Good to know
Local Currency: Czech Koruna (CZK)
Minimum Salary: CZK 16,200/month or CZK 96.40 per hour (2022)
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
Overtime is allowed, provided that the work week (including overtime) does not exceed an average of 48 hours over a four-month period.
Paid Leave: the legal period of annual leave is 4 weeks.
A longer period may be defined by collective agreements.
About the Czech Republic
The Czech Republic is a central European country and is boarded by Poland to the north-east, Germany to the north-west and west, Austria to the south and Slovakia to the south-east.
The architectural splendours of the country fascinate most visitors. There are some of the most beautiful buildings in the Czech Republic, Art Nouveau and cubists from Europe. The Czechs excel in other forms of artistic expression such as religious sculptures or illuminations.
The Czech Republic has one of the most industrialised and developed economies. It is a preferred destination for foreign direct investment in Central Europe.
Fun Fact: Prague Castle is the largest ancient castle in the world. In fact, the Czech Republic has more than 2,000 castles throughout the country.
Are you planning to settle in the Czech Republic? Do you need help with payroll or human resources management? Our Czech payroll and human resources experts will provide you with a fast and accurate service in full compliance with Czech legislation.
Ready to Benefit from a Czech HR & Payroll Expert?
The Czech Social Security System (for employees)
The Czech social security system covers sickness and maternity, old age, disability and survivors, occupational injuries and diseases, unemployment and family benefits. With a few exceptions, employees in the private sector are obliged to be covered for all risks, either on the basis of their residence or on the basis of their professional activity.
The Czech social security system is largely financed by employee and employer contributions. Family benefits and dependency allowances are financed entirely by taxes.
Source : The Cleiss
Administrative Organisation
Pension and sickness-maternity insurance (cash benefits)
The Czech Social Security Administration – ČSSZ (Česká Správa Sociálního Zabezpečení) – collects contributions, sets and provides cash benefits for old-age, disability, survivors’ and sickness-maternity insurance.
The ČSSZ also has a department responsible for assessing the health status and work capacity of insured persons.
Unemployment Insurance
Unemployment benefits are paid by the local offices of the Labor Office of the Czech Republic (Úřad práce ČR), under the supervision of the Employment Department (Sekce zaměstnanosti) of the Ministry of Labour and Social Affairs. The local offices are also responsible for collecting information about job seekers and organising employment promotion programs.
Health Care
Medical services are provided by health centers, hospitals and other health care professionals who have concluded a contract with a Czech health insurance fund. The insured chooses a health insurance fund from among the 7 that are responsible for administering insurance. The main one is the General Health Insurance Company (Všeobecná zdravotní pojišťovna ČR).
Workplace accidents & occupational diseases
Two private insurance companies are in charge of the management of the occupational accidents and diseases insurance:
Family Benefits
Family benefits are administered by the Labor Office of the Czech Republic (Úřad práce ČR) and its local offices. The Labour Office also handles social assistance benefits, including the dependency allowance.
Source : The Cleiss
Social Contributions in the Czech Republic
The table below shows the contribution percentages for salaried employees.
Contribution rates as of January 1, 2022 |
|||||
| Risks | Employer | Employee | Annual Ceiling | ||
| Sickness, maternity – cash benefits | 2,1 % | – | 1 867 728 CZK | ||
| Health Care (1) | 9 % | 4,5 % | – | ||
| Old age, disability, death | 21,5 % | 6,5 % | 1 867 728 CZK | ||
| Workplace accidents and occupational diseases | Depending on the risk (2) | – | – | ||
| Unemployment | 1,2 % | – | 1 867 728 CZK | ||
(1) The calculation basis must be at least the minimum wage, i.e. CZK 16,200 per month.
(2) Contributions range from 0.28% to 5.04% of gross salary. The minimum contribution is CZK 100 per quarter.
Source : The Cleiss
Personal Income Tax
Before 2020, the personal income tax rate was 15% and was calculated on the basis of the “super gross income” (social insurance and health insurance paid by the employer on the basis of the salary were added to the employee’s labour income tax base). A solidarity surcharge of 7% was applied for high incomes.
As of 2021, the concept of “super gross income” has been suppressed and the tax base is no longer calculated solely on the basis of gross income. The 7% surtax has also been removed and replaced by a progressive rate system.
From 2021, the Czech Republic returns to progressive taxation, with the introduction of a 23% marginal rate, as follows:
- Gross income up to the social security payment ceiling (the threshold for 2021 is CZK 1,701,168 and for 2022 CZK 1,867,728) is subject to a 15% rate.
- The gross income exceeding this threshold is subject to a rate of 23%.
Source : PWC
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Czech Republic.
Our Payroll and HR services in the Czech Republic
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
HR & Payroll in the Czech Republic
HR & Payroll in the Czech Republic
Good to know
Local Currency: Czech Koruna (CZK)
Minimum Salary: CZK 16,200/month or CZK 96.40 per hour (2022)
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
Overtime is allowed, provided that the work week (including overtime) does not exceed an average of 48 hours over a four-month period.
