The Czech Republic offers a skilled, cost-competitive Central European workforce and codified labour rules. All-in employer cost runs around 1.34x the gross salary. Here is what to know before your first Czech hire.
Employment runs under the Labour Code, with written contracts, regulated working time, and mandatory social and health insurance. Disguised employment (the 'švarcsystém') is expressly prohibited.
The statutory minimum is about CZK 18,900 per month in 2024*, revised annually, with graded minimums by job level.
Monthly payroll. There is no statutory 13th salary; bonuses are contractual.
There are around 13 public holidays a year, all paid.
A written contract is required. Probation is up to three months (six for managers), with free termination during it.
Employer social security and health insurance add about 33.8% on top of gross salary.
The social-security contribution applies up to an annual cap, so very high earners carry a smaller effective percentage; health insurance is uncapped.
Employees pay their own social and health share plus a 15% (23% above a threshold) income tax, withheld at source. Withholding is the employer's responsibility, which under EOR means ours.
A statutory minimum of four weeks (20 days) a year, with many employers adding a fifth week.
28 weeks of maternity leave (37 for multiples), paid through sickness insurance.
Parental leave until the child turns three (up to four), with a state parental allowance.
The employer pays for the first 14 days of illness, after which sickness insurance takes over.
Notice is at least two months and must rest on a statutory ground. Dismissals can be challenged in court.
Statutory severance of one to three months' pay applies to organisational (redundancy) dismissals, scaled by tenure.
Up to three months (six for managers), with immediate termination allowed during it.
Disguised employment (švarcsystém) is illegal; a contractor working like an employee can trigger back contributions and fines.
*All figures are estimates from public sources (2025-26), pending ops verification - same basis as the EOR cost calculator. Not tax or legal advice.
Compliant Czech employment contract, payroll, social and health insurance, and benefits, handled. One invoice, flat $399 per month.