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.
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.
*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.