Employee Cost Calculator - Czech Republic
[Updated 2025]

Step 1: Choose the Gross Salary Payment Frequency

Select the Monthly or Annual frequency to align with your payroll schedule.

Step 2: Enter the gross salary amount

Enter the amount for the role based on the selected payment frequency.

Step 3: Enter Your Details

Provide your Name, Phone Number, and Email Address to receive your personalized report.

Step 4: Get the details 

Click “Get Details” to generate a detailed breakdown of costs, including:

• Monthly Gross Amount 

• CSG Basic (Sociale Generalisee) 
• Employer Social Security Contribution 
• Employer Health Insurance 
• Monthly CTC Amount 

Note: You can calculate the cost to hire an employee in Czech monthly or annually in real-time by selecting an option or adjusting the value. The free employee expense calculator will instantly display the updated amount.

Overview

In the Czech Republic, hiring employees involves additional costs beyond the gross salary, primarily due to mandatory social security and health insurance contributions. Here’s an overview of these employer costs.

Employer’s Perspective

Note: These figures are based on the latest regulations. Additional costs may apply depending on the employment contract and benefits provided.

Employee’s Perspective

Assumptions:

• Gross Salary: CZK 40,000/Month used as an example.
• Social Security Contribution: Employer pays 24.8%, Employee pays 6.5%.
• Health Insurance Contribution: Employer pays 9%, Employee pays 4.5%.
• Income Tax Rate: Flat 15% on income up to CZK 1,935,552 annually; 23% for higher incomes.

Note: These figures are based on the latest regulations. Additional costs may apply depending on the employment contract and benefits provided.

Hiring an employee in the Czech Republic involves more than just paying their gross salary. Employers are required to cover additional costs, including contributions to social security and health insurance.

Employer Contributions

• Social Security Contribution: 24.8% of the gross salary.
• Health Insurance Contribution: 9% of gross salary.

Additional Costs to Consider:

• Annual Leave and Bonuses: Employees are entitled to paid leave and performance-related bonuses.
• Overtime Pay: Employees working beyond standard hours are eligible for overtime payments.
• Meal Vouchers: Many employers provide meal allowances as an additional benefit.

The minimum gross salary for full-time employees in the Czech Republic serves as a baseline for compensation. As of 2025, the national minimum wage is set at CZK 20,800 per month. Employers must account for additional costs beyond the gross salary, including mandatory contributions and levies.

Employer’s Perspective

Note: These figures are based on the latest 2025 regulations. Additional costs may apply depending on the employment contract and benefits provided.

Employer Taxation in the Czech Republic 

Employee Taxation in the Czech Republic

Hiring employees in the Czech Republic can be a smooth process when following the right steps and complying with local regulations. Here are the two main ways to hire talent:

1. Setting Up a Subsidiary Entity

• Businesses planning a long-term presence in the Czech Republic may choose to establish a legal entity.
• The process involves company registration, tax registration, and setting up payroll compliance systems.

2. Using an Employer of Record (EOR) Service

Partnering with an EOR like PamGro simplifies the hiring process in Czech Republic by eliminating the need to establish a local entity. The EOR manages payroll, compliance, employee benefits, and more, allowing you to focus on scaling your business.

• Comprehensive Support: PamGro handles every aspect of the employee lifecycle, from hiring to termination.
• Compliance Expertise: Our team ensures full adherence to Czech labor laws and reduces administrative burdens.
• Streamlined Process: PamGro simplifies hiring in Australia, saving you time, resources, and unnecessary legal complexities.

Expanding your business into the Czech Republic is seamless with Employer of Record (EOR) services. An EOR solution enables you to hire and manage employees without establishing a legal entity, saving you time and resources. With PamGro, you can streamline compliance, payroll, and administrative tasks while focusing on growth.

Below are the general terms of our EOR services:

With PamGro’s local compliance expertise, we ensure full adherence to Czech labor laws while providing seamless employee management.

Ready to expand in Czech Republic? Partner with PamGro today and join over 100 companies that have simplified global expansion with our services.