Country Payroll Guide Czech Republic
We deliver secure, compliant, accurate and touchless global payroll for Czech Republic.
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.
