Czech Republic Payroll Guide

The standard pay frequency is monthly. Employees enjoy a flat rate of income tax, which currently sits at 15% with Employer Taxes at approximately 32%. Included within the Employer Tax are contributions towards Pension, Sickness & Unemployment Funds and Health Insurance.

A working week in the Czech Republic consists of 40 hours. This is typically 8 hours per day but cannot exceed 12 hours. Overtime requires consent from both parties and must not surpass 8 hours per week and 150 hours per year.

Maternity Leave entitlement in the Czech Republic is 28 weeks, with a minimum of 14 weeks that must be taken. Maternity Leave can start as early as 8 weeks before the due date but must be taken at least 6 weeks prior. For those who have multiple births, an extended Maternity Leave of 37 weeks is available.

As with many regions, a process must be followed in order to dismiss an employee in a compliant manner. We recommend speaking with one of our local Employment Experts prior to engaging in a dismissal. Typically, an employee is entitled to a Severance Payment which varies based on the length of their service: in most cases, it is 1 month’s salary for 1 year of service, 2 months’ salary for 2 years of service and 3 months’ salary for 3 years or more.