Employment in the Czech Republic is governed by the Labour Code (Act No. 262/2006 Coll.), with sickness, pension and health insurance handled through state schemes. Here is what employers need to know about leave, pay, tax, payroll costs and ending employment.
The Labour Code sets minimum leave for employees. Leave is calculated in hours based on the employee’s weekly working time, so part-time employees receive a proportionate entitlement. Maternity, paternity and sickness benefits are paid by the state sickness insurance scheme, not by the employer.
The statutory minimum per calendar year, paid at average earnings. 5 weeks in the public sector and 8 weeks for teachers and academics. Many employers give 5 weeks by contract or collective agreement.
For the first 14 calendar days of illness the employer pays wage compensation of 60% of the employee’s adjusted average earnings for working days. From day 15, the state pays sickness benefit.
37 weeks for multiple births. Usually starts 6–8 weeks before the due date. Maternity benefit is paid by the state at 70% of the daily assessment base.
Taken within 6 weeks of the birth (with an extension if the child is hospitalised). Paternity benefit is paid by the state at 70% of the daily assessment base.
Either parent can take parental leave on written request until the child turns 3 – the mother after her maternity leave ends, the father from the child’s birth. Both parents can be on leave at the same time. Parental leave is unpaid by the employer; families can claim the state parental allowance instead.
Leave is meant to be taken in the year it accrues. Untaken leave is carried into the following year, and unused leave can only be paid out when employment ends.
Set up each Czech leave type in IceHrm with its own accrual, carry forward and approval rules, including pro-rata entitlements for part-time staff. Employees see their live balance before they apply, and managers see who is away on a shared calendar. Leave management →
Since 2025 the minimum wage has been set each year by an indexation mechanism linked to the forecast average wage, and it applies from 1 January.
CZK 134.40 per hour for a 40 hour week, from 1 January 2026. Public sector employees have separate guaranteed pay scales.
37.5 hours for multi-shift and continuous operations and underground mining, and 38.75 hours for two-shift work.
At least 25% of average earnings on top of pay, unless the employee agrees to take time off in lieu instead.
Overtime should only be exceptional. An employer can order up to 8 hours a week and 150 hours a year; anything above that needs the employee’s agreement, and total overtime must not exceed an average of 8 hours a week over a period of up to 26 weeks (52 weeks under a collective agreement). Salaries can be agreed to include up to 150 hours of overtime a year, provided the contract says so.
Capture attendance and overtime in IceHrm and feed the hours straight into payroll, so overtime and holiday premiums reflect what was actually worked. Time & attendance →
The Czech Republic taxes employment income at two progressive rates, calculated on gross salary. Employers withhold tax monthly as advance payments and can carry out an annual tax reconciliation for employees who sign a tax declaration with them.
| Annual gross income | Rate |
|---|---|
| Up to CZK 1,762,812 | 15% |
| Over CZK 1,762,812 | 23% |
Annual returns are due by 1 April (1 May if filed electronically, 1 July through a registered tax adviser). Employees with only Czech employment income usually don’t need to file.
Social security (pension, sickness and unemployment insurance) and health insurance are calculated on gross salary. The employer deducts the employee’s share and pays both parts each month.
Paid to the Czech Social Security Administration (ČSSZ). Capped at 48 times the average monthly wage, CZK 2,350,416 for 2026.
Paid to the employee’s chosen health insurance company. There is no cap.
On top of gross salary, before any statutory accident insurance and other benefits.
| Contribution | Employer | Employee |
|---|---|---|
| Social security (pension, sickness, unemployment) | 24.8% | 7.1% |
| Health insurance | 9% | 4.5% |
| Total | 33.8% | 11.6% |
Build Czech pay the way you already structure it, with your own salary components, deductions and formula columns, such as social security and health insurance columns. Want to know how well IceHrm handles payroll calculations for the Czech Republic? Contact us or see Payroll →
Employees can resign without giving a reason, but an employer can only give notice on one of the grounds listed in the Labour Code. Notice must be in writing, and dismissal is prohibited during protected periods such as sick leave and maternity or parental leave.
| Situation | Minimum notice |
|---|---|
| Notice by employee or employer (general rule) | 2 months |
| Employer notice for failing job requirements, poor performance or breach of duties | 1 month |
Severance is due when employment ends for organisational reasons (closure, relocation or redundancy), whether by employer notice or by agreement for the same reason.
| Length of employment | Severance pay |
|---|---|
| Less than 1 year | 1 month |
| 1 year, less than 2 years | 2 months |
| 2 years or more | 3 months |
| Occupational injury, disease or exposure limit reached | 12 months |
Final pay includes compensation for any unused annual leave, which is the only time leave can be paid out.
The Czech Republic has 13 public holidays, set by Act No. 245/2000 Coll. They apply nationwide.
Employees who work on a public holiday receive time off in lieu, or a premium of at least their average earnings if agreed. Holidays that fall on a weekend are not moved to a weekday.
Leave groups give each office its own holiday calendar, so a team split between Prague and offices in other countries gets the right days off automatically. Holiday calendars →
An employment contract must be in writing and each party must receive a copy. Employers can also engage people on two kinds of agreements outside an employment relationship: an agreement to perform a job (DPP, up to 300 hours a year with the same employer) and an agreement to perform work (DPČ, averaging no more than half the standard weekly hours).
If the contract doesn’t cover them, the employer must also inform the employee in writing about matters such as pay and pay dates, working hours, leave, notice periods and training.
Send contracts and written information for e-signing, store them on the employee’s record, and track registrations and onboarding with task lists so nothing is missed on day one. Documents & e-signing →
This guide is general information to help you plan HR processes, not legal, tax or financial advice. Employment law and rates change regularly and awards, enterprise agreements and state rules may give employees more than the minimums shown here. Always confirm current requirements with the official sources or a qualified adviser.
Configure leave types, accrual rules and public holidays for Czech Republic, keep employee records and contracts in one place, and run payroll with your own salary components. Want to know how IceHrm handles payroll calculations for Czech Republic? Talk to us.
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