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The Czech Republic is one of Central Europe’s most established business hubs, offering a strong economy, a highly educated workforce, and attractive infrastructure for global companies. With relatively low employment costs compared to Western Europe, it’s an increasingly popular destination for remote hiring and business expansion.
Situated in the heart of Europe, the Czech Republic offers businesses access to a skilled and multilingual workforce, excellent infrastructure, and a favourable hiring environment. Employment in the Czech Republic comes with specific legal and tax requirements that every employer needs to understand.
Get details on the Czech Republic’s employment laws, tax obligations, and cost structures in our complete hiring guide before expanding.
Employment contracts in the Czech Republic must be concluded in writing and signed before the employee’s first day. Contracts can be fixed-term or indefinite and should clearly define the role, salary, probation period, working hours, and termination terms.
Notice periods: Minimum 2 months.
Termination of employment: Permissible through mutual agreement, resignation, or employer-initiated dismissal with justifiable reason.
Want to learn more about employment contracts in the Czech Republic? Get our full template now!
Czech employers are required to offer several statutory benefits and often provide extra perks to remain competitive in the job market.
Mandatory benefits: Social security contributions (covering pensions, unemployment, and sickness insurance), health insurance.
Common perks: Meal vouchers, transport allowances, flexible working hours, wellness programs, supplementary pension plans. professional development, extra vacation days.
Leave policies: Annual leave, maternity leave, paternity leave, parental leave, sick leave.
Want to learn more about all the employee benefits available in the Czech Republic?
The Czech Republic has a structured tax and contribution system, with mandatory employer and employee contributions. Employers must withhold income taxes and submit contributions to the appropriate government agencies.
Employers in the Czech Republic must process payroll monthly. Salaries must be paid after salary inputs are submitted (typically by the 12th of the month), and must comply with minimum wage and tax regulations.
Salary payment deadline: After submission of inputs (by the 12th of each month).
Payroll declarations deadline: Invoices issued on the 15th of the month, with payslips provided after salary payment.
Payroll currency: Czech
Labour relations in the Czech Republic are governed by the Labour Code, which outlines the rights and responsibilities of both employers and employees. The maximum annual assessment base for social security contributions is 48 times the average monthly wage per year (i.e. CZK 2,234,736 for 2025). This cap applies to both employees and entrepreneurs. There is no cap on contributions for health insurance.
Total employment cost:
Minimum wage: CZK 20,800 per month
Probation period: Up to 6 months
Foreign nationals working in the Czech Republic must apply for the correct visa or work permit depending on their country of origin and job type. EU/EEA citizens don’t need a work permit but must register for residence if staying long-term.
Types of permits: EU blue card and Employee card
Process length: 3 months
Process cost: Starts at €2,200 for the EU Blue Card and €2,000 for the Employee Card
*Please note that additional costs may apply after reviewing individual use cases.
Want to learn more about obtaining visas and work permits in Croatia? Get our full country handbook now, or click here to find out more!
Using EOR services in the Czech Republic allows you to legally employ individuals in the country without opening legal entities there. The EOR takes over all the legal responsibilities as an official employer, including:
Using PEO services in the Czech Republic provides HR and administrative support, while you remain the legal employer. PEO services are ideal for employers who already have legal entities in the Czech Republic but need support to manage their workforce operations, including:
Native Teams provides a payroll calculator adjusted per the Czech Republic’s labour laws. Estimate gross-to-net salaries, tax withholdings, and employer costs in the Czech Republic with our localised calculator. Designed to meet all payroll and compliance requirements.
Note: The information provided above is for general guidance only and should not be considered a substitute for legal advice. We strongly recommend consulting with qualified professionals who specialise in local labour laws before making any hiring decisions. While the data was accurate at the time of writing, labour regulations are subject to change, and it is your responsibility to stay informed about the latest developments.
Last update: July 31, 2025
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Freelancers and gig workers in the Czech Republic are generally considered self-employed and are responsible for managing their own taxes and social security contributions. As a client, you are not required to make contributions on their behalf.
However, to avoid potential misclassification, it’s important that the working arrangement does not resemble an employer-employee relationship. Always ensure that you have a clearly defined contract that outlines the scope of work, deliverables, payment terms, and other key conditions.
