Czech Republic: Pay and benefits

Original and updating authors: Jaroslav Škubal, Tereza Erényi and Daniel Vejsada, PRK Partners Prague

See the legal services provided by the authors of International > Czech Republic, including any discounts/offers for subscribers.

Summary

• Wages must be based on the complexity, responsibility and difficulty of the work performed, and must be agreed or otherwise determined before the employee starts work. (See General)
• Wages must be paid in Czech currency, and in accordance with various rules on the frequency and method of payment. (See Payment of wages)
• Deductions from wages are permitted only for specified reasons and are subject to limits. (See Deductions)
• All employees of the same employer are entitled to receive equal pay for equal work or work of equal value. (See Equal pay)
• There is a statutory minimum wage that applies to all employees, irrespective of age or experience. (See Minimum wages)
• The pension system consists of two "pillars", which are a mandatory state retirement pension and supplementary private pensions insurance. (See Pensions)
• Income tax on employment income must be withheld by the employer at source. Employers and employees must pay contributions to the state social insurance system and to the public health insurance scheme. (See Income tax and social security)
• During sickness absence, employees are entitled to sick pay from the employer from the first working day of absence to the 14th calendar day of absence, and to state sickness benefits from the 15th calendar day of absence. (See Sick pay)
• It is common for employers to offer employees various benefits in kind in addition to the salary. (See Benefits in kind)