COUNTRY GUIDE
A short guide to building a dedicated offshore team in Czech Republic
Get startedPrague
Czech
10.49 million
GMT+2
130,000+
Czech Koruna (CZK)
$41.3 billion
$2.34+ billion
Prague
Czech
10.49 million
GMT+2
130,000+
Czech Koruna (CZK)
$41.3 billion
$2.34+ billion
The Czech Republic, nestled in Central Europe, is making significant strides in the global IT sector, fortified by an educational system that annually infuses the industry with 25,000 engineering graduates.
Prague, the nation's capital, is a beacon of the Czech Republic's technological advancement, pulsating with cutting-edge developments. The city is a nexus for tech events, startup accelerators, and R&D operations, attracting a diverse talent pool proficient in various technological disciplines, from advanced software solutions to IT consulting.
The Czech IT sector is robust, demonstrated by a healthy CAGR of 3.7% and a landscape of over 7,700 software companies, underscoring the country's expanding role as a significant IT service provider on the international scene.
The Czech Republic's strategic location in Europe, combined with its competitive costs and innovation-centric culture, is swiftly solidifying its status as a preferred destination for businesses seeking skilled software development services. The country's commitment to technological evolution, backed by a potent workforce and a dynamic IT market, marks the Czech Republic as an enticing hub for technology investments and partnerships.
Payroll Cycle
In the Czech Republic, the payroll cycle typically operates on a monthly basis. Salaries should be disbursed consistently and payment is made 1 time per month according to the country law.
Employer Taxes
33.80%
Overtime Pay
Any work conducted beyond the standard weekly hours qualifies as overtime, as stipulated by the employment contract or collective agreement. Overtime is capped at an extra 8 hours weekly and 150 hours annually.
Overtime work exceeding 40 hours a week is compensated at a rate of 125% of the employee's standard pay. Work during nights or weekends warrants an extra 10% in pay, while employees working on public holidays receive either an additional 100% in their pay or a substitute day off.
Paid Leave
In the private sector, full-time employees have the right to 4 weeks (20 working days) of paid leave annually.
However, those employed in the public sector, along with certain other professions, are allotted 5 weeks (25 working days) of paid leave each year, while teachers are granted 8 weeks. Additional leave entitlements are specified in the employment contract or collective agreement.
After completing 60 days of service with the same employer, employees gain the eligibility to request leave. Employers, however, have the discretion to approve or reject leave applications based on business requirements.
Ideally, employees should utilize all leave within the designated year. Nonetheless, under certain circumstances, employees may be allowed to transfer a segment of their unused leave to the following year.
Sick Leave
Employers are required to cover employee compensation for the initial 14 days of illness. From the 15th day onward, the Government takes over the responsibility, providing sick pay. This pay is calculated at 60% of the employee's average earnings for the first 30 days (including the days covered by the employer), 66% from the 31st to the 60th day, and 72% from the 61st day forward. Employees can avail themselves of sick leave for up to a total of 380 calendar days.
It's incumbent upon employers to obtain sickness certificates from their employees, keep pertinent records, and submit all necessary reports to the Social Security authorities.
Public and Provincial Holidays
Notice Period
In the Czech Republic, the notice period is required to begin on the first day of the month after the notice has been received and should last for a minimum of two months. This duration can be lengthened through a written agreement between the employer and the employee.
13th Month Bonus
While the Czech Republic's laws don't mandate the payment of a 13th-month salary, it's not uncommon for employers to provide a 13th-month salary bonus, usually dependent on performance.
Setting up a separate business entity in the Czech Republic where you plan to assemble a team can be laborious and result in significant legal expenses.
Simultaneously, understanding Czech labor laws and meeting employee expectations can be intricate and demanding. It's further complicated by the need to obtain accurate and up-to-date employment information for the Czech Republic. Furthermore, managing contracts and maintaining invoices via email and spreadsheets can lead to disorganization and mistakes.
In this context, compliance is paramount, and it's crucial to adhere to Czech regulations, particularly concerning taxes and legal issues.
ALLSTARSIT simplifies this process by providing a comprehensive solution for identifying and hiring employees in the Czech Republic, managing HR and payroll, and ensuring compliance is automated. We make the process straightforward and free of complications.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Effortlessly Access Expert Tech Support for Your Projects
Our Tech Support service provides companies worldwide with access to the best technical experts tailored to their specific project needs. Whether you require troubleshooting, maintenance, or specialized assistance, we ensure that you have the right professionals on hand to support your endeavors effectively.
Maximize Your Customer Satisfaction Level with Our Customer Support Service
Access tailored customer care solutions for your business needs. Our expert team is dedicated to addressing inquiries, resolving issues, and delivering personalized assistance. Say goodbye to challenges and hello to exceptional customer care with us.
Contact us, and we’ll help you hire the best tech talent in Czech Republic