Hire & Pay Employees in Czech Republic 🇨🇿

With PamGro, your business can easily hire employees in Czech Republic. No more worrying about local laws, complex tax systems, or managing international payroll.

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CapitalPrague

Currency (CZK)

LanguagesCzech

GDP per Capita$43,837

Payroll FrequencyMonthly

Employer Tax33.8%

Overview

Traverse Czech Republic's Recruitment Market with ease.

Establishing a presence in the Czech Republic offers numerous benefits for both businesses and employees. The country’s central location in Europe provides convenient access to major markets, facilitated by modern transportation networks.

Moreover, the region enjoys political stability, low unemployment rates, and promising economic prospects, making it an attractive destination for foreign investment. Lastly, the country’s rich culture, historical landmarks, and welcoming atmosphere allure expatriates seeking diverse experiences and opportunities.

Benefits of hiring in Sweden

Additionally, the Czech Republic boasts a highly educated workforce, particularly excelling in STEM fields, thanks to its esteemed universities and technical institutions.

Working in the Czech Republic offers a harmonious blend of career advancement and lifestyle contentment, resulting in a truly fulfilling environment.

Challenges when expanding into Czech Republic

Cultural Nuances

Employment Contracts in Czech Republic

Employment Agreements

According to Czech law, employers must issue formal employment contracts containing detailed information about each role, such as salary, benefits, working hours, and leave policies. These documents must be written in Czech and expressed in Czech koruna currency.

Pamgro’s local specialists help you create solid employment agreements that protect both parties and conform to regional norms.

Working Hours

The standard working hours in the Czech Republic consist of 40 hours per week. Czechs typically have a tendency to commence work earlier than many other cultures, often starting at 7am. Nevertheless, it is important to note that this early start is not obligatory by law, and numerous foreign-owned companies do not enforce it. Any hours worked beyond 40 require premium pay at a minimum of 125% above base wages.

Overtime Pay

Overtime is capped at eight hours a week or 150 hours a year and is paid at 125% of the standard rate.

Minimum Wages and Salaries

Currently, the Czech Republic imposes a minimum wage of 14,600 CZK per month (based on 40-hour workweek). Various factors could result in higher minima for select roles.

Termination Requirements/ Severance Pay

For both fixed-term and open-ended positions, employers and employees must give a minimum 60-day notice prior to termination. Exceptions occur during probation periods, lasting up to three months.

Severance payments arise when dismissals lack valid reasons. Required amounts depend on length of service:

Under 1 year	1 month’s salary
Between 1-2 years	2 months’ salary
More than 2 years	3 months’ salary

Ensure hassle-free terminations and fair severance package negotiations with Pamgro’s Czech Republic EOR supporting your efforts.

Everything you need to hire in Czech Republic

Leave Policy

Vacation Leave:

All employees in the Czech Republic receive at least 20 days of annual paid vacation. Additional leave days might be granted depending on individual arrangements and collective bargaining agreements.

Maternity Leave:

Generous provisions cater specifically to female employees taking maternity leave. A minimum of 28 weeks is permissible, extendable to 37 weeks in case of multiple births. Expectant mothers enjoy approximately 70% of their customary income throughout this duration. Extraordinary monetary aid supplements state-provided funds.

Sick Leave:

No obligation exists for employers to compensate employees during initial absences due to illness. From the fourth day forward, partial remuneration applies until the 21st day. Subsequent absences fall under government funding umbrella for up to 380 days.

Statutory Time Off

12 official public holidays exist in the Czech Republic, although not every organization grants them all.

Below is a summary of annual celebrations:

New Year’s Day (January 1) – Celebrates the beginning of the Gregorian calendar year.
Good Friday (which varies each year in April) – Commemorates Jesus Christ’s crucifixion.
Easter Monday (also varying in April) – Marks resurrection after Christian tradition.
Labor Day (May 1) – Honors worker rights and achievements.
Ascension Day (which fluctuates in May) –
Whit Monday (either in May or June)
Corpus Christi (June 11)
Day of German Unity (October 3)
Day of Reformation (October 31)
All Saints Day (November 1)
Christmas Day (December 25)
St. Stephen’s Day (December 26)