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Overview of Czech Republic

The Czech Republic lies in the middle of central Europe and its capital is Prague. It is also known as the castle capital of the world as the Czech Republic is home to well over 2000 castles. It has a population of 10.69 million and is ranked under the top 10 safest countries in the world. The Czech Republic is the most stable and prosperous of the post-communist states of eastern Europe and has one of the lowest unemployment rates in all of Europe. Czechs are highly educated people with around 90% of the adult population having completed secondary education. Czech is the official language of the Czech Republic which in the world ranks as the second hardest language to learn. The Czech Republic also ranks within the top 10 for the highest internet speed in the world.

In the Czech Republic, one should avoid mixing business with pleasure. Business is taken seriously and one should approach it accordingly. Punctuality is vital when attending meetings. First meetings will be about getting to know each other and will usually be conducted by a middle man, not directly with the decision making parties. Be patient when dealing with Czechs.

Currency of Czech Republic

  • Czech Koruna

Health Insurance and the Social Security system of Czech Republic

Healthcare is mandatory in the Czech Republic, be it through the public or a private provider. Anyone working for a Czech employer is automatically insured through the public healthcare system and pays their monthly contributions.

The standard of the Czech healthcare system is high and has been ranked as one of the best in Europe.

Employer cost of Czech Republic

The cost for an employer to hire someone in the Czech Republic is a plus of 33.80% to the gross salary.

Salary and bonuses of Czech Republic

Regular employees are paid monthly.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in Czech Republic

  • January 1st – New Year’s Day
  • moveable – Good Friday
  • moveable – Easter Monday
  • May 1st – Labour Day
  • May 8th – Liberation Day
  • July 5th – Saints Cyril and Methodius Day
  • July 6th – Jan Hus Day
  • September 28th – Czech Statehood Day
  • October 28th – Czech Independence Day
  • November 17th – Struggle for Freedom and Democracy Day
  • December 24th – Christmas Eve
  • December 25th – Christmas Day
  • December 26th – Boxing Day

Working hours in Czech Republic

Office hours are from 8.00am to 4:30pm, Monday to Friday.

A regular work week is 40 hours at 8 hours a day.

Overtime can only be done as an exception and is not allowed to exceed 150 hours a year. If there is an agreement between an employer and the employee, overtime cannot exceed 8 hours a week for 26 consecutive weeks.

Overtime is paid with 125% of the regular salary or is given as time off.

Vacation in Czech Republic

The Czech Republic has a minimum of 20 vacation day per year.

Sick Leave in Czech Republic

An employee who pays the sickness contribution insurance is eligible for sick pay from his first day of work onwards. From the first until the 14th day of illness, the employer pays the sick benefits. From the 15th day onwards, employees receive their sick benefits from the sickness insurance. One can receive the sick benefits from the insurance for a maximum of 380 days.

In the first 30 days, the employee receives 60% of the daily assessment base, from the 31st to the 60th day the employee receives 66% of the daily assessment base and from the 61st day onwards the employee receives 72% of the daily assessment base. The daily assessment base is calculated using the employee’s average wage over the past 12 months.

Termination/Severance in Czech Republic

Terminating an employee must always have a just cause such as the employer reorganization, a change in the employee’s health, the employee is lacking the legal requirements to perform the scope of work or lacks the capability or due to serious misconduct.

The notice period for a termination is 2 months and starts the first day of the month following the delivery of the notice to the employee. The termination must be given to the employee in writing and must state the specific reasons for the termination.

For an employee whose contract is terminated due to reorganization or by agreement, the employee is entitled to severance pay. If the employee has worked for the company for 1 year or less, the severance pay s one months wage. If the employee has worked for 2 years, the severance pay is 2 months wage. If the employee has worked for the employer for more than 2 years, the severance pay is 3 months wages.