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Hiring in the Czech Republic allows companies to access a highly educated workforce with strong capabilities in engineering, manufacturing, IT, automotive, and shared services. The country is a major talent hub in Central Europe, known for technical expertise and competitive labor costs compared to Western Europe.
Employment in the Czech Republic is governed by the Labour Code, which regulates contracts, wages, working hours, termination, and employee protections. Employers hiring locally must comply with national labor laws and EU employment standards. Many companies use job portals, recruitment agencies, and AI-driven hiring platforms to streamline recruitment while remaining compliant.
Facts & Stats
Key Employment Rules Employers Must Know
Employment relationships in the Czech Republic are regulated by the Labour Code. Employment contracts must be in writing and clearly define role, salary, and working conditions. Probation periods are permitted for up to 3 months for most roles.
Employees are entitled to a minimum of 20 days of paid annual leave per year, excluding public holidays. Termination must follow statutory notice rules or compensation must be provided in lieu of notice.
The standard working week in the Czech Republic is 40 hours, typically spread across five working days. Certain industries may operate shorter working hours based on collective agreements.
Overtime is regulated and generally limited to 150 hours per year unless additional overtime is agreed. Overtime work must be compensated with additional pay of at least 25% above the regular wage or with time off in lieu.
The Czech Republic has a nationally defined minimum wage, currently set at CZK 18,900 per month for full-time employees. Employers must ensure wages meet or exceed this threshold.
Overview of Employer, Employee, and Individual Taxation in the Czech Republic
Approximately 11%
Employees contribute around 11% of their gross salary to social security and health insurance, which is automatically deducted from wages.
Approximately 33.8%
Employers contribute approximately 33.8% of an employee’s gross salary toward social security and health insurance. These contributions fund pensions, healthcare, and unemployment benefits.
15% and 23%
The Czech Republic applies a flat personal income tax rate of 15% on most income, with a higher 23% rate applying to income above the statutory threshold.
The Czech Republic operates a mandatory public pension system funded through employer and employee social security contributions. Pension eligibility depends on age and contribution history.
Employment termination in the Czech Republic must comply with the Labour Code. Employers are required to provide valid grounds for termination and adhere to statutory notice periods. The standard notice period is two months for most employees. Immediate termination is only permitted in cases of serious misconduct. Severance pay may apply depending on the reason for termination and length of service.
In the Czech Republic, the statutory notice period is two months and applies equally to employers and employees. The notice period begins on the first day of the month following the delivery of the termination notice. Longer notice periods may be agreed in employment contracts.
Severance pay in the Czech Republic depends on the reason for termination and the employee’s length of service. Employees are typically entitled to one to three months’ salary when employment ends due to redundancy or organizational changes.
Employees in the Czech Republic are entitled to a minimum of 20 days of paid annual leave for full-time employment, excluding public holidays. Paid sick leave is available, with employers covering the initial period of absence before social security benefits apply. Maternity leave can last up to 28 weeks and is compensated through social security, while paternity leave is also available and partially paid through the social insurance system. Employees are additionally entitled to paid bereavement leave, typically ranging from 1 to 5 days depending on the relationship and circumstances.
January 1
New Year’s Day
May 1
Labour Day
July 5
Saints Cyril and Methodius Day
July 6
Jan Hus Day
October 28
Independent Czechoslovak State Day
December 25
Christmas Day
Frequently asked questions
What makes Iris helpful for hiring in the Czech Republic?
Iris helps employers source and evaluate candidates efficiently while supporting compliance with Czech labor laws and EU employment standards.
Is it mandatory to hire Czech nationals?
No. Employers can hire both Czech and foreign nationals. Non-EU employees must have valid work permits, while EU citizens can work without additional authorization.
How is severance calculated in the Czech Republic?
Severance depends on the reason for termination and length of service. Employees may be entitled to severance pay, typically ranging from one to three months’ salary.
What are the official working hours in the Czech Republic?
The standard working week is 40 hours, usually spread across five days.
Do employees in the Czech Republic receive a pension?
Yes. Employees are covered by a mandatory public pension system funded through employer and employee contributions.
