How to Find a Job in the Czech Republic
The Czech Republic is one of the countries in the European Union that demands labor migrants the most. The level of salaries remains high despite the recession in the Czech economy in 2023.
At the beginning of 2024, the Czech Republic showed a positive GDP growth of 0.4%. According to the IMF report, by the end of 2024, Czech GDP will reach 1.2%, which indicates significant growth compared to 0.4% in 2023. This recovery is expected to stabilize further, with projected growth rates of 2.5% in subsequent years.
However, the economic situation does not attract only expats. In this article, we will look at the advantages of living and working in the country and the peculiarities of employment for foreigners.
Benefits of Working and Living in the Czech Republic
The Czech Republic is known for its high level of education. The country attracts students worldwide with its famous educational institutions, such as Charles University, which is considered the oldest in Europe. The country is also developed in different sectors, which allows the Czech labor market to offer a wide range of vacancies for job seekers. And that is not all:
- English-speaking environment. The large influx of foreigners has made English an intermediary language. English knowledge is sufficient for working and living in the Czech Republic. However, Czech is used much more often in everyday life, and its knowledge will be an advantage.
- Diversity of opportunities. The country has developed industry, agriculture, financial, and other sectors, which increases the chances of finding factory, IT, seasonal, and hotel jobs in the Czech Republic for foreigners.
- Staff shortage. In recent years, the Czech Republic has experienced a labor shortage. It has affected the demand for labor specialties in agriculture and industry. The IT sector is also experiencing a need for more developers, cybersecurity specialists, AI development and training specialists, data scientists, and others.
- Education. The Czech Republic has many world-class educational institutions. According to statistics, every fifth student in Czech universities is a foreigner. In 2023–2024, the total number of students increased by 6%, 5.2% of whom were foreigners. This is due not only to the level of education but also to its accessibility. State universities teach foreigners the Czech language for free and charge for various degrees.
- Labor migration. Czech employers, especially large companies, are willing to provide bonuses for foreign workers. The most common bonus is housing provision; however, the employee often makes housing payments. For example, a company provides housing for an employee and a salary of CZK 20,000, of which CZK 5000 is spent on rented accommodation.
- Quality of life. The Czech Republic has a high standard of living and invests significant budget funds in maintaining and developing quality medicine, services, education, and infrastructure.
Specifics of Employment in the Czech Republic
In the Czech labor market, 15% (800,000) of the workforce comprises foreigners. Some quotas limit the number of foreign workers in the country. The Czech government plans to increase the number of foreign workers by 20,000 annually to address labor shortages. The Chamber of Commerce, representing 15,000 companies, estimates that Czech employers seek up to half a million workers. Thus, the share of foreigners employed in the Czech labor market may reach 22–25% in the long term.
The Czech Republic still has one of the lowest unemployment rates in Europe. This means that almost every job seeker finds a job in the Czech Republic because, with a low unemployment rate, the competition is not for a vacancy among candidates but for an employee among employers.
Contract types:
- Permanent employment contract (Pracovní smlouva na dobu neurčitou). This is the most common type of employment contract. It includes job security and benefits such as paid leave, health insurance, and social security contributions. It does not have a fixed end date.
- Fixed-term employment contract (Pracovní smlouva na dobu určitou). Contract for a specified period, typically up to three years. Labor law limits the number of renewals to two, but the employer may exceed the limit in exceptional cases. For example, when a severe labor shortage causes production facilities to shut down or crops to fail. Fixed-term contracts offer similar benefits to permanent contracts but with a defined end date.
- Part-time employment contract (Pracovní smlouva na zkrácený úvazek). Part-time contracts are used for employees who work fewer hours than the standard full-time schedule. These contracts include benefits based on the number of hours worked.
- Agreement to complete a job (Dohoda o provedení práce). It is used for short-term or specific tasks, with a limit of 300 hours per year per employer. It is suitable for freelance or temporary work.
- Agreement to perform work (Dohoda o pracovní činnosti). DPČ contracts are used for part-time work, with an average of 20 hours per week.
