Quick facts
The Czech Republic is a landlocked country in central Europe, with a population of around 10.7 million people with its capital city is Prague. It has a rich history and culture, with a diverse economy that includes manufacturing, automotive and services. The official language is Czech, the currency is the Czech koruna. As we wrote previously, it is a magnetic place for immigration.
In the Czech Republic, employment contracts can be either fixed-term or indefinite. Fixed-term contracts are limited to a maximum of three years, with the possibility of extension for up to two more years. Indefinite contracts have no set end date.
It's feasible to electronically sign the comprehensive list of documents using the email address specified in the employment agreement.
Employers in the Czech Republic can set a probation period for new employees. The maximum length of this period is three months for non-managerial positions and six months for managerial positions.
When it comes to working hours, the standard workweek is 40 hours, but it can be spread over 5 or 6 days, depending on the company’s policy. Overtime should be at most 8 hours per week or 150 hours per year and it must be compensated with additional pay or time off.
Employees get a minimum of four weeks (20 days) of paid vacation per year. This amount can increase with years of service or based on the employee’s specific collective bargaining agreement.
Employees take up to 14 days of annual sick leave with full pay. After that – the employer can reduce the payment to 60% of the employee’s average earnings for up to 380 days.
In terms of salary payment, employers or Czech Republic EOR must pay their employees at least once a month and provide a payslip that includes all deductions and contributions.
The minimum wage was raised in 2025 to CZK 20,800 (€832 per month), and the old eight-tier guaranteed wage system is no longer active.
In the Czech Republic, employees have day off to 13 public holidays annually. Main holidays include New Year’s Day, Easter Monday, Labor Day, Victory Day, and Christmas Day.
Employer contributions are now 24.8% for social security (pensions, unemployment, sickness) and 9% for health insurance.
The progressive tax rate threshold changed in 2025. Previously, employees paid 23% tax if their income exceeded 4x the average salary. Now, the threshold is 3x the average salary (CZK 139,671).
The maximum annual cap for social security contributions is now set at 48x the average monthly wage (CZK 2,234,736 for 2025).
The notice period for terminating an employment contract in the Czech Republic depends on the length of the employee’s work. For example, an employee hired for less than 2 years is entitled to a notice of at least 2 months, while an employee who has been employed for more than 2 years is authorized to at least 3 months.
In the Czech Republic, an employer can terminate an employment contract for various reasons, such as redundancy or breach of contract. Terminated employees are subject to severance, calculated based on their length of service and salary. The minimum pay is 1 month’s salary for each year of service.
International EOR (Employer of Record) and PEO (Professional Employer Organization) are services that enable businesses to compliantly hire, manage, and pay employees in foreign countries without the need for establishing a legal entity. EOR acts as the legal employer while PEO co-employs workers, handling administrative tasks such as payroll, taxes, and benefits.
Acvian does not handle time record submissions directly. It is the client’s responsibility to track and submit employee work hours. However, Acvian can offer guidance and best practices to ensure efficient time tracking and compliance with local labor laws.
Employees can view their payroll details through the monthly payslips they receive and also via our Acvian platform. These payslips contain information on earnings, deductions, taxes, and net pay, giving employees a clear overview of their monthly payroll. Please note that in some countries, employers are restricted from viewing payslips due to data protection regulations, and only employees can share their payslips. For more details on these regulations, please contact our specialists.
Acvian addresses payroll disputes promptly, working closely with both the client and the employee to investigate and resolve any issues.
Yes, Acvian requires advanced monthly payments for salaries and service to ensure timely and accurate payroll processing.
Yes, Acvian can provide consultations regarding labor and tax legislation. Our team of experts is well-versed in local regulations and can offer guidance to help your business maintain compliance, reduce risk, and navigate the complexities of international employment and taxation laws.
Acvian provides a diverse range of benefits, including but not limited to:
We can customize and offer many kinds of benefits requested by the client, ensuring that your employees receive the support and perks that align with your company culture and local regulations.
Acvian can provide private health insurance options as part of its comprehensive employee benefits package.
The monthly/yearly costs for an ‘average’ package vary depending on the specific plan and location. See our estimated price packages here. Acvian’s team can provide detailed cost breakdowns based on your requirements.
While Acvian doesn’t directly provide entity set-up services, we can introduce you to local lawyers who specialize in this area to assist you with your needs. See also, when it's better to set the entity or use the EOR.
Offboarding is managed by Acvian in a structured and compliant manner. We coordinate with your business to ensure all necessary documentation, exit interviews, and final payments are completed. Acvian also ensures adherence to local labor laws and regulations, including providing any required notice periods and managing the termination process.
Businesses typically need EOR and PEO services when they:
Yes, Acvian is fully compliant with GDPR regulations. We collect and process personal data in accordance with the law, ensuring that data is used only for general, allowed purposes such as marketing and other legitimate business activities.
Acvian can supply EOR services in over 180 countries, encompassing almost all European nations, the United States, and Canada, providing extensive coverage to support your business’s global expansion and workforce management needs. See our coverage here.
Under EOR, Acvian manages the payroll process by:
Explore the details here.
Yes, Acvian provides comprehensive support for expatriate EOR workers, including:
Explore in details here.
Expats support from Acvian encompasses a range of services designed to facilitate a smooth transition for employees working abroad. Key aspects include:
After onboarding, Acvian maintains an ongoing relationship with your business and employees, ensuring smooth payroll processing, managing tax and regulatory compliance, handling benefits administration, and providing support for any changes or issues that may arise in the employment lifecycle. This allows you to focus on your core business operations while Acvian manages your international workforce.
The onboarding process typically takes between 2 to 4 weeks, depending on the country and complexity of the employee’s situation. However, Acvian strives to expedite this process, ensuring a smooth and efficient transition for your personnel. See our story of the urgent employment project.
Yes, Acvian provides in-country or regional support for employee inquiries and assistance requests. We have dedicated managers in the countries where we support your employees, ensuring prompt and knowledgeable assistance tailored to local regulations and practices.
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