Overview
Payroll Cycle
Employer Contributions
Employee Contributions
Minimum Wage
Hiring
Hiring Employees
Hiring Contractors
Hiring Expats
Background Checks
Employment Contracts
Onboarding
Employee Benefits
Social Security
Healthcare and Insurance
Leave Policy
Public Holidays
Work Permit and Work Visa
Probation Period
Notice Period
Termination and Severance
Personal Income Tax
Are you considering expanding your business operations to the Czech Republic? As you venture into a new market, managing the complexities of employment and compliance can be overwhelming. That's where an Employer of Record (EOR) in the Czech Republic can be your trusted partner. Our web page provides valuable insights into the role of an EOR and how they can streamline your expansion efforts. Discover the advantages of collaborating with an EOR in the Czech Republic, including ensuring legal compliance, handling payroll and tax obligations, managing HR matters, and minimizing risks. With our in-depth knowledge of the local landscape, we can help you navigate the intricacies of employment in the Czech Republic, allowing you to focus on driving your business forward.
Hiring Options in Czech Republic
Employees:
Employers in the Czech Republic have the option to hire employees on indefinite contracts, fixed-term contracts, full-time, or part-time. Part-time employment requires an individual agreement with the employee. Fixed-term contracts have limitations, such as a maximum duration of 3 years with a maximum of 2 renewals, subject to certain exceptions. Part-time and fixed-term employees are protected from discrimination based on their employment status.
Independent contractor:
Engaging independent contractors is possible, but it is important to be cautious about potential misclassification issues. If the relationship between the parties exhibits signs of dependent work, it may be considered "illegal work."
Agency worker:
Agency workers are entitled to equal treatment in terms of pay and other employment conditions, similar to other employees.
Other options:
Apart from traditional employment contracts, there are two additional employment options recognized under Czech law: "agreement on work performance" and "agreement on work activity."
Agreement on work performance:
- Limited to a maximum of 300 hours per calendar year.
- Offers more flexibility, particularly regarding termination procedures.
- Less administrative burden.
- Social and health insurance contributions are payable only from specific remuneration thresholds.
Agreement on work activity:
- The average hours worked must not exceed half of regular working hours (approximately 20 hours per week).
- Provides more flexibility, especially in terms of termination procedures.
- Involves less administrative burden.
- Social and health insurance contributions are payable only from certain remuneration thresholds.
| Overview | |
| Continent | Europe |
| Country | Czech Republic |
| Capital | Prague |
| Time zone | UTC+01:00 (CET) (CRT) |
| Total Time zones | 1 |
| Working hours per week | 40 |
| Working week | Monday–Friday |
| Typical hours worked | 8 |
| Personal Tax filing deadline | 1 April (or 1 May for electronic filing) |
| Financial Year | 1st Jan to 31st Dec |
| Date format | dd.mm.yyyy |
| Currency | Czech Koruna (CZK) |
| VAT | the standard rate is 21% |
Employer Payroll Contributions in Czech Republic
| Employers | % of Gross Salary |
| Pension | 21.5% |
| Sickness | 2.1% |
| Health Insurance | 9% |
| Unemployment | 1.2% |
| Total Employment Cost | 33.8% |
Employee Payroll Contributions in Czech Republic
| Employees | % of Gross Salary |
| Pension | 6.5% |
| Health Insurance | 4.5% |
| Total Employee Cost | 11% |
Minimum Wages in Czech Republic
| Minimum Wage | |
| Minimum Wage | The minimum wage in Czech Republic is 15200 CZK per month. |
Payroll Cycle in Czech Republic
| Payroll | |
| Payroll Cycle | Monthly |
| 13th Salary | Not mandatory. |
Income Tax Slabs in Czech Republic
| Income Tax | |
| Less than 1,701,168 CZK | 15% |
| More than 1,701,168 CZK | 23% |
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