Initially, agreements restricted the employee in certain financial issues. However, as of 2024, the government amended the employment law in the Czech Republic. According to it, employees working under an employment contract are entitled to paid holidays and bonuses. Bonuses are mandatory for work during holidays or weekends, night shifts, and under difficult or hazardous conditions. The amendments oblige the employer to provide the employee with the work schedule at least three days in advance.
Part-time work is less than 40 hours per week and may be permanent or temporary. It is generally more stable and provides more job security due to benefits such as health insurance and paid time off. This type of employment is most often practiced in the IT sector. For example, some popular part-time jobs in Prague are for software developers. Part-time professionals typically work flexible hours on a regular or irregular basis.
Seasonal work is only available during certain times of the year, such as during the summer or winter holiday seasons. Seasonal workers are typically hired temporarily and are only employed for the season.
However, seasonal work can be a good option for those looking for flexible work arrangements or who want to earn extra money during a specific time of the year.
Most in-demand Jobs in the Czech Republic
In 2023–2024, the most in-demand jobs in the Czech Republic span various sectors. The IT sector, driven by the ongoing digital transformation and growth in tech startups, occupied 28% of job vacancies. Due to the industrial base and export-oriented economy, manufacturing accounts for 20% of the Czech Republic's vacancies. The rest are 18% logistics and 16% sales and marketing.
IT sector:
- IT analysts;
- software developers;
- cybersecurity experts.
Transport and logistics:
- logistics coordinators;
- supply chain managers;
- remote tracking specialists;
- drivers.
Healthcare:
- doctors;
- nurses;
- medical technicians.
Sales and marketing:
- sales managers;
- marketing specialists;
- customer service representatives.
Administrative support:
- office managers;
- executive assistants;
- clerks.
Front office and HR:
- receptionists;
- hiring specialists;
- recruitment specialists.
Education:
- teachers;
- international exchange specialists.
The Czech Republic's English teaching jobs should be mentioned separately. The lack of staff in the education sector makes this position a good opportunity to work in the Czech Republic for foreigners. Initially, the main requirement was a TEFL certificate and a bachelor's degree, but now it is enough to be a native speaker and have a teaching certificate. Experience in teaching is a plus. Teachers are in demand in the following areas:
- Language Schools
- Public Schools
- Private Tutoring
- Corporate Training
- Summer Camps
Remote work is also possible in the Czech Republic. The requirements for Czech remote jobs depend on the particular company or employer, but most often, knowledge of English is the most important skill. The most logical requirement is the availability of technical means to perform remote activities. Companies with international operations most often offer such positions.
Remote jobs in the Czech Republic:
- Information Technology: software developer, web developer, systems administrator, IT support specialist, data analyst.
- Digital marketing: SEO specialist, content writer, social media manager, graphic designer.
- Customer service: customer service representative, technical support specialist, call center agent.
- Finance: accountant, financial analyst, bookkeeper, payroll specialist.
- Project management: project manager, product manager, scrum master.
Factory jobs are an important employment sector in the Czech Republic. The country's strong industrial base, particularly in manufacturing, automotive, and electronics, suffers from a shortage of experienced workers. As a result, employers are willing to hire foreigners and offer them substantial benefits, such as housing and relocation assistance.
Factory jobs in the Czech Republic for foreigners:
- production line workers;
- technicians and machine operators;
- warehouse staff;
- quality control specialists;
- supervisory and managerial roles.
Finding a Job in the Czech Republic
You can use specialized websites to find a job in the Czech Republic. However, it should be considered that most of the vacancies on them are in Czech. For foreigners, it is better to use large companies' websites, agencies' services, or labor exchanges.
Jobs search websites:
- Profesia.cz
- Volnamista.cz
- Cz.indeed.com
- Jobs.cz
- Expats.cz
- Cz.jobrapido.com
- Prace.cz
- Dobraprace.cz
- Upcr.cz
You can use the websites and accounts of large companies to search for vacancies in the Czech Republic. Conveniently located in the center of Europe, many large companies have offices in the country:
- Amazon
- IBM
- Microsoft
- T-Mobile
- Vodafone
- The Johnson & Johnson
- Kofola
- Skoda Auto
- Siemens
- Honeywell
- Tasco
It is also worth checking local company websites for vacancies.
