How to hire and pay employees in Czech Republic
With Instahirin, your business can easily hire employees in Czech Republic. No more worrying about local laws, complex tax systems, or managing international payroll.
Before hiring
EMPLOYEES IN The Czech Republic
Before hiring employees in the Czech Republic, one key thing employers should be aware of is compliance with the EU’s General Data Protection Regulation (GDPR). Employers must ensure that employee personal data is collected, processed, and stored lawfully and transparently. Particular attention must be given to obtaining consent, applying data minimization principles, and ensuring secure handling especially for any cross-border data transfers.
Another crucial consideration is the Czech Republic’s Labour Code and mandatory benefits system. Employers are required to contribute to social security, which includes health insurance, pension insurance, and unemployment insurance. Employees are entitled to paid annual leave (a minimum of 4 weeks), sick leave, public holidays, maternity/paternity leave, and parental leave. Employment contracts must be in writing and must comply with the Czech Labour Code, which also governs working hours, rest periods, termination procedures, and notice periods.
At a glance
CURRENCY
CZK
OFFICIAL LANGUAGE
Czech
PAYROLL FREQUENCY
Monthly
EMPLOYER TAXES
33.8%
of gross salary
13th / 14th SALARY
N/A
Good to know
The Czech Republic provides universal healthcare through a mandatory public health insurance system funded by both employers and employees. Employers contribute 9% and employees 4.5% of gross salary to health insurance funds. The system covers most medical services, hospital care, and prescriptions. While public healthcare is the norm, many employers also offer private health insurance or supplemental packages for faster access and premium services.
The standard workweek is 40 hours, usually 8 hours per day over 5 days. Overtime is allowed and must be compensated with either pay (at least 125% of normal wage) or time off. Employees are entitled to 4 weeks (20 working days) of paid annual leave, with some employers offering more. There are also 13–15 public holidays per year, depending on the calendar.
Labor laws in Czech Republic
Working hours and overtime
The standard working hours are 8 hours per day, 40 hours per week. The standard workweek is from Monday to Friday.
Employment contracts
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
Probationary period
Probation periods are mandatory. The minimum probation period is 60 days. The maximum probation period is 180 days (6 months).
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Benefits and leave in Czech Republic
Annual leave in Czech Republic
In the Czech Republic, employees are entitled to at least 20 working days (4 weeks) of paid annual leave per year. At least two weeks must be taken continuously, unless the employee agrees otherwise. Unused leave can be carried over and must be paid out upon termination.
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.
Parental 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.
Holidays
The Czech Republic celebrates 13 public holidays. All public holidays are non-working holidays.
Employer tax
In the Czech Republic, employers contribute 33.8% of an employee’s gross salary 24.8% for social insurance and 9% for health insurance. These contributions fund pensions, sickness, unemployment, and medical care.
Individual tax
In the Czech Republic, resident individuals pay 15% income tax on earnings up to CZK 1.68 million, and 23% on income above that threshold. Employees also contribute about 11.6% to social and health insurance, resulting in a total personal tax burden of approximately 26–27%.
Termination in Czech Republic
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
- By the expiration of the contract
Notice period
The minimum notice period is 60 days and can be increased up to 180 days for managerial positions.
Start hiring employees in
Czech Republic
Setting up a business entity in every country where you want to hire isn’t scalable it’s time-consuming, expensive, and legally complex. In the Czech Republic, employers must comply with detailed labor laws, mandatory employee benefits, personal income tax withholding, and social security contributions. Navigating employment contracts, working time regulations, and payroll reporting requires in-depth local knowledge. Manual management of HR and compliance processes increases the risk of legal issues and operational inefficiencies.
With InstaHirin, you can easily manage HR, payroll, and automate compliance in Czech Republic and 180+ countries all from one user-friendly platform so you can hire quickly and confidently without setting up a local entity.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While InstaHirin yster strives to provide current and accurate information, InstaHirin makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
