Hire employees and contractors in Czech Republic
Outstaffer’s guide to employing in Czech Republic.
Facts & stats
The Czech Republic, or Czechia, is located in central Europe and is a member of the European Union. The country is famous for its more than 2,000 castles, especially Prague Castle. The Czech Republic has a very large expat community, thanks in part to its reputation as one of the safest countries in in the world and its high standard of living.
- Capital city
- Prague
- Currency
- Czech koruna (Kč, CZK)
- Official Languages
- Czech
- Population size
- 10,693,939
- Ease of doing business
- Very Easy
- Cost of living index
- $$ (67 of 139 nations)
- Payroll frequency
- Monthly
- VAT - standard rate
- 21%
- GDP - real growth rate
- 2.3%
Tech Talent in Czech Republic
The Czech Republic is emerging as a noteworthy hub for tech talent in Central Europe. With a strong emphasis on education, particularly in the fields of science and technology, the country has cultivated a skilled workforce of software developers, engineers, and IT professionals. Prague, in particular, has gained recognition as a burgeoning tech hub, attracting startups and established tech companies alike. The favorable cost of living and a growing number of co-working spaces have further fueled the tech scene's growth. Czech tech talent is known for its innovation and adaptability, contributing to the country's position as a competitive player in the global tech industry.
Grow your team in Czech Republic with Outstaffer
Looking to employ workers in Czech Republic? Companies hiring in Czech Republic must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Outstaffer can employ your team in Czech Republic on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Romanian team. You can also pay contractors now in Romania with Outstaffer.
Minimum wage
In the Czech Republic, the minimum wage depends on the type of work performed. The lowest wage is CZK 15,200, while the highest minimum wage is CZK 30,400. Outstaffer can help you understand the specific wage requirements for your employees in the Czech Republic.
Payroll cycle
Salaries must be paid on a monthly basis on a consistent date set by the employer.
Onboarding time
We can help you get a new employee started in Czech Republic fast. The minimum onboarding time we need is only 5 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Outstaffer platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Outstaffer has a payroll cut-off date of the 10th of the month unless otherwise specified.
Employing in Czech Republic
Looking to employ workers in Czech Republic? Companies hiring in Czech Republic must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off.
To employ workers in Czech Republic, contact Outstaffer to learn more about your options.
Risks of misclassification
Public holidays
Jan 1
New Year's Day (Nový rok)
May 8
Liberation Day (Den vítězství)
Nov 17
Struggle for Freedom and Democracy Day (Den boje za svobodu a demokracii)
Apr 7
Good Friday (Velký pátek)
Jul 5
Saints Cyril and Methodius Day (Den slovanských věrozvěstů Cyrila a Metoděje)
Dec 24
Christmas Eve (Štědrý den)
Apr 9
Easter (Velikonoce)
Jul 6
Jan Hus Day (Den Jana Husa)
Dec 25
Christmas Day (První svátek vánoční)
Apr 10
Easter Monday (Velikonoční pondělí)
Dec 28
Saint Wenceslas Day, Statehood Day (Den české státnosti)
Dec 26
Saint Stephen's Day (Druhý svátek vánoční)
May 1
Labour Day (Svátek práce)
Oct 28
Independent Czechoslovak State Day (Den vzniku samostatného československého státu)
Competitive benefits package in Czech Republic
Our benefits packages in Czech Republic are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Private health insurance
Supplemental dental insurance
Supplementary vision insurance
Supplemental maternity insurance
Supplemental screening & vaccine insurance
Additional paid holidays
Flexible work schedule
Employee engagement funds
Taxes in Czech Republic
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Czech Republic.
Employer
- 24.8% - Social Security (Max of 1,701,168 CZK/year)
- 9% - Health Insurance
- 33.8% - Total Cost of Employment
Employee payroll taxes
- 6.5% - Social Security
- 4.5% - Health Insurance
Employee income tax
- New in 2021:
- 15% (Gross income up to 1,701,168 CZK)
- 23% (Gross income above 1,701,168 CZK)
Types of leave
Statutory leave
Employees in the Czech Republic are entitled to four weeks of paid leave each year in addition to 13 paid public holidays. Employers commonly offer five weeks of PTO to keep their benefits packages competitive. When a holiday falls on a Saturday or Sunday, employers in the Czech Republic are not required to provide employees with paid time off during the week.
Pregnancy and maternity leave
Maternity leave in the Czech Republic covers 70% of the mother’s average gross salary for up to 28 weeks, beginning six to eight weeks prior to the due date. Maternity leave may extend to 37 weeks for mothers who give birth to multiple children at once. Maternity leave cannot be shorter than 14 weeks and must extend to at least six weeks following birth.
Payments for maternity and paternity leave in the Czech Republic come out of government social security funding.
Partner/Paternity leave
Paternity leave in the Czech Republic covers 70% of the father’s average gross salary for up to seven days. Paternity leave must be used within the first six weeks of childbirth as a single block.
Parents in the Czech Republic are also eligible to take parental leave until the child’s reaches three years of age. Parents may draw up to 300,000 CZK total as a parental allowance during this time period, or 450,000 CZK in the case of multiple births. Parental leave is available to people who are registered as partners with the Czech government.
Adopting couples receive the same benefits.
Employment termination
Termination process
In the Czech Republic, employers must provide written notice with a stated reason to terminate an employee. Employees who quit on their own are not required to provide reasoning for the decision.
Notice period
Employers in the Czech Republic must provide at least two months’ notice to terminate an employee. The notice period does not officially begin until the first day of the next month: so, an employee served with notice of termination on March 15 would not be fully terminated until June 1.
Probation periods
Probationary periods in the Czech Republic are capped at three months. However, this period may be extended to six months for executive officers.
Severance pay
Severance pay in the Czech Republic depends on the amount of time the employee has worked for the company. Employees who have worked less than one year for an employer are not entitled to severance pay.
- Termination of employment within the first year: severance pay amounts to one month's payment
- Termination of employment after two years: severance pay amounts to two month's payment
- Termination of employment after three years: severance pay amounts to three months’ payment
Get started with Outstaffer in three easy steps
01. Book a call or sign up
Book a call with one of our Solutions Managers or create your free account. It’s quick, easy, and you’ll be ready to get started in minutes.
02. Add your people
From new hires to your existing team, onboard them seamlessly with our simple-to-use self-serve platform
03. Dedicated onboarding
Our dedicated team is here to guide you every step of the way ensuring you’re confident, supported, and set up for success.