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Czech Koruna (CZK)
Estimated at 33.8% of employee’s salary
Czech is the official language of Czechia.
The population of Czechia is 10.7 million
To start growing your team in Czechia you must establish a local entity – including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months. Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.
Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.
Hiring in Czechia offers distinct advantages and challenges. On the pro side, Czechia boasts a highly educated workforce with strong technical and engineering skills, supported by its robust educational system. The country’s strategic location in Central Europe facilitates easy access to both Western and Eastern European markets, enhancing logistical efficiency for businesses. Additionally, labour costs in Czechia are competitive compared to Western Europe, providing good value for the quality of talent available. However, the cons include navigating a complex labour code, which can be stringent and detailed, potentially complicating compliance for foreign businesses. Moreover, while Czechia has a skilled workforce, there is growing competition for top talent, particularly in the tech sector, which can lead to recruitment challenges and higher salary demands.
Hiring remotely in Czechia provides several specific benefits. Firstly, it allows access to a highly skilled and educated workforce, particularly in IT and engineering, without the need to establish a physical presence in the country, thereby reducing overhead costs associated with office space and infrastructure. Additionally, remote hiring enables companies to tap into talent from various regions within Czechia, including those outside major cities, where competition for jobs is less intense, potentially resulting in lower salary expectations. The country’s robust internet infrastructure ensures reliable connectivity, facilitating seamless remote work operations. Furthermore, Czech employees often possess strong multilingual capabilities, particularly in English and German, which is advantageous for companies with international operations. This setup also offers greater flexibility in scaling teams up or down based on project needs without the logistical challenges of relocation or local compliance issues.
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| Social Security (covers Pension sickness and unemployment) applied on income above 1,935,552 CZK annually | 24.80% |
| Health Insurance | 9.00% |
Probation Period: Decided contractually, typically between 2 and 3 months, extended to 6 months for leadership roles.
Emerald Technology can onboard employees in Czechia within 48 hours.
In Czechia, restrictive covenants such as non-compete clauses are legally recognized but must be reasonable in scope, duration, and geographic area to be enforceable. They are typically included in employment contracts to protect employers’ legitimate business interests after an employee leaves the company.
In Czechia, permanent residents and citizens are automatically covered by public health insurance, funded by social security contributions. EU citizens living in Czechia are covered, alongside those with long-term residence permits. Employers contribute 9% of the employee’s gross salary and employees contribute 4.5% of their gross salary.
Social Security contributions are mandatory for both employers and employees to fund various benefits such as pensions and health insurance, and it is managed by the Czech Social Security Administration (ČSSZ). Employer contributions are based off their employees’ gross salaries and the total contribution is 33.8%. Employees contribute 11% of their gross salary.
Women are entitled to 28 weeks of maternity leave (extended to 37 weeks in the instance of a multiple birth) with a mandatory minimum of 14 weeks. This leave can commence as early as 8 weeks prior to the due date, but no later than 6 weeks before. Maternity payments, amounting to 70% of the regular salary, commence concurrently with the maternity leave and are disbursed by Social Security. The actual payment is contingent upon the employee having a work history of at least 270 days in the last 24 months, coupled with the employee’s contributions to Social Security. Furthermore, the employee mother cannot be dismissed for a period of 12 months after the date of the childbirth.
New fathers are entitled to a two-week paternal post-natal benefit, where they will receive 70% of their regular salary and requires over 270 days social security contribution. This leave must be taken within 6 weeks of birth.
Mothers have the option to transfer a portion of their maternity leave to the father after the child turns seven weeks old. The father receives parental pay during this transferred leave. Employees are safeguarded against termination during paternity leave.
Employers are responsible for reimbursing employees for the first 14 days of sickness. From the 15th day onward, the government provides sickness pay, which amounts to 60% of the employee’s average pay for the first 30 days covered by the employer. From the 31st to the 60th day, the sickness pay increases to 66%, and from the 61st day onward, it reaches 72%. Employees are entitled to a maximum of 380 calendar days of sick leave.
As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:
When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:
| Length of service | Notice Length |
| Less than 1 year | 2 weeks’ notice |
| 1 to less than 2 years | 1 months’ notice |
| 2 to less than 5 years | 2 months’ notice |
| 5 years or more | 3 months’ notice |
If an employee is made redundant, they are entitled to a payment based on years of continuous service.
| Length of service | Severance |
| 1 year | 1 monthly salary |
| 2 years | 2 monthly salaries |
| More than 2 years | 3 monthly salaries |
The total annual leave duration is determined by multiplying the basic annual leave amount (4 weeks) by the employee’s designated weekly work hours (40 hours) and the number of weeks the worker has been employed in a calendar year. An employee who has completed a full year, working 40 hours per week, is eligible for 160 hours of annual leave. For individuals who haven’t worked the entire year, their entitlement to annual leave is calculated proportionally.
Day of the Independent Czech State / New Year’s Day
Good Friday
Easter Monday
Labor Day
Liberation day
Day of the Slav Apostles Cyril and Methodius
Death of Jan Hus
Czech Statehood Day St. Wenceslas Day
Independent Czechoslovak State Day
Struggle for Freedom and Democracy Day
Christmas Eve
Christmas Day
St Stephen’s Day
17,560 CZK (Czech koruna) per month.
The standard working week in the Czech Republic consists of 40 hours a week, with 8 working hours per day (including a one-hour unpaid lunch break).
Overtime: A maximum of 8 overtime hours per week can be completed by an employee. Overtime hours surpassing the 40-hour weekly limit are remunerated at a rate of 125% of the employee’s regular pay rate. For night or weekend shifts, an extra 10% pay is required, and individuals working on public holidays are entitled to either a 100% pay increase or a compensatory day off.
Employees are entitled to 12 monthly salaries per year and there is no legal obligation for a 13th or 14th salary. However, since 2018 the majority of companies grant their employees a performance-based 13th month salary as a Christmas bonus.
As of 2024, the income tax rates in Czechia are progressive and applied as follows:
15% on income up to 1,704,000 CZK per year 23% on income exceeding 1,704,000 CZK per year. Additionally, there is a solidarity surcharge of 7% on the tax base exceeding 48 times the average annual wage in Czechia. This progressive tax system aims to distribute the tax burden based on income levels.
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