The Czech Republic — also known as Czechia — is known for its history, culture, architectural landmarks like Charles Bridge, and more than 2,000 castles, including Prague Castle.
The country is also home to a highly educated workforce and a fast-growing tech sector, and it boasts competitive labor costs, making it an excellent choice for companies hiring internationally.
Whether you're expanding into Europe or building a remote global team, hiring Czech residents can bring valuable talent to your business.
Key takeaways:
- The Czech Republic is home to a highly educated, English-speaking workforce, especially in IT and engineering.
- The country's labor costs are lower than in many parts of Western Europe.
- Employees are entitled to paid vacation days, generous sick leave, and maternity and paternity benefits.
Advantages of Hiring in the Czech Republic
There are numerous reasons why companies hire employees in the Czech Republic.
For one, 50% of the population speaks English, making integrating Czech workers into international teams easy.
The country's strong focus on technical education has also led to a large talent pool in competitive fields like IT, engineering, and manufacturing.
In addition to its skilled talent pool, the Czech Republic catches the eye of many international companies because of its central location, giving them easy access to major EU markets. Plus, its labor costs are lower than most Western European countries.
Here's a brief overview of the Czech Republic:
- Language: Czech
- Currency: Czech koruna (CZK)
- Capital City: Prague
- Population: 10.86 Million
- Cost of Living Rank: 54th
Tap Into Top Tech Talent in Czechia
One of the biggest draws of hiring in the Czech Republic is its highly educated tech talent pipeline. In fact, the number of Czech employees in the information and technology services sector has consistently increased since 2012, in large part thanks to the country's focus on STEM education and its numerous technical universities.
The Czech Republic is also home to several startups, tech companies, and innovation hubs, so the workforce is experienced — and often fluent in English and comfortable working across time zones.
The country is also well suited for remote tech work because of its strong digital infrastructure and the wide availability of high-speed internet.
Some of the most popular jobs for remote employees in the Czech Republic include:
- Software Developers
- Machine Learning Engineers
- UX/UI Designers
- Data Analysts
- Cloud Engineers
- IT Support Specialists
- Network Engineers
Employment Laws: Hiring Compliantly in the Czech Republic
Employment Contracts
Employment contracts are mandatory for all Czech employees and must meet the Czech Labour Code standards. There are two main types of contracts:
- Fixed-term: These are used for short-term work or for an individual to temporarily replace an absent employee. A fixed-term contract can't exceed three years but can be extended or renewed twice. If the employee continues to work after the contract's expiration, the contract automatically becomes an open-ended contract.
- Open-ended: This type of contract has no fixed end date, allowing the employment relationship to continue indefinitely.
Working Hours & Pay
The standard work week in the Czech Republic is 40 hours. Any time worked beyond this is classified as overtime, which is typically paid at 125% of regular pay. The employee may also receive additional time off in lieu of overtime pay.
Employers must obtain workers' consent before assigning them overtime, and overtime can't exceed 150 hours annually.
The minimum wage is CZK 20,800 per month or CZK 124.40 per hour as of January 1, 2025.
While many European countries mandate that employees receive a 13-month salary, an additional payment that workers typically receive in December, it's not a requirement in the Czech Republic. However, it's not uncommon for employers to offer a performance-based 13-month salary.
Probation Periods
In 2025, the probationary period in the Czech Republic was extended to four consecutive months for regular employees and up to eight months for those in senior-level positions.
Employer Taxes
Employers of Czech workers must deduct the following from full-time employees' gross salary:
- Social Security, unemployment, and pension: 24.8% (The maximum annual cap is CZK 2,234,736.)
- Health insurance: 9% (The minimum monthly base is CZK 15,500. There is no cap.)
- Unemployment insurance: 1.2%
Termination Process & Severance Pay
The employer needs to provide written notice to terminate an employee and provide a government-approved reason for the termination. These include:
- An employee being made redundant
- The employer shutting down or relocating
- Breach of employment contract
- Long-term incapacity of the employee
Employers must provide at least two months' notice of termination, and the notice period begins on the first day of the calendar month. For example, if notice is given on July 3, the notice period begins on August 1 and ends on September 30.