Paid Leave: the legal period of annual leave is 4 weeks.
A longer period may be defined by collective agreements.
Ready to Benefit from a Czech HR & Payroll Expert?
About the Czech Republic
The Czech Republic is a central European country and is boarded by Poland to the north-east, Germany to the north-west and west, Austria to the south and Slovakia to the south-east.
The architectural splendours of the country fascinate most visitors. There are some of the most beautiful buildings in the Czech Republic, Art Nouveau and cubists from Europe. The Czechs excel in other forms of artistic expression such as religious sculptures or illuminations.
The Czech Republic has one of the most industrialised and developed economies. It is a preferred destination for foreign direct investment in Central Europe.
Fun Fact: Prague Castle is the largest ancient castle in the world. In fact, the Czech Republic has more than 2,000 castles throughout the country.
Are you planning to settle in the Czech Republic? Do you need help with payroll or human resources management? Our Czech payroll and human resources experts will provide you with a fast and accurate service in full compliance with Czech legislation.
The Czech Social Security System (for employees)
The Czech social security system covers sickness and maternity, old age, disability and survivors, occupational injuries and diseases, unemployment and family benefits. With a few exceptions, employees in the private sector are obliged to be covered for all risks, either on the basis of their residence or on the basis of their professional activity.
The Czech social security system is largely financed by employee and employer contributions. Family benefits and dependency allowances are financed entirely by taxes.
Source : The Cleiss
Administrative Organisation
Pension and sickness-maternity insurance (cash benefits)
The Czech Social Security Administration – ČSSZ (Česká Správa Sociálního Zabezpečení) – collects contributions, sets and provides cash benefits for old-age, disability, survivors’ and sickness-maternity insurance.
The ČSSZ also has a department responsible for assessing the health status and work capacity of insured persons.
Unemployment Insurance
Unemployment benefits are paid by the local offices of the Labor Office of the Czech Republic (Úřad práce ČR), under the supervision of the Employment Department (Sekce zaměstnanosti) of the Ministry of Labour and Social Affairs. The local offices are also responsible for collecting information about job seekers and organising employment promotion programs.
Health Care
Medical services are provided by health centers, hospitals and other health care professionals who have concluded a contract with a Czech health insurance fund. The insured chooses a health insurance fund from among the 7 that are responsible for administering insurance. The main one is the General Health Insurance Company (Všeobecná zdravotní pojišťovna ČR).
The health insurance funds also collect health care contributions.
Workplace accidents & occupational diseases
Two private insurance companies are in charge of the management of the occupational accidents and diseases insurance:
Family Benefits
Family benefits are administered by the Labor Office of the Czech Republic (Úřad práce ČR) and its local offices. The Labour Office also handles social assistance benefits, including the dependency allowance.
Source : The Cleiss
Social Contributions in the Czech Republic
The table below shows the contribution percentages for salaried employees.
Contribution rates as of January 1, 2022 |
|||||
| Risks | Employer | Employee | Annual Ceiling | ||
| Sickness, maternity – cash benefits | 2,1 % | – | 1 867 728 CZK | ||
| Health Care (1) | 9 % | 4,5 % | – | ||
| Old age, disability, death | 21,5 % | 6,5 % | 1 867 728 CZK | ||
| Workplace accidents and occupational diseases | Depending on the risk (2) | – | – | ||
| Unemployment | 1,2 % | – | 1 867 728 CZK | ||
(1) The calculation basis must be at least the minimum wage, i.e. CZK 16,200 per month.
(2) Contributions range from 0.28% to 5.04% of gross salary. The minimum contribution is CZK 100 per quarter.
Source : The Cleiss
Personal Income Tax
Before 2020, the personal income tax rate was 15% and was calculated on the basis of the “super gross income” (social insurance and health insurance paid by the employer on the basis of the salary were added to the employee’s labour income tax base). A solidarity surcharge of 7% was applied for high incomes.
As of 2021, the concept of “super gross income” has been suppressed and the tax base is no longer calculated solely on the basis of gross income. The 7% surtax has also been removed and replaced by a progressive rate system.
From 2021, the Czech Republic returns to progressive taxation, with the introduction of a 23% marginal rate, as follows:
- Gross income up to the social security payment ceiling (the threshold for 2021 is CZK 1,701,168 and for 2022 CZK 1,867,728) is subject to a 15% rate.
- The gross income exceeding this threshold is subject to a rate of 23%.
Source : PWC
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Czech Republic.
Our Payroll and HR services in the Czech Republic
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure
Good to know
Local Currency: Czech Koruna (CZK)
Minimum Salary: CZK 16,200/month or CZK 96.40 per hour (2022)
Salary Calculation: gross to net
Legal Working Hours: 40 hours/week
Overtime is allowed, provided that the work week (including overtime) does not exceed an average of 48 hours over a four-month period.
