Indefinite-term contracts are the default and apply automatically whenever a fixed term is not expressly agreed in writing.
May last up to 3 years and be repeated or extended no more than twice — a maximum of 9 consecutive years with the same employer.
Standard working time is 40 hrs/week; overtime capped at 8 hrs/week on average (150 hrs/year if unilaterally ordered), paid with at least a 25% premium or compensatory time off.
Since the June 2025 'flexible amendment', probation may be up to 4 months (8 for managerial employees), extendable by written agreement within those limits, and cannot exceed half of a fixed-term contract's duration.
No statutory 13th or 14th salary; annual or semi-annual bonuses are a voluntary benefit some employers offer by contract or collective agreement.
Job titles generally unregulated, but regulated professions (healthcare, law, engineering) require prescribed qualifications, and 'managerial employee' status affects probation and other terms.
Employers pay 24.8% social security (21.5% pension, 2.1% sickness, 1.2% unemployment) plus 9% health insurance = 33.8%; the social security base is capped at 48x the average wage (CZK 2,350,416 in 2026), health insurance uncapped.
Employees pay 7.1% social security (6.5% pension + 0.6% sickness, reintroduced 2024) plus 4.5% health insurance = 11.6%; personal income tax separately at 15% and 23% above 36x the average wage.
In addition to statutory leave, employees are entitled to the following statutory benefits:
Czech payroll contributions fund the state social insurance system administered by the Czech Social Security Administration (CSSA) and public health insurers:
All employers must carry statutory liability insurance for work injuries and occupational diseases, provided through Kooperativa (or ČPP for pre-1993 policies), with premiums set by decree according to the sector's risk class. Since the June 2025 Labour Code amendment, an employee terminated for work-injury-related unfitness receives a one-time payment of 12x average monthly earnings through this insurance.
Statutory severance applies to dismissals for organizational reasons (redundancy, closure, relocation): 1 month's average earnings for less than 1 year of service, 2 months for 1-2 years, and 3 months for 2+ years. Where employment ends due to a work injury or occupational disease, the employee is entitled to 12x average monthly earnings, paid via the employer's statutory liability insurance under the 2025 amendment.
A 13th salary is not required by Czech law. Some employers voluntarily pay annual or semi-annual bonuses under employment contracts, internal policies, or collective agreements, but these are discretionary benefits rather than statutory entitlements.
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. RemoFirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), Australian Dollars (AUD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees are paid on time. To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
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.
Whenever the employee or employer has a question about, or anything else related to international employment, they can speak with our customer support team to get answers from our team of experts.