CZK 22,400/month), tax credits, and a 40-hour working week. Following these is fundamental for running the business well.

Employing in the Czech Republic involves statutory contributions on top of the gross salary you are offering. Czech employers contribute approximately 25% to social insurance, covering pension, unemployment benefits, and sickness, plus 9% to health insurance. To view the exact percentages and amounts for the salary you plan to offer, you can use our handy calculator tool.

Standard EOR isn’t recognised in the Czech Republic; a temp agency licence is required, and Boundless holds one. We are the legal employer of the individual for government, tax, and employment purposes, providing a locally compliant contract, running payroll, filing employment taxes, and administering statutory benefits such as 28 weeks of maternity leave and 20 days of annual leave. You manage day-to-day work and fund payroll each cycle.

Boundless partners with employment lawyers and advisers in each country we operate in, including the Czech Republic. They ensure employment contracts and onboarding documents comply with the local jurisdiction. We hold detailed discussions on specific norms such as payroll, social protection, data protection, notice periods, and work-from-home regulations. When a sensitive issue arises, our internal team engages the relevant firm promptly.

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