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Your guide to the employment landscape, working customs and local labor laws in Czech Republic.
Capital
Prague
Currency
Czech Koruna (CZK)
Languages
Czech
GDP per Capita
$33,744.61
Employer Tax
33.8%
Payroll Frequency
Monthly
Czech Republic’s developed economy has strengthened its labor market and maintained the country’s growth. Unemployment rates are forecasted to decrease by 3% in the following year as the country’s trade relations in the European Zone continue to flourish. The Automobile Industry largely attributes to the success of its import and export activities and has extended its market to other continents.
Major economic hubs:
Prague, Brno, Ostrava, Plzeň
Skills in demand:
Local: 1
World: 142
Local: 2
World: 170
Local: 3
World: 363
Local: 4
World: 520
Local: 5
World: 649
Profesia ; Jobs.cz ; jobDNES.cz
2,266,000
Top Local Job Boards:
Top Local Job Boards
Number of LinkedIn users:
Number of LinkedIn users
Top Recruitment Agencies:
The below table mentions the average salary of some common jobs in the Czech Republic:
| Job Title | Average Monthly Salary (CZK) | Average Monthly Salary (USD) |
| Financial Manager | 125,000 | 5,765 |
| General Manager | 110,000 | 5,074 |
| Business Development Manager | 98,600 | 4,548 |
| Financial Analyst | 75,800 | 3,496 |
| Business Analyst | 76,000 | 3,505 |
| Project Manager | 69,700 | 3,214 |
Businesses planning to expand operations in the Czech Republic must be knowledgeable about its labor laws and regulations. In doing so, onboarding becomes seamless, and employees’ welfare will be prioritized.
There is no particular regulation for language use in Czech employment contracts. Employers may use the Czech language, and foreign workers with limited knowledge of the local language may request a translation.
The probation period in the Czech Republic is up to 3 months.
| Date | Name | Type |
| 1 Jan | New Year’s Day | National holiday |
| 1 Jan | Restoration of the Czech Independence Day | National holiday |
| 29 Mar | Good Friday | National holiday |
| 1 Apr | Easter Monday | National holiday |
| 1 May | Labor Day / May Day | National holiday |
| 8 May | Victory in Europe Day | National holiday |
| 5 Jul | Day of Saints Cyril and Methodius | National holiday |
| 6 Jul | Jan Hus Day | National holiday |
| 28 Sep | St. Wenceslas Day | National holiday |
| 28 Oct | Independent Czechoslovak State Day | National holiday |
| 17 Nov | Struggle for Freedom and Democracy Day | National holiday |
| 24 Dec | Christmas Eve | National holiday |
| 25 Dec | Christmas Day | National holiday |
| 26 Dec | St. Stephen’s Day | National holiday |
| Type of Leave | Time Period | Mandatory |
| Annual Leave | 20 days | Yes |
| Sick Leave | Base on severity | Yes |
| Maternity Leave | 28 weeks | Yes |
Payroll cycle
Salaries in the Czech Republic are paid every month.
Minimum wage
The minimum wage in the Czech Republic depends on the industry and the employee’s job role. It ranges from 17,300 CZK to 32,400 CZK.
Overtime pay
The standard working hours in the Czech Republic are 40 hours per week. Employers in the Czech Republic have two options to choose from when compensating their employees for extra work. They may either pay the employees 125% of their regular wage or provide rest hours for the same amount of overtime work.
| Type of Contribution | Rate |
| Social Security | 24.8% |
| Health Insurance | 9% |
| Type of Contribution | Rate |
| Social Security | 6.5% |
| Health Insurance | 4.5% |
| Income Threshold | Rate |
| 0 – 1,867,728 CZK | 15% |
| 1,867,728 CZK and above | 23% |
The Standard VAT in the Czech Republic is 21%.
A 13th-month pay is not mandatory in Czech Republic.
Employees in the Czech Republic are provided with the following benefits during their employment:
In the Czech Republic, the following scenarios can be grounds for an employee to be terminated:
A written notice must be given by either the employer or the employee when terminating an employment contract. Notice period is generally 2 months before the effective date of dismissal.
The Severance Pay in the Czech Republic varies on the reason for dismissing an employee. When employees are dismissed because they are incapable of performing due to health reasons, they are entitled to a month’s pay as a severance pay. When employees are dismissed due to redundancy and company reorganization, their severance pay ranges from one month’s to three months pay, depending on their years of service.
Foreign employees from European Union (EU)countries don’t need a work permit when working in the Czech Republic. On the other hand, employees not belonging to EU nations should secure a work residence permit to work in the country legally. There are two types of work permits:
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Overtime Pay
Minimum Wage
Overtime Pay
Visa and Immigration
By use case
By team
By company size