The Czech Republic is a landlocked country in Europe bordered by Austria, Germany, Poland, and Slovakia. Historically known as Bohemia, the country has a high-income economy with free education and free healthcare. The Czech Republic has a a reputation for being one of the safest countries in the world with a large community of expats.
Pregnant employees receive 70% of the mother’s average salary for up to 28 weeks, starting around 6 weeks before the due date. The leave can’t be less than 14 weeks and needs to extend to at least 6 weeks after the birth. Paternity leave is paid at 70% of the average salary for 2 weeks after the birth. These leaves are paid for by social security.
Parents can also take parental leave before the child turns 3 years old, with up to CZK 300,000 as a parental allowance. Couples who are adopting receive the same benefits.
Employees can receive 14 days of sick leave paid at 60% of their salary from the employer. From day 15 onwards the government covers the wages, but employers are required to collect medical certificates from the employee and make reports to the authorities.
The Czech Republic has 13 public holidays, and full-time employees receive 20 days of paid time off each year, accrued monthly at 1.67 days per month. This leave is eligible after 2 months of working at the company.
The minimum wage depends on the type of work performed, and the average minimum wage is CZK 17,300 per month. Working hours are 40 hours per week, with a maximum of 9 hours per day. Overtime is capped at 150 hours per year, paid at 125% of the regular salary.
Employers in Czech Republic need to provide written notice with a reason for the termination of an employee. If the employee quits on their own they do not need to provide reasoning for their decision.
Employers need to provide at least 2 months notice to terminate an employee contract, which does not begin until the first day of the next month. So if the notice was served on April 7, the termination would not officially happen until the end of June.
Severance pay depends on how long the employee has worked at the company. Employees who have worked less than one year for an employer are not entitled to severance pay.
There is no legal mandate to pay a 13th-month salary in Czech Republic, but many employers choose to pay a 13th-month bonus which is usually performance-based.
★ 24.8% - Social Security & Pension
★ 1.2% - Unemployment
★ 9% - Health Insurance
★ 2.1% - Sickness Insurance
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Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.