Hire and pay employees in

Czech Republic, hassle-free

Hire and pay employees in Czech Republic, hassle-free

With Deel, your business can easily hire employees in Czech Republic. No more worrying about local laws, complex tax systems, or managing international payroll. Deel takes care of everything in 150+ countries.

The average onboarding time frame in Czech Republic is 3 days with Deel.

Currency

CZK

Capital

Prague

Official Language

Czech

Payroll Cycle

Monthly

Onboard, pay and manage employees in Czech Republic with Deel.

Usually, to hire in Czech Republic, your business needs an entity. That means a local office, an address registered as a subsidiary, and an account with a local bank. All of this, plus navigating regional benefits, payroll, tax, and HR laws, can take months.

Deel lets you hire employees in Czech Republic quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more. For your existing direct employees, we can manage your entire payroll operation from end-to-end.

Download the Guide

All the necessary benefits for Czech Republic
built right in

Deel allows you to provide localized benefits for employees in Czech Republic within minutes. All in one manageable online dashboard.

  • Public Health Insurance
  • Work From Home Allowance
  • Private Healthcare - Unisure (optional)
  • Private Healthcare - Allianz (optional)

Our quickstart guide to hiring in Czech Republic

Navigate the tabs below to learn everything you need to know about hiring an employee in Czech Republic

Minimum Wage Requirements

The minimum wage is CZK 18,900 per month.

Individual Income Tax

The individual income tax ranges from 15% to 23%. Income tax is calculated according to progressive rates.

Gross Annual Income Tax Rate (%)

up to CZK 131,901

15%

above CZK 131,901

23%

Payroll Cost

The employer cost is generally estimated at 34% of the employee salary.

  • Social Security - 24.8%
  • Public Health Insurance - 9.0%
  • Accident Insurance 0.186%

One-off:
Onboarding medical check: CZK 500-1000
Equipment allowance: CZK 500

Overtime Pay & Maximum Hours

The standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.

Maternity Leave

Employees who have contributed to sickness insurance for at least 270 calendar days in the preceding 2 years are entitled to 28 weeks of paid leave, or 36 weeks in case of births of multiple children. The leave must start 6 weeks before the expected delivery date.

The employee will receive 70% of the assessment base, with a maximum of CZK 49,440 per month, paid by Social Security. The assessment base is calculated from the gross income for the last 12 months divided by the number of calendar days in the given period.

Paternity Leave

Employees who have contributed to sickness insurance for 3 months without interruption preceding paternity leave are entitled to 14 days of paid leave. The leave must start within 6 weeks of the child’s birth.

The employee will receive 70% of the assessment base, paid by Social Security. The assessment base is calculated from the gross income for the last 12 months divided by the number of calendar days in the given period.

Sick Leave

Employees are entitled to paid sick leave for up to 74 days. The first 14 days are paid by the employer, and the following will be covered by Social Security.

Period

Pay

Payer

0 - 14 days

60% of base salary

Employer

15 - 44 days

66% of base salary

Social Security

45 - 74 days

72% of base salary

Social Security

Termination Requirements

Terminations must respect complex rules and the rules of an employee’s employment country. The off-boarding is always handled by the Employer with the primary stakeholders. It may include ad-hoc fees as well as required or recommended steps on specific termination cases.

Terminations in the Czech Republic must be in writing if the contract is terminated by the employer with the minimum notice. For indefinite term contracts, the employer must indicate the reason for the termination of the employment.

Compliant terminations include:

  • Voluntarily by the employee
  • Unilaterally by the employer based on:
    • Unsatisfactory performance
    • Probation period without notice
    • Disciplinary dismissal without notice
  • By the expiration of the contract

For fixed-term contracts, the termination may be without cause.

Notice Period

The minimum notice period is 60 days and can be increased up to 180 days for managerial positions.

Severance for Employees

In the Czech Republic, employees terminated unilaterally by the employer are entitled to severance pay. Severance pay will depend on the length of the employment:

  • 1 year of employment: 1 months’ gross salary
  • 2 years of employment: 2 months’ gross salary
  • 3+ years of employment: 3 months’ gross salary

If the employee considers the termination unfair, they have the right to appeal in court for increased severance.

To protect you from unforeseen financial risks arising from terminations, Deel applies a Severance Accrual to all employment agreements in this country.  Deel has extensive expertise in managing litigation risk globally and our Severance Accrual calculation is based on the prevailing common-law or statutory entitlements and local best practices. In the event your employee resigns or is not entitled to severance, all unused amounts will be returned to you.

Paid Time Off

Full-time employees are entitled to 20 working days, or 160 working hours of paid time off (PTO) a year. PTO accrues monthly 1.67 days or 13.3 working hours per month. Employees are eligible for annual leave after 2 months of work.

For part-time employees, PTO is accrued according to the number of monthly working hours.

Public Holidays

The Czech Republic celebrates 13 public holidays. All public holidays are non-working holidays:

  1. New Year’s Day
  2. Good Friday
  3. Easter Monday
  4. Labour Day
  5. Liberation Day
  6. Day of Slavonic Apostles Cyril and Methodius
  7. Anniversary of the Martyrdom of Jan Hus
  8. St. Wenceslas Day
  9. Independence Day Czechoslovakia 1918
  10. Day of the Struggle for Freedom and Democracy
  11. Christmas Eve
  12. 1st Christmas Day
  13. 2nd Christmas Day

Onboarding

Onboarding takes 3 business days. The employee must be enrolled 1 business day before the start date to the National Insurance.

Employment Contract Details

Contracts must be in Czech and can be bilingual. They must be in writing and signed by both parties. A contract must include:

  • Name
  • Start date
  • Length of the employment
  • Job description
  • Termination conditions

Probation Period

Probation periods are mandatory. The minimum probation period is 60 days. The maximum probation period is 180 days (6 months).
btn_download

Download the complete guide to hiring in Czech Republic

Simply fill out your details below to gain access to our complete guide to hiring in Czech Republic.

Hiring in Czech Republic, hassle-free

With Deel, your business can easily hire employees in Czech Republic with our EOR solution. If you have an entity, our Global Payroll solution takes care of payroll and compliance for your direct employees. Our 250+ in-house experts handle everything from managing local laws, complex tax systems, or your payroll in Czech Republic and 150+ countries.

Group (8)

599 USD

Management fee

Group (9)

34%

Estimate Employer Cost

*of employee salary

Want to learn the cost of hiring an employee in Czech Republic?

View our Employee Cost Calculator

Deel makes growing remote and international teams effortless. Ready to get started?

+

Countries

+

Customers

+

Legal experts

+

Currencies