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EOR IN Czech Republic
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A guide to employing and growing your team in Czech Republic
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Czech Republic is located in Central Europe and is part of the EU. It has a very high standard of living and is known as one of the safest countries. Employment in the Czech Republic is primarily governed by the Labour Code (No. 262/2006 Coll.). In 2026, the labor market is defined by a significant minimum wage hike and a streamlined digital reporting system. As of January 1, 2026, the monthly minimum wage is CZK 22,400 (up from CZK 20,800 in 2025). Additionally, the new Unified Monthly Employer Report (UMER) has replaced multiple previous filings to simplify administrative burdens.
Employer Contributions
Pension Insurance: 21.5%
Health Insurance: 9.0%
Sickness Insurance: 2.1%
Unemployment Insurance: 1.2%
Maximum Assessment Base: For 2026, social security contributions are capped at an annual gross income of CZK 2,350,416.
Total Employer Contribution: 33.8%
Employee Payroll Taxes
Social Security (Pension): 6.5%
Health Insurance: 4.5%
Sickness Insurance: 0.6%
Total Employee Contribution: 11.6%
Employee Income Tax Rates
Up to CZK 146,901: 15%
Above CZK 146,901: 23%
Statutory Leave
Employees are entitled to a minimum of 4 weeks of paid annual leave (160 hours for a full-time 40-hour week). Public sector workers typically receive 5 weeks. The Czech Republic observes 13 public holidays. Under the Labour Code, if a holiday falls on a weekend, it is typically lost and not “recovered” on the following Monday.
Pregnancy and Maternity Leave
In the Czech Republic, maternity leave is highly protected and typically lasts for 28 weeks, extending to 37 weeks in the case of multiple births. It generally commences six to eight weeks before the expected date of delivery, and for the duration of this period, mothers receive a state benefit known as Maternity Cash Assistance (PPM) equal to 70% of their daily assessment base. To qualify, an employee must have been insured for at least 270 days within the previous two years. The law is strictly protective, prohibiting dismissal during this time and requiring employers to reinstate the mother to her original job and workplace if she returns immediately following the 28-week leave.
Paternity Leave
Fathers are entitled to 2 weeks (14 days) of paid paternity leave. This must be taken within the first six weeks following the child’s birth or placement. Similar to maternity leave, the benefit is paid by the state at 70% of the daily assessment base.
Work-Related Injury Leave
Parental Leave: Available to either parent until the child is 3 years old. A Parental Allowance (a total sum of CZK 350,000 for children born after Jan 1, 2024) is paid by the state.
Sick Leave: The employer pays for the first 14 days of sickness at 60% of average earnings (working days only). From the 15th day, state sickness insurance takes over.
Termination Process
Termination must be in writing. Employers must provide a valid legal reason (e.g., redundancy or breach of duty). Redundancy entitles the employee to Severance Pay:
Under 1 year: 1 month’s average pay.
1 – 2 years: 2 months’ average pay.
Over 2 years: 3 months’ average pay.
Notice Period
The statutory notice period is 2 months for both the employer and the employee. The period officially starts on the first day of the calendar month following the delivery of the notice (e.g., notice given on Jan 15 begins on Feb 1 and ends on March 31).
Probation Period
A probation period of up to 3 months is standard (6 months for management). During this time, either party can terminate the contract immediately and without giving a reason, provided the termination is delivered in writing before the probation ends.