How is payroll managed in the Czech Republic?

In the Czech Republic, the standard pay frequency is monthly. Employees are subject to a flat income tax rate of 15%, while employers face tax rates of approximately 32%. Employer taxes include contributions to Pension, Sickness and Unemployment Funds, and Health Insurance.

What are the key employment regulations?

The working week in the Czech Republic is set at 40 hours, typically spread over 8 hours per day, with a maximum limit of 12 hours per day. Overtime must be mutually agreed upon and is capped at 8 hours per week and 150 hours annually.

Maternity Leave entitlement in the Czech Republic is 28 weeks, with a mandatory minimum of 14 weeks. Leave can commence up to 8 weeks before the expected birth date but must begin at least 6 weeks prior. In cases of multiple births, an extended Maternity Leave of 37 weeks is available.

What should be considered when dismissing an employee?

Dismissing an employee in the Czech Republic requires adherence to a specific process. It’s recommended to consult with one of our local employment experts before proceeding with a dismissal. Severance payments vary based on service length, typically equating to 1 month’s salary for 1 year of service, 2 months’ salary for 2 years, and 3 months’ salary for 3 or more years of service.