Czech Republic Employment Guide
Czech Republic Employment Guide
The Czech Republic is in Central Europe, at the heart of the EU, bordering Germany, Austria, Slovakia and Poland with convenient transportation. It has ~10.5 million people; Prague (the capital) is a key political, economic and cultural center. Its economy is pillar-supported by manufacturing, auto industry, machinery and IT, while tourism is also well-developed. As an EU member state, it has a stable labor market and a highly educated workforce. Labor laws strictly regulate employment relations, including clear requirements for written contracts, a 40-hour standard workweek, minimum wages, overtime and paid leave. Employers must contribute to employees’ social and health insurance, and dismissal procedures must follow legal rules to protect employees’ rights.
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Currency
Czech Koruna (CZK)
Capital
Prague
Official language
Czech
Salary Cycle
Monthly
Our Employment Guide in Czech Republic
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Maternity Leave Regulations in the Czech Republic
Employees who have contributed to sickness insurance for at least 270 calendar days within the past two years are eligible for 28 weeks of paid maternity leave. For multiple births, this period extends to 36 weeks. The leave must commence no later than six weeks before the expected delivery date.
Compensation is calculated at 70% of the assessment base, with a monthly cap of CZK 49,440, funded through the social security system. The assessment base is determined by dividing the employee's total earnings over the preceding 12 months by the number of calendar days in that period.
Paternity Leave Entitlements
Fathers qualify for 14 days of paid paternity leave if they have maintained continuous sickness insurance contributions for three months prior to taking leave. This leave must be initiated within six weeks following the child's birth.
Similar to maternity benefits, paternity compensation amounts to 70% of the assessment base, calculated using the same 12-month earnings formula, and is administered through social security.
Sick Leave Compensation Structure
Employees are entitled to up to 74 days of paid sick leave annually. The first 14 days are employer-funded, while subsequent days are covered by social security.
Duration | Compensation Rate | Payer |
---|---|---|
Days 1-14 | 60% of base salary | Employer |
Days 15-44 | 66% of base salary | Social Security |
Days 45-74 | 72% of base salary | Social Security |
Practical Implications for International Employers
Companies like SailGlobal must carefully track insurance eligibility periods when managing international assignments in the Czech Republic. For instance, an employee transferred from abroad may need supplemental coverage to meet the 270-day insurance requirement for maternity benefits.
The graduated sick pay system creates administrative considerations—employers should establish clear procedures for transitioning payment responsibilities between company payroll and social security authorities at the 14-day mark.
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