Paid Leave: the legal period of annual leave is 4 weeks.
A longer period may be defined by collective agreements.
Ready to Benefit from a Czech Republic HR & Payroll Expert?
About the Czech Republic
The Czech Republic is a central European country and is boarded by Poland to the north-east, Germany to the north-west and west, Austria to the south and Slovakia to the south-east.
The architectural splendours of the country fascinate most visitors. There are some of the most beautiful buildings in the Czech Republic, Art Nouveau and cubists from Europe. The Czechs excel in other forms of artistic expression such as religious sculptures or illuminations.
The Czech Republic has one of the most industrialised and developed economies. It is a preferred destination for foreign direct investment in Central Europe.
Fun Fact: Prague Castle is the largest ancient castle in the world. In fact, the Czech Republic has more than 2,000 castles throughout the country.
Are you planning to settle in the Czech Republic? Do you need help with payroll or human resources management? Our Czech payroll and human resources experts will provide you with a fast and accurate service in full compliance with Czech legislation.
The Czech Social Security System (for employees)
The Czech social security system covers sickness and maternity, old age, disability and survivors, occupational injuries and diseases, unemployment and family benefits. With a few exceptions, employees in the private sector are obliged to be covered for all risks, either on the basis of their residence or on the basis of their professional activity.
The Czech social security system is largely financed by employee and employer contributions. Family benefits and dependency allowances are financed entirely by taxes.
Source : The Cleiss
Administrative Organisation
Pension and sickness-maternity insurance (cash benefits)
The Czech Social Security Administration – ČSSZ (Česká Správa Sociálního Zabezpečení) – collects contributions, sets and provides cash benefits for old-age, disability, survivors’ and sickness-maternity insurance.
The ČSSZ also has a department responsible for assessing the health status and work capacity of insured persons.
Unemployment Insurance
Unemployment benefits are paid by the local offices of the Labor Office of the Czech Republic (Úřad práce ČR), under the supervision of the Employment Department (Sekce zaměstnanosti) of the Ministry of Labour and Social Affairs. The local offices are also responsible for collecting information about job seekers and organising employment promotion programs.
Health Care
Medical services are provided by health centers, hospitals and other health care professionals who have concluded a contract with a Czech health insurance fund. The insured chooses a health insurance fund from among the 7 that are responsible for administering insurance. The main one is the General Health Insurance Company (Všeobecná zdravotní pojišťovna ČR).
Workplace accidents & occupational diseases
Two private insurance companies are in charge of the management of the occupational accidents and diseases insurance:
Family Benefits
Family benefits are administered by the Labor Office of the Czech Republic (Úřad práce ČR) and its local offices. The Labour Office also handles social assistance benefits, including the dependency allowance.
Source : The Cleiss
Social Contributions in the Czech Republic
The table below shows the contribution percentages for salaried employees.
Contribution rates as of January 1, 2022 |
|||||
| Risks | Employer | Employee | |||
| Sickness, maternity – cash benefits | 2,1 % | – | |||
| Health Care (1) | 9 % | 4,5 % | |||
| Old age, disability, death | 21,5 % | 6,5 % | |||
| Workplace accidents and occupational diseases | Depending on the risk (2) | – | |||
| Unemployment | 1,2 % | – | |||
(1) The calculation basis must be at least the minimum wage, i.e. CZK 16,200 per month.
(2) Contributions range from 0.28% to 5.04% of gross salary. The minimum contribution is CZK 100 per quarter.
Source : The Cleiss
Personal Income Tax
Before 2020, the personal income tax rate was 15% and was calculated on the basis of the “super gross income” (social insurance and health insurance paid by the employer on the basis of the salary were added to the employee’s labour income tax base). A solidarity surcharge of 7% was applied for high incomes.
As of 2021, the concept of “super gross income” has been suppressed and the tax base is no longer calculated solely on the basis of gross income. The 7% surtax has also been removed and replaced by a progressive rate system.
From 2021, the Czech Republic returns to progressive taxation, with the introduction of a 23% marginal rate, as follows:
- Gross income up to the social security payment ceiling (the threshold for 2021 is CZK 1,701,168 and for 2022 CZK 1,867,728) is subject to a 15% rate.
- The gross income exceeding this threshold is subject to a rate of 23%.
Source : PWC
Our HR & Payroll Experts are Ready to Help
Payroll and HR are different in each country and to each business. Trust one of our local experts to ensure your company’s compliance in the Czech Republic.
Our Payroll and HR services in the Czech Republic
- Implementation and testing of the software
- An understanding of your individual business payroll processes
- Online payslips & payments
- A dedicated payroll expert
- Data entry & processing
- Payslip distribution
- Personnel & document production
- Legislation compliance
- Highly secure