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

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%

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.

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.

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.

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.

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.

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:

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

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