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.

Check recruitment costs

Currency

Czech Koruna (CZK)

Capital

Prague

Official language

Czech

Salary Cycle

Monthly

Our Employment Guide in Czech Republic

Browse the following tags to learn all about hiring employees in Czech Republic

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.

DurationCompensation RatePayer
Days 1-1460% of base salaryEmployer
Days 15-4466% of base salarySocial Security
Days 45-7472% of base salarySocial 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.

Hire easily in Czech Republic

Compare employee hiring costs across over 100 countries worldwide, helping you accurately calculate labor costs. Try it now

Cost Calculator

Please select the country/region you wish to recruit from, and the calculation can be done with just a few clicks.