Czech Republic PEO & EOR services
Czech Republic offers a diverse range of employment opportunities, attracting both domestic and international talent to contribute to its thriving workforce.
Employment Termination and Notice Period in Czech Republic
In the Czech Republic, dismissal with notice is permitted under conditions such as organizational change resulting from dissolution, relocation, or other non-discriminative reasons. The employer may provide sufficient reason for dismissal without notice due to misconduct, disobedience, lack of competence, neglect of duties, or unauthorized absence.
The law provides a minimum notice period of two months for either party, employer, or employee initiating the termination. The two-month notice period may be extended by agreement between the parties. No notice period is required for dismissal during the trial period and for immediate dismissal due to misconduct.
Average salary, average employer costs and working hours in Czech Republic
The average salary in the Czech Republic is $19.121.76. This is less than half the average annual salary in the United States, which is $53,490.00. As an employer, the actual employer costs are approximately 33.80% higher than the gross annual salary. Based on an annual salary of $19.121.76, employment costs would be $25.431,94 in the Czech Republic
See all average salaries in Europe in 2022
The standard workweek in the Czech Republic is 40 hours per week, with a maximum of nine hours per working day. Any work performed beyond the usual weekly hours constitutes overtime and is governed by the employment contract/collective agreements.
All overtime hours worked beyond 40 hours per week are compensated at an overtime rate of 125.00% of the employee's regular pay rate.
Paid vacation leave and public holidays in Czech Republic
In the Czech Republic, full-time employees are entitled to a minimum of 4 weeks or 20 days of leave per year, excluding public holidays. However, it is common for employers to offer 5 weeks of paid vacation (25 days of paid vacation).
An employer may require an employee to take up to 2 weeks of paid leave on specific dates if communicated in writing by the end of June of the current year.
The main public holidays, for which most employees in the Czech Republic are granted leave, are listed below. In addition to the national holidays listed, some days may be observed as regional holidays, bank holidays, and days not worked in certain sectors.
- New Year's Day - 1 January
- Good Friday - 15 April
- Easter - 17 April
- Easter Monday - 18 April
- Labour Day - 1 May
- Liberation Day - 8 May
- St Cyril and St Methodius Day - 5 July
- Jan Hus Day - 6 July
- Czech Statehood Day - 28 September
- Republic Day - 28 October
- Freedom and Democracy Day - 17 November
- Christmas Eve - 24 December
- Christmas Day - 25 December
- St. Stephen's Day/2nd Day of Christmas - 26 December
Add 2023 Czech Republic Public Holidays to your calendar
Social Security Tax for Employers in Czech Republic
In the Czech Republic, both the employer and the employee pay social security contributions. On average, employers have to pay 33.80% social contribution to the local authorities.
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To learn more about the Social Security Tax in Europe we invite you to read this article on social security tax rates for Employers across the Europe.
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Monique Ramondt-Sanders
CCO & VP of HR Outsourcing