Country Payroll Guide Czech Republic

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Prague-CzechRepublic

Key Facts

Capital
Prague
Date format
dd.mm.yyyy
Currency
Czech Koruna (CZK)
VAT
the standard rate is 21%

Contributions

Employers

Pension
Pension - 21.5%
Sickness
Sickness - 2.1%
Health Insurance
Health Insurance - 9%
Unemployment
Unemployment - 1.2%
Total Employment Cost
Total Employment Cost - 33.8%

Employees

Pension
Pension - 6.5%
Health Insurance
Health Insurance - 4.5%
Total Employee Cost
Total Employee Cost - 11%

Minimum Wage

Minimum Wage
The minimum wage in Czech Republic is 15200 CZK per month.

Payroll

Payroll Cycle
Monthly
13th Salary

Not mandatory.

Income Tax

Employee Income Tax (1)
Less than 1,701,168 CZK - 15%
Employee Income Tax (2)
More than 1,701,168 CZK - 23%

Working Hours

General Working Hours

40 hours per week.

Overtime

Max 150 hours per year, 125% wage.

Leave

Paid Time Off

4 weeks per year.

Public Holidays

13 public holidays.

Sick Days

First 14 days employee to receive 60% of regular payment.

Maternity Leave

37 weeks; 70% of regular payment to employee.

Paternity Leave

7 days, 3 of them following the birth.

Termination

Termination Process

2 months starting the day following the notice letter being sent; a cause isn’t mandatory.

Notice Period

2 months.

Severance Pay

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.

Probation Period

3 months.

Visa

Employment Visa

Required for long term – foreigners to work longer than 90 days.