Labour Exchanges
The Czech Republic has a network of labor exchanges (Úřad práce) that helps find jobs for local and foreign workers. The main difference between labor exchanges and regular job search sites in the Czech Republic is that most vacancies are translated into English. It is a hybrid between employment agencies and job sites because labor exchange specialists help applicants find jobs. So the Czech expats sometimes call it the “Czech Republic work permit agency.” Each office of “Úřad práce” has its own website, but the central one is uradprace.cz/web/en. The following documents are required for registration:
- ID card;
- employment record book;
- documents on education and qualifications;
- a certificate of income for the last three months.
After registration, the unemployed are assigned an advisor who helps them in their job search. He provides information about careers in the Czech Republic, arranges interviews with employers, and helps write a resume and cover letter. Unemployed persons registered in Úřad práce can receive unemployment benefits. The amount depends on the salary and length of service.
EURES is a network of employment services that helps people find jobs in other EU countries. It is also represented in the Czech Republic and provides english-speaking jobs in the Czech Republic. EURES provides the following services:
- searching for vacancies in other EU countries;
- assistance in writing a CV and cover letter;
- organization of interviews with employers;
- providing information about the labor market in other EU countries.
To use EURES services, register on the network's website. After that, you can access the database of vacancies in the Czech Republic and other EU countries and information about the labor market in these countries. EURES also organizes job fairs and events that help the unemployed find jobs in other EU countries.
Employment Agencies
Agencies help job seekers prepare resumes and documents and navigate bureaucratic procedures. The shortage of qualified personnel has prompted job seekers and employers to turn to recruitment agencies. Employers are willing to pay for recruitment in exchange for a guarantee of quality workers. However, it is best to clarify the payment issue for services at the agency.
- Grafton Recruitment CZ.
- Hays CZ.
- ManpowerGroup CZ.
- Adecco CZ.
- Randstad CZ.
Working Conditions in the Czech Republic
The Czech Republic offers pleasant working conditions. The main obstacle is the language. Unlike in Central European countries, the national language plays a dominant role in the Czech Republic. The country's government supports language assimilation programs for migrant workers. Therefore, Czech employers and universities offer Czech language courses for employees and students from other countries.
Required Languages for Employment
About 10% of the Czech Republic's population are expats. English is, therefore, widely used, and in multinational companies and the IT sector, it is often the working language. This makes these sectors the most favorable for jobs in the Czech Republic for English speakers. However, knowledge of the Czech language is essential for most positions, especially those that require direct interaction with the local population, such as retail, healthcare, and public services. Proficiency in the local language opens up Czech jobs for foreigners.
Other languages may include German due to geographic proximity and economic ties with this country. It is also possible to find a job opportunity with a language-specific requirement.
Diploma and its Nostrification
Nostrification is recognizing a foreign diploma as equivalent to a Czech diploma. A recognized diploma is mandatory for many professional roles in the Czech Republic, especially in healthcare, education, engineering, and law.
Procedure:
- A person applies to the relevant Czech authority, typically the Ministry of Education, Youth, and Sports, or the appropriate regional authority.
- The applicant must provide diploma transcripts and sometimes additional documents such as course descriptions and syllabi.
- The authorities will assess whether the applicant's qualifications match the Czech education standards. This might involve comparing course content and duration.
- If the diploma is recognized, the applicant will receive a nostrification certificate. If not, applicants might need to take additional exams or courses to meet the requirements.
Other Czech Republic work visa requirements may include health checks, especially in healthcare and food services. Background checks in finance, education, and security may also be required to ensure the candidate's reliability and integrity.
