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Employer of Record Czech Republic
Hire staff and expand your business in Czech Republic with our fully-managed EOR Service
How we can help
Unrivalled Employer of Record Service in Czech Republic designed to expand your business seamlessly
Agility EOR delivers services for business’s looking for an Employer of Record in Czech Republic. We help clients hire new employees or transfer existing employees into a fully-managed EOR service.
We appreciate that each situation and business is different. That is why our personal approach to Employer of Record Services in Czech Republic takes care of all HR, payroll, recruitment and compliance head aches, and allows you to do what you love best – driving your business forward.
Employer of Record in Czech Republic
A Brief Guide to Czech Republic
The Czech Republic is a country in Central Europe, known for its rich history, diverse culture, and stunning architecture. It has a parliamentary system of government and is a member of the European Union, the United Nations, and various international organizations. The nation has a growing economy driven by various industries.
Category | Information |
Location: | Central Europe |
Capital: | Prague |
Official Language: | Czech |
Area: | 78,866 square kilometers |
Population: | Approximately 10.7 million |
Currency: | Czech Koruna (CZK) |
Major Cities: | Brno, Ostrava, Pilsen, Olomouc |
GDP (2020): | $246 billion USD |
Human Development Index (HDI): | 0.900 (very high) |
Major Industries: | Automotive, engineering, electronics, chemicals, and pharmaceuticals |
Business Culture
Business Culture in Czech Republic
Business culture in the Czech Republic values professionalism, relationship-building, and respect for hierarchy. Punctuality is important, as well as appropriate attire and courtesy. Decisions are often made by top-level executives, and personal connections play a significant role. Engaging in small talk and socializing is common before discussing business matters.
Being well-prepared and demonstrating expertise is crucial when conducting business in the Czech Republic. A proper work-life balance is appreciated, and adhering to business etiquette, such as exchanging business cards and using proper titles, is expected.
Payroll and Taxes
Payroll and Taxes in Czech Republic
There is no statutory requirement to pay a 13/14th month in Czech Republic.
Employee Taxation
Income tax rates in the Czech Republic are progressive:
Gross Annual Income | Tax Rate (%) |
Up to CZK 1,701,168 | 15% |
Over CZK 1,701,168 | 23% |
Employer Taxation
Employer costs in the Czech Republic extend beyond the gross salary paid to employees. Employers are also responsible for various costs, which may include:
Employer Costs in Croatia | Approximate % of Gross Salary |
Social Security Contributions | 24.80% |
Public Health Insurance | 9.00% |
Accident Insurance | 0.19% |
Employment Law
Employment Law in Czech Republic
Employment Contracts: In the Czech Republic, employment contracts should be written, outlining essential details such as employment duration, working hours, salary, and termination notice periods.
Working Hours: The standard maximum working time in the Czech Republic is 40 hours per week or 8 hours per day. Overtime work is regulated, with compensation for extra hours.
Leave: Employees in the Czech Republic are entitled to various types of leave, including paid annual leave (minimum of 20 working days per year), maternity leave, paternity leave, sick leave, and family care leave.
Overtime:
In the Czech Republic, overtime occurs when an employee works beyond their standard working hours, as specified in their employment contract. Employers are required to compensate for this additional time, typically by offering extra pay or compensatory time off.
Termination: Termination of employment in the Czech Republic requires proper notice, which varies depending on the length of employment. Unjustified termination can lead to claims for damages or reinstatement.
Employees Rights: Employees in the Czech Republic have various rights, such as the right to equal treatment, protection against discrimination, and freedom of association. Regulations address working conditions, workplace safety, and employee representation.
Public Holidays
Czech Republic Public Holidays
New Year’s Day: | 1st January |
Easter Monday: | Varies |
Labor Day: | 1st May |
Victory Day: | 8th May |
Saints Cyril and Methodius Day: | 5th July |
Jan Hus Day: | 6th July |
Czech Statehood Day: | 28th September |
Independent Czechoslovak State Day: | 28th October |
Struggle for Freedom and Democracy Day: | 17th November |
Christmas Eve: | 24th December |
Christmas Day: | 25th December |
St. Stephen’s Day: | 26th December |
Pension and Healthcare
Czech Republic Pensions
In the Czech Republic, there is a mandatory state pension system funded by social security contributions from both employees and employers. The contribution rates, as a percentage of an employee’s gross salary, are as follows:
- Employees: 6.5% for pension insurance
- Employers: 21.5% for pension insurance
Healthcare in Czech Republic
The Czech Republic has a public healthcare system that provides basic medical services to its residents. The system is funded through social health insurance contributions from employees and employers, as well as government subsidies and general tax revenues.
IMMIGRATION
Work Permits in Czech Republic
In the Czech Republic, immigration is a regulated process, just like in any other country. To immigrate, you’ll generally need to apply for a specific type of visa or residency permit based on your purpose for moving, such as work, study, or family reunification.
Work visas typically require a job offer from a Czech employer, while student visas require enrollment in a recognized educational institution. Family reunification visas may be available to those who have family members living in the Czech Republic.
To obtain a residency permit, you’ll need to meet certain criteria, such as providing proof of sufficient financial resources, having valid health insurance, and passing a background check. Since the official language in the Czech Republic is Czech, learning the language may be helpful for navigating the immigration process and integrating into the local community.
Once you’ve obtained a residency permit, you’ll need to renew it periodically and adhere to the specific conditions tied to your permit. If you’re interested in becoming a permanent resident or even a citizen, you’ll have to follow additional steps and meet certain requirements, such as living in the Czech Republic for a specified number of years.
Wondering if expanding
in Czech Republic is right for you?
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The Benefits
Czech Republic Employer of Record Benefits
When you choose Agility EOR to expand in Czech Republic, we guarantee an Employer of Record Service tailored to the needs of your business
Compliance
We are on top of regulatory changes in Czech Republic so you can relax.
Cost reduction
Allow our economies of scale to work in your favour.
High Service Levels
You and your employees have a dedicated account manager.
Fixed Cost Pricing
We will agree our professional fees up front based on your needs - no nasty surprises!
Consolidated Invoicing & Payments
Make one monthly payment to cover all your tax, social and wages costs from one to one thousand employees.
Fast delivery
You can have 'boots on the ground' within days on our infrastructure.
Reduced Risk
All wage taxes are remitted in full to the Czech Republic authorities by professionals ensuring liabilities are met, giving you peace of mind.
Supply Chain Transparency
We only pay employees through local full employed solutions meaning Czech Republic payroll tax is paid on all funds.
Save Time and Money
Our expertise is at your disposal. The need for you to have internal HR, Payroll and admin staff is eliminated.