Labour Law in the Czech Republic

Labour law in the Czech Republic is governed primarily by the Czech Labour Code (zákoník práce). It applies to employment relationships subject to Czech law regardless of the nationality of the employee or employer. Understanding the main rules is essential for companies hiring staff in the Czech Republic and for employees working under Czech employment contracts.

Labour Law in the Czech Republic: Key Rules for Employers and Employees

Types of Employment Contracts

The standard employment relationship is generally concluded for an indefinite period. Fixed-term employment is also permitted, subject to statutory limits.

• A fixed-term employment relationship may generally be agreed for a maximum of 3 years.
• Between the same employer and employee, it may normally be repeated or extended no more than twice.
• If at least 3 years have passed since the end of the previous fixed-term employment relationship, earlier fixed-term periods are generally no longer taken into account.

Specific exceptions may apply, including certain replacement situations. Czech law also provides for more flexible arrangements such as DPP (Dohoda o provedení práce) and DPČ (Dohoda o pracovní činnosti) for limited or part-time work.

Probationary Period

A probationary period must be agreed in writing no later than the day the employment relationship begins.

• Regular employees: up to 4 consecutive months
• Managerial employees: up to 8 consecutive months
• Fixed-term contracts: the probationary period cannot exceed half of the agreed duration of the employment relationship

The probationary period is extended by working days on which the employee does not work a full shift due to certain obstacles to work, annual leave or unauthorised absence.

Minimum Wage in 2026

From 1 January 2026, the Czech minimum wage is CZK 22,400 gross per month, or CZK 134.40 per hour for a standard 40-hour working week.

The minimum wage is determined under a statutory mechanism linked to the forecast average wage in the Czech economy.

Termination of Employment

An employment relationship may end by mutual agreement, notice, immediate termination, termination during the probationary period or expiry of a fixed-term contract.

As a general rule, the notice period is at least 2 months. For notices delivered from 1 June 2025, the notice period normally begins on the day the notice is delivered to the other party and ends on the corresponding day of the relevant month.

For certain statutory grounds for termination by the employer, a shorter minimum notice period may apply.

Non-Compete Agreements

Czech labour law allows employers and employees to agree on a post-employment non-compete clause for a maximum period of one year.

During the period in which the employee is bound by the restriction, the employer must provide financial compensation of at least 50% of the employee’s average monthly earnings for each month of the non-compete obligation.

Employment Contracts and Related Guidance

For more information about contract types, fixed-term employment, DPP, DPČ and probationary periods, see our guide to employment contracts in the Czech Republic.

Assistance with Czech Labour Law

If your company is hiring employees in the Czech Republic or you need assistance with employment documentation, we can help you review the practical requirements applicable to your situation.

See our Czech Republic company FAQ or contact us to discuss your requirements.

Social Security and Health Insurance Contributions

In addition to gross salary, employment in the Czech Republic involves mandatory social security and health insurance contributions. These contributions are divided between the employer and the employee and form an important part of the overall cost of employment.

• Employer: generally 24.8% of the employee’s assessment base for social security, plus 9% for public health insurance, resulting in a standard employer contribution of approximately 33.8% of gross salary. Higher social security rates may apply to certain high-risk occupations and selected emergency service roles.
• Employee: 7.1% for social security plus 4.5% for public health insurance. These amounts are normally deducted directly from the employee’s gross salary by the employer.

Official information on Czech social security contributions is available from the
Czech Social Security Administration (ČSSZ).
Information on public health insurance contributions and employer obligations can also be found on the
VZP health insurance portal.

Personal income tax is calculated separately under Czech tax rules. The employee’s final net salary therefore depends on gross remuneration, social security and health insurance contributions, income tax, and any applicable tax allowances or credits.

Further information on Czech personal income taxation is available from the
Czech Financial Administration.

For social security contributions, an annual maximum assessment base applies. In 2026, the maximum assessment base is CZK 2,350,416, corresponding to 48 times the statutory average wage. Once this ceiling is reached, additional social security contributions are generally no longer calculated on employment income above the limit. No equivalent annual maximum assessment base applies to Czech public health insurance.

For foreign employers and international companies hiring employees in the Czech Republic, correctly calculating these employment costs from the outset is essential for payroll planning and personnel budgeting. Businesses should also consider whether EU social security coordination rules apply when employees work in more than one country or remain insured in another EU or EEA state.