Work Permit in the Czech Republic
Citizens of the European Union (EU), the European Economic Area (EEA), and Switzerland have free access to the labor market in the Czech Republic. This means they can work in the Czech Republic without a work permit or authorization. This category also includes family members of these citizens. Foreigners from so-called third countries need a work permit:
- Employee card. It is a type of long-term residence permit. It is both a work permit and a residence permit, valid for jobs in Czechia that require medium to high qualifications. Applicants must have a job offer that meets certain criteria, such as a salary at least 1.2 times the Czech Republic minimum wage. Initially issued for up to 2 years, it can be renewed. The application process includes submitting a contract, proof of qualifications, health insurance, and other personal documents.
- Czech EU blue card. It also combines residence and work permit, but only for highly qualified workers. It requires a higher education qualification (a university degree) and a job offer with a salary of at least 1.5 times the average gross annual salary in the Czech Republic. It has a similar application process and validity period as the Employee Card but with stricter criteria regarding education and salary.
- Intra-company transferee card. ICT is used to transfer an employee to the Czech branch of the company. For example, if the head office of a large company is in Sweden but its branch is in Prague. A transfer Card would be sufficient to transfer an employee to Prague without any other permits but with special requirements. The employee must have worked for the company for at least six months before the transfer, and the position in the Czech Republic must be managerial. Typically, it is valid for the transfer duration, up to 3 years for managers and specialists and one year for trainees.
- Seasonal work permit. The seasonal work permit is for temporary work in sectors such as agriculture, forestry, and tourism. Its main requirements are a job offer for seasonal work and proof of accommodation. The permit is valid for the duration of the employment contract, up to 6 months.
Czech Republic Work Visa
A visa is a permit that allows a foreigner to enter and temporarily stay in the territory of the Czech Republic/Schengen area. However, issuing a visa does not automatically entitle the holder to enter it. Upon entry, visa holders must meet the entry requirements specified in the Schengen Border Code.
The authorities may ask visa holders to provide documentation on accommodation, finances, return tickets, etc. Failure to notify the Consulate of any changes in travel arrangements after the application has been submitted or after the visa has been issued may result in the revocation or cancellation of the visa.
Visas types:
- Long-term visa for business purposes (Dlouhodobé vízum za účelem podnikání) — this visa is for individuals intending to engage in business activities. It acts as a Digital Nomad Visa analog in the Czech Republic and is the most suitable visa type for self-employed. It is valid for up to 1 year, with the possibility of an extension. A long-term visa is also suitable for the following:
- medical treatment;
- cultural purposes;
- sport activities;
- official (political) visits;
- family reasons;
- trainings, internships, and volunteering;
- working weekends;
- seasonal employment;
- other.
- Short-term visa for employment purposes (Kratkodobé vízum za účelem zaměstnání). This visa is for short-term employment, typically up to 90 days within 180 days. It was issued as a short-term visa for:
- tourism;
- medical treatment;
- business;
- culture;
- sport;
- visit (invitation);
- official (political);
- study, internship;
- scientific reaserches;
- seasonal employment;
- other.
- Schengen visa (Type C). Schengen visa is valid on the territory of the Czech Republic in the same way as a short-term visa.
General requirements for the Czech Republic work visa:
- Valid Passport.
- Completed application form specific to the type of visa or permit being applied for. It is available from Czech embassies, consulates, or the Ministry of the Interior's website.
- Recent passport-sized photograph.
- Proof of accommodation. Lease agreement, letter from a hotel, or a notarized letter from a host.
- Health Insurance valid in the Czech Republic.
Specific requirements for different types of work visas:
- A long-term visa for business purposes requires a detailed plan outlining your business activities, proof that you have sufficient funds to support your business and stay, a criminal record certificate, and a medical report.
- A short-term visa for employment application must detail the nature and duration of the employment. Proof of professional qualifications for a job position (if needed). A criminal record certificate and medical report.
- Schengen Visa (Type C) for Short-Term Business Trips. An invitation letter from the Czech company detailing the purpose of the visit. Travel health insurance that covers at least €30,000. Proof that you can support yourself during your stay and detailed travel plans.
