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Labor Laws in the Czech Republic

  • Annual Leave: 4 weeks
  • Maternity Leave: 28 weeks
  • Public Holidays: 14
  • Workweek: 40 hours per week.

Income Tax in the Czech Republic

Individual income taxes are progressive, ranging from 15% to 23% based on the worker’s earnings.

Value Added Tax (VAT) in the Czech Republic

The standard sales tax is 21%.

Social Security in the Czech Republic

Social security contributions for employers and employees are as follows:

  • The employer: 24.8% for social security and 9% for health insurance.
  • The employee: 7.1% for social security and 4.5% for health insurance.

The payments are made by the employer (for both the employee's part deducted from one's gross salary and the employer's parts paid on top of the gross salary).

The maximum annual cap for the assessment base for the calculation of contributions into the social security system is 48 times the average monthly wage per year (i.e. CZK 2,110,416 for 2024). This cap applies to both employees and entrepreneurs.

There is no cap for contribution to health insurance.

Work Visas in the Czech Republic

Types of Work Visas in the Czech Republic:

Employee Card:

  • Combines a residence permit and work permit in one document.
  • Issued for a specific job position at a specific employer.
  • Valid for up to 2 years and can be extended.
  • Processing time is 60-90 days.

EU Blue Card:

  • Residence and work permit for university graduates (bachelor's or higher).
  • Requires reaching a wage limit of 1.5 times the national average.
  • Employers usually assist in collecting documents for the application.
  • Processing time is 90 days.

Intra-Company Employee Transfer Card:

  • For managers, specialists or trainees transferred internally from a non-EU company
  • Valid for 3 months to 3 years.

Short-term visa – Type C:

  • Granted for a maximum period of 90 days.
  • Requires holding a work permit for up to 90 days of employment with a Czech employer.
  • Application can be submitted up to 3 months in advance.
  • Processing time is up to 15 days.

Hire Czech Talent with Global Expansion

Setting up a company in the Czech Republic can be expensive and complex. Global Expansion simplifies your entry into this market.

We handle hiring, HR, and payroll while ensuring compliance with local regulations, all without establishing a local entity.

Our Czech Republic Employer of Record (EOR) solution gives you the freedom to focus on your business growth.

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