Severance pay is dependent on how long a worker was employed at the company, as outlined below.
- 0-1 years: No severance
- 1-2 years: 1 month's salary
- 2-3 years: 2 months' salary
- 3+ years: 3 months' salary
Learn more about compliant termination in our guide Terminating International Employees [What You Need to Know].
Paid Leave Laws in the Czech Republic
Vacation and Holiday
Czech employees who have worked for the same employer for at least four weeks receive 20 days of paid time off annually. This leave is accrued throughout the year, and any unused leave can be carried over into the next year.
The Czech Republic has 13 public holidays, including:
- New Year's Day
- Good Friday
- Liberation Day
- Jan Hus Day
- Statehood Day
- Christmas Eve
- Christmas Day
Sick Leave
Employees who become ill are entitled to up to 380 days of sick leave.
For the first 14 days, their employer pays 60% of their wages. On the 15th day, Social Security takes over.
Maternity Leave
Pregnant employees are entitled to 28 weeks of maternity leave (37 weeks in the case of multiple births).
Mothers receive 70% of their salary beginning six weeks before their due date, which is paid for by Social Security.
Paternity Leave
Fathers are entitled to 14 days of paid paternity leave, which must be taken within the first six weeks of the child's birth. Pay is 70% of the father's salary.
Parental Leave
Once maternity and paternity leave is over, parents can take up to three years of parental leave. They're entitled to a CZK 350,000 parental allowance regardless of the amount of leave taken.
Parents of adopted children receive the same benefits.
Why Digital Nomads Love the Czech Republic
Digital nomads are increasingly drawn to the Czech Republic for its vibrant cities, rich cultural heritage, and affordable lifestyle. Prague, in particular, offers a strong infrastructure for remote work — think fast Wi-Fi, coworking spaces, and a thriving international community — while still boasting lower living costs compared to Western Europe.
Add in a high quality of life, great beer, and scenic towns, and it's no wonder the Czech Republic has become a top destination for remote professionals.
In 2023, the Czech government introduced a Digital Nomad Visa. The visa allows remote workers and freelancers from select nations — the United States, the United Kingdom, Canada, Australia, New Zealand, Japan, South Korea, Taiwan, Brazil, Israel, Mexico, and Singapore — to live and work in the country for up to a year.
Applicants must have a university degree in science, technology, engineering, or mathematics — or at least three years of experience working in the IT sector — and prove they earn at least 1.5 times the average gross annual salary. As of 2025, marketing specialists are also eligible to apply.
It costs CZK 2,500 to apply for the Czech Republic's digital nomad visa
How to Pay Remote Workers in the Czech Republic
There are several ways to pay remote workers in the Czech Republic, each with pros and cons.
- Bank transfer: This is a widely used payment method, especially for employees with Czech bank accounts, but the process can be slow and comes with high fees.
- Money transfer: PayPal offers fast transfers and is familiar to many freelancers, but often charges high transaction fees. Wise is another popular option that works well with exchange rates but also has fees.
- Cryptocurrency: Some workers may be open to this payment method, which is quick; however, it carries risks due to market volatility, as well as potential tax issues.
Consider partnering with an Employer of Record (EOR) like RemoFirst to streamline payment processes and ensure compliance with Czech labor and tax laws.
We take on the responsibility of local payroll, tax withholding, and compliance, allowing you to pay your international team without having to set up a Czech legal entity or navigate complex global payroll systems.
Hire in the Czech Republic with RemoFirst
The Czech Republic offers access to a highly educated workforce, strong infrastructure, and a stable economy, making it an excellent choice for growing international teams. However, navigating local labor laws and managing international payroll can be complicated without support.
Partnering with an EOR like RemoFirst simplifies the process. We take on the responsibility of employing workers on your behalf, handling everything from onboarding and payroll to tax compliance and employee benefits.
Our all-in-one platform makes hiring remote employees in the Czech Republic — and 185+ other countries — easy. Book a demo to learn more.
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