Czech Republic work permit processing time:
- employee card, EU blue card, intra-company transferee card: up to 90 days;
- seasonal work permit: up to 60 days;
- long-term visa for business purposes: up to 90 days;
- short-term visa for employment: up to 15 days;
- schengen visa for short-term business trips: up to 15 days.
Average Salary in Czech Republic
As of January 1, 2024, the basic minimum wage rate in the Czech Republic increased by CZK 1600 (CZK) to CZK 18,900. According to the Czech Statistical Office, the average monthly gross nominal wage* in Q4 2023 amounted to CZK 46,013, 6.3% higher than in the same period in 2022. The statistical office also notes that consumer prices rose by 7.6% over the period, causing the average salary in the Czech Republic to fall by 1.2% in real terms.
Average monthly gross nominal wages by quarter in Czech crowns (CZK) and euros (EUR)
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
|
Average salary (CZK) |
41,338 |
43,305 |
42,678 |
46,013 |
Average salary (EUR) |
1738 |
1835 |
1768 |
1877 |
* — The average monthly gross nominal salary is the share of salary funds (including overtime bonuses, bonuses, compensation payments, etc.) per employee per month.
The median salary* at the end of Q4 2023 was CZK 39,685 (EUR 1619), an increase of 6% compared to Q4 2022. Men in the Czech Republic earn 15% more than women. The median salary for men in Q4 2023 was 42,340 CZK (1727 EUR), and 36,842 CZK (1503 EUR) for women.
Median salary by a quarter in Czech crowns (CZK) and euros (EUR)
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
|
Median wage (CZK) |
34,803 |
36,911 |
37,509 |
39,685 |
Median wage (EUR) |
1463 |
1564 |
1554 |
1619 |
Median wage (CZK) for men |
37,763 |
39,951 |
40,172 |
42,340 |
Median wage (EUR) for men |
1588 |
1693 |
1664 |
1727 |
Median wage (CZK) for women |
31,912 |
33,950 |
34,721 |
36,842 |
Median wage (EUR) for women |
1342 |
1439 |
1439 |
1503 |
- — The median represents the amount of a worker's wage in the middle of the wage distribution; half of the wage values are below the median, and the other half are above it.
At the end of Q4 2023, the highest wages were in Information Technology, CZK 79,156 (EUR 3229), followed by Finance and Insurance, CZK 70,319 (EUR 2869). The lowest wages were earned in hospitality and catering, CZK 26,693 (EUR 1089).
Average gross salary by type of activity in the Czech Republic (salary per month in crowns (CZK) and euros)
Economic activities |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
||||
CZK |
EUR |
CZK |
EUR |
CZK |
EUR |
CZK |
EUR |
|
Agriculture, forestry and fisheries |
30,541 |
1284 |
33,440 |
1417 |
34,817 |
1443 |
37,501 |
1530 |
Industry |
40,768 |
1714 |
43,492 |
1843 |
41,816 |
1733 |
45,201 |
1844 |
Manufacturing |
39,739 |
1671 |
43,042 |
1824 |
41,339 |
1713 |
44,371 |
1810 |
Production and distribution of electricity, gas, heat and air conditioning |
79,221 |
3331 |
62,995 |
2670 |
61,584 |
2552 |
69,336 |
2828 |
Water supply; sewerage, waste management and rehabilitation works |
35,905 |
1510 |
38,762 |
1643 |
37,655 |
1560 |
43,239 |
1764 |
Construction |
34,363 |
1445 |
36,963 |
1567 |
37,458 |
1552 |
38,930 |
1588 |
Wholesale and retail trade; repair and maintenance of motor vehicles |
