Payroll and Benefits Guide - Czech Republic

Czech Republic
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Currency

Czech Koruna
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Capital

Prague
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Employer Taxes

33.80%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

It was once part of the country Czechoslovakiauntil January 1, 1993 where it split into now Czech Republic and Slovakia.

Czech Republic has the highest amount of beer consumed per capita. The country is also known for the Pilsner beer.

The country’s literary rate is 99.83% making it sixth most literate in the world.

Czech Republic is one of only few landlocked countries.

It houses one of the largest densities of architectural history.

The sugar cube was invented in a small town of Dačice in 1843.

Czech -Republic

Contributions

Employee Payroll Tax

Social Security/Pension6.50%
Health Insurance4.50%

Employer Payroll Tax

Social Security / Pension24.80%
Health Insurance9.00%
Sickness2.10%
Unemployment1.20%

Payroll

Payroll Cycle

Payroll in Czech Republic typically runs on a monthly cycle.

13th Salary

Although it is not required, paying employees a 13th salary as a n incentive for exemplary work.

Work Hours and Week

The country has a 40-hour, five-day work week with nine-hour days

Overtime

Employees can have up to 150 hours of overtime per year or an additional eight hours per week at a pay rate of 125.00% of the normal rate.
Czech -Republic

Leave

Paid Time Off

Employees are given 20 days of paid leave after just 60 days of work with one employer. More days could be added depending on contracts.

Public Holidays

There are 13 public holidays in Czech Republic.

Sick Days

With the requirement of a medical certificate, employees are paid 60.00% of their rate for the first 14 days by their employers. The succeeding days are paid by the government.

Maternity Leave

Pregnant employees are given 28 weeks of maternity leave starting at eight weeks before the due date. It could be extended if more than one baby is born.

Paternity Leave

Starting at six weeks since a child’s birth, two weeks of paternity leave are given to fathers.

Parental Leave

Any employee may request leave from the end of maternity/paternity leave until the child reaches age 4.

Other Leave(s)

Employees are given three days of paid time off in the event of a death of an immediate family member.

Caregivers of children under 10 years or sick family members are given nine days of leave.

Being drafted into military service are also paid leave.

Leave for jury duty is also granted.

 

 

Termination

Termination Process

In the Czech Republic, termination procedures are generally followed and notice periods are necessary unless an employer can show good cause to terminate an employee immediately

Notice Period

The notice period must be at least two months long and it must begin on the first of the month after the notice is sent. Upon written agreement, this may be extended.

Severance Pay

The lowest amount is a month worth of pay at minimum of a year of work and could go up to 3 months of gross salary.

Probation Period

Probation Period

The probationary period in the Czech Republic is outlined in the employment contract and is based on the kind of role.

Immigration

Any foreign national entering Czech Republic to work must have both Schengen C Visa and an Employee Card .

VAT

The commonly used standard rate of VAT in Czech Republic in 21.00%