Good to know
In the Czech Republic, compensation for overtime work can take the form of either increased wage rates or the provision of extra time off. Additionally, when employees work on holidays, they have the right to receive both their regular wages and additional time off.
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In the Czech Republic, the national minimum wage is set at 17,300 CZK per month.
Standard Working Hours
The standard workweek consists of 40 hours, and employees are allowed to work a maximum of 9 hours per day. The standard working week is Monday – Friday.
Any work carried out beyond the regular weekly hours is considered overtime and is governed by employment contracts or collective agreements.
If an employee is asked to work extra hours or during holidays, the limits are set at a maximum of 8 additional hours per week or 150 hours per year. All overtime hours exceeding 40 hours per week will be compensated at a rate of 125.00% of the employee’s regular pay rate.
The standard payroll cycle is usually monthly, with payments due on the same day of each month or before the end of the following calendar month for the work done.
Regarding the 13th salary, there is no obligatory legal mandate to provide it in the Czech Republic. However, numerous employers choose to grant a 13th-month salary bonus, often based on performance.
Paid time off
Employees in the Czech Republic are entitled to 4 weeks of paid leave each year in addition to 13 paid public holidays.
Employees have the right to paid sick leave. In the initial 14 days of leave, eligible employees receive 60% of their regular wages. After the 15th day, they are entitled to sickness benefits that are paid from sickness insurance. The maximum duration for which sickness benefits can be availed is 380 calendar days.
Maternity leave provides 70% of the mother’s average gross salary for a duration of up to 28 weeks, commencing 6-8 weeks before the due date. If a mother gives birth to multiple children at once, the maternity leave period may extend to 37 weeks.
The minimum length of maternity leave is 14 weeks, and it must continue for at least 6 weeks after childbirth. Funding for maternity and paternity leave payments in the Czech Republic is derived from government social security funds.
Paternity leave covers 70% of the father’s average gross salary for up to 7 days. Paternity leave must be used within the first 6 weeks of childbirth as a single block.
Termination of Employment
Employers must provide written notice with a stated reason to terminate an employee. Employees who resign on their own are not required to provide reasoning for the decision.
Severance pay is depending upon the duration of the employee’s length of service.
The notice period for both dismissals and resignations must be at least 2 months.
The probationary period varies based on the nature of the position and is specified in the employment contract, however, it is usually up to a maximum of 6 months.
Business visitors planning to travel to the Czech Republic typically require a local version of the Schengen C Visa, which they must obtain before their arrival, unless they are visa-exempt based on their nationality. It’s important to note that the Schengen Area imposes a 90-day limit for stays within any 180-day period, calculated cumulatively across all Schengen Area countries.
Regarding work authorisation, the primary category is the Employee Card, which serves as a combined work and residence permit for highly skilled local hires. However, for intracompany transfers, assignments, and secondments, the Employee Card must be complemented with a separate work permit. The Employee Card can be issued for a duration of up to two years and is renewable.
The standard rate of VAT in the Czech Republic is 21%.