To calculate the salary and taxes in Czech Republic please click here.
What are the minimum wage requirements?
Effective as of 1 January 2022, the base rate for the minimum wage rises by CZK 1,000 per month to CZK 16,200, or by 5.90 crowns per hour to CZK 96.40. The increase was decided by the Czech government at the cabinet meeting of 5 November 2021, and implemented by government decree No
Contributions & Taxes
How much are the contributions & taxes?
The contribution rates for the employer are 24.8% for social security and 9% for health insurance. The contribution rates for the employee are 6.5% for social security and 4.5% for health insurance. The payments are done by the employer (for both employee and employer parts of contributions).
During payroll, employers withhold and remit the employee’s mandatory contributions to the social security insurance monthly. The social security system finances old-age pension, sickness, and unemployment benefits. Employees contribute at a rate of 6.5% of their gross salary, including benefits and allowances, capped at CZK 1,701,168 annually. The maximum annual assessment base of CZK 1,701,168 for 2021 applies.
The CIT rate is 19% and applies to all business profits, including capital gains from the sale of shares (if not exempt under the participation exemption regime).
Employees tax = 15% (individual income tax) calculated for gross salary up to 141,764 CZK. 23% for the incomes above the 141,764 CZK.
As of 2021, the Czech Republic returns to progressive taxation, with the introduction of a marginal rate of 23%, as follows: Gross income up to the social security payment cap (the threshold for 2021: CZK 1,701,168 and for 2022: CZK 1,867,728) will be subject to a 15% rate.
What is the payroll cycle?
The payroll cycle in the Czech Republic is generally monthly, and payments must be made on the same day of each month and no later than the following calendar month of the work performed.
Is there 13th salary in Czech Republic?
In the Czech Republic, there is no legal requirement to pay a 13th-month salary. However, many employers pay a 13th-month salary bonus which is typically performance-based.
Probation period rules
Probation. According to the Labor Code, the duration of the probationary period is 3 months (section 31 of the Labor Code). The two parties of the contract of employment can agree on a shorter probation period but the period of 3 months cannot be extended by agreement.
The notice period must be the same for both the employer and the employee and shall be at least two months. It may be extended only by agreement between the employer and the employee.
The severance pay amounts to one month’s payment for termination of employment in the first year, two months for the second year and three months for those who have worked more than two years for the employer.
The Czech Republic has a five-day standard working week (Monday – Friday). Normal business hours are between 8:00am and 6:00pm, and work between 10.00pm and 6.00am is considered night work. Maximum working hours cannot exceed 40 hours per week.
Leave and Benefits
Leave and Benefits rules
The Czech Republic celebrates 12 public holidays for which employees are given the day off, including:
- New Year’s Day
- Easter Monday
- May Day
- Liberation Day
- Cyril and St. Methodius
- Jan Hus Day
- Statehood Day
- Independence Day
- Freedom and Democracy Day
- Christmas Eve
- Christmas Day
- Second Day of Christmas
If public holidays fall on the weekend, they are not transferred over to a week day.
Employees in the Czech Republic are entitled to a minimum of 4 weeks off per year. Vacation is counted in hours. Therefore, employees can apply for a half day of leave.
From the 1st day to the 14th day of sickness, the employer pays 60% of salary.
From the 15th day to the 380th day of sickness, the Social Security Administration bears the cost.
Maternity leave & Paternity leave
Pregnant employees are entitled to 28 weeks of maternity leave or 37 weeks for multiple births. Leave can start 6-8 weeks prior to the expected due date. During this time, the Social Security Administration pays the maternity benefits to the employee amounting to 70% of her assessed salary.
Parental Leave: One of the parents is also entitled to parental leave until the child is 3 years of age.
Care Leave: Employees are entitled to up to 9 days of care leave if caring for a child under the age of 10 or for providing care to a sick family member.
Parental Allowance: A parental allowance is paid by the Labor Office and the amount paid is CZK 300,000 per child up to the age of 4 years, regardless of income.
Other leave (marriage, bereavement, exam leave)
Depending on the collective agreement/employment contract terms, an employee may be allowed additional leave types, as approved between the employer and employee:
Bereavement leave: In the Czech Republic, in the event of the death of an immediate member, an employee is entitled to bereavement leave of up to three days paid leave.
Care Leave: Employees are entitled to up to 9 days of care leave if caring for a child under the age of 10 or providing care to a sick family member.
Jury Duty: Czech Republic Leave Laws require all employers to provide their full-time, regularly employed employees, job-protected, unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of the requirement.
Military Leave: Employees are entitled to leave to take part in compulsory service in armed forces, such as compulsory military service, substitute military service, military exercises, and another service in armed forces, and to take part in civilian service.
Health Security & Private Insurance
Payroll taxes and the general budget are used to fund Czech’s mandatory universal healthcare system.
* Native Teams can support you in finding the best private insurance in the country. Contact us and we will send a comparison of insurance packages and prices*
Relocation and Work Permits
Native Teams will apply for your work visa in the nation on your behalf and serve as your Employer of Record. All the required documents can be uploaded using our app. Until you have your work and residency visa, Native Teams will support you by providing you with frequent information on the progress.
How long is the Visa / Work Permit process?
2 to 4 weeks depending on the authorities and provided documents
Which documents do you need?