Hire employees in Czech Republic. No entity needed.
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.
Czech Republic also treats contractors differently than full-time employees, so misclassifying a contractor could lead to fines. Deel lets you hire employees in Czech Republic quickly, easily, and compliantly. We even automate tax document collection, payroll, benefits, and more.
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)
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
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 1,701,168||15%|
|Over CZK 1,701,168||23%|
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%
Overtime Pay & Maximum Hours
Pregnant employees who have worked for 21 consecutive days are entitled to 28 weeks of paid leave. Four weeks must be taken before the child's birth. The remaining days must be taken after the birth.
The employee will receive 70% of their salary during this period. Social Security will be responsible for this pay.
The employee can’t extend leave. Parental leave is available after maternity leave.
Employees are entitled to 7 calendar days of paid paternity leave that must be taken after the child's birth. The employee will receive 70% of the salary during this period, and Social Security will be responsible for this pay.
The employee can’t extend paternity leave. Parental leave is available after maternity leave.
Employees are entitled to 43 months of parental leave. Both parents can decide how to distribute the time off, which should be taken after paternity and maternity leave. Either parent can take parental leave.
However, it cannot be taken at the same time. Social Security will pay a maximum of CZK 300,000 during this period.
Parental leave can't be extended.
Employees are entitled to paid sick leave for up to 380 days. The first 14 days are paid by the employer, and the following will be covered by Social Security.
|0 - 14 days||100% of base salary||Employer|
|15 - 380 days||70% of base salary||Social Security|
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.
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.
The Czech Republic celebrates 13 public holidays. All public holidays are non-working holidays:
- New Year’s Day
- Good Friday
- Easter Monday
- Labour Day
- Liberation Day
- Day of Slavonic Apostles Cyril and Methodius
- Anniversary of the Martyrdom of Jan Hus
- St. Wenceslas Day
- Independence Day Czechoslovakia 1918
- Day of the Struggle for Freedom and Democracy
- Christmas Eve
- 1st Christmas Day
- 2nd Christmas Day
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:
- Start date
- Length of the employment
- Job description
- Termination conditions
Hiring 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.
Estimate Employer Cost
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