39,863 |
1676 |
40,317 |
1709 |
39,961 |
1656 |
42,259 |
1724 |
Transportation and storage |
36,703 |
1543 |
38,615 |
1637 |
39,374 |
1631 |
41,604 |
1697 |
Hospitality and Catering |
24,446 |
1028 |
25,498 |
1081 |
26,216 |
1086 |
26,693 |
1089 |
Information technologies |
78,503 |
3301 |
75,522 |
3201 |
77,275 |
3202 |
79,156 |
3229 |
Finance and Insurance |
75,539 |
3176 |
76,664 |
3249 |
67,240 |
2786 |
70,319 |
2869 |
Real Estate |
38,912 |
1636 |
39,604 |
1679 |
37,690 |
1562 |
39,380 |
1606 |
Professional, scientific and technical activities |
52,218 |
2196 |
52,936 |
2244 |
51,571 |
2137 |
56,461 |
2303 |
Administrative activities |
29,648 |
1247 |
30,123 |
1277 |
30,379 |
1259 |
30,727 |
1253 |
Public administration; compulsory social security |
43,768 |
1840 |
46,053 |
1952 |
45,091 |
1868 |
48,926 |
1996 |
Education |
37,608 |
1581 |
41,685 |
1767 |
41,801 |
1732 |
51,327 |
2094 |
Health care and social support |
43,294 |
1820 |
46,007 |
1950 |
47,309 |
1960 |
50,636 |
2066 |
Arts, entertainment and recreation |
35,441 |
1490 |
36,600 |
1551 |
36,524 |
1513 |
40,369 |
1647 |
Other |
30,725 |
1292 |
32,008 |
1357 |
32,217 |
1335 |
34,446 |
1405 |
Among the regions, the highest wages are traditionally for job opportunities in Prague. In Q4 2023, the average monthly gross nominal salary in Prague was CZK 55,039 (EUR 2245). Data on salaries in other regions are presented below.
Average gross monthly salary by region in Czech crowns (CZK) and euros (EUR)
Region |
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
||||
CZK |
EUR |
CZK |
EUR |
CZK |
EUR |
CZK |
EUR |
|
Prague |
52,814 |
2221 |
52,883 |
2239 |
51,925 |
2151 |
55,039 |
2245 |
Central Bohemian Region |
40,768 |
1714 |
45,477 |
1927 |
42,990 |
1781 |
46,535 |
1898 |
South Bohemian |
37,351 |
1570 |
39,279 |
1665 |
39,083 |
1619 |
42,761 |
1744 |
Pilsen |
38,835 |
1633 |
40,986 |
1737 |
41,220 |
1708 |
44,231 |
1804 |
Karlovy Vary |
35,010 |
1472 |
37,072 |
1571 |
37,164 |
1540 |
40,559 |
1655 |
Ústecký kraj |
37,940 |
1595 |
39,589 |
1678 |
39,664 |
1643 |
43,165 |
1761 |
Liberec |
36,685 |
1542 |
39,143 |
1659 |
38,769 |
1606 |
41,911 |
1710 |
Královéhradecký kraj |
37,461 |
1575 |
41,249 |
1748 |
39,687 |
1644 |
43,079 |
1757 |
Pardubice |
36,255 |
1524 |
38,275 |
1622 |
38,211 |
1583 |
41,802 |
1705 |
Vysočina |
37,670 |
1584 |
39,382 |
1669 |
39,315 |
1629 |
42,623 |
1739 |
South Moravian |
40,146 |
1688 |
41,912 |
1776 |
41,812 |
1732 |
45,569 |
1859 |
Olomouc |
36,506 |
1535 |
38,488 |
1631 |
39,233 |
1626 |
41,880 |
1708 |
Zlín Region |
36,653 |
1541 |
39,019 |
1654 |
38,596 |
1599 |
42,318 |
1726 |
Moravian-Silesian |
37,094 |
1560 |
39,108 |
1658 |
38,957 |
1614 |
42,068 |
1716 |
Taxes in Czech Republic
The taxation process in the Czech Republic is not favorable. Although there is no separate capital gains tax in the Czech Republic, the combination of accommodation expenses and taxes may greatly affect employees' income. A part of the employee's taxes also falls on the employer, which makes the tax burden a bit lighter.
Personal income tax in the Czech Republic is relatively simple. The standard rate is 15% for employees whose income does not exceed 36 times the Czech Republic average wage (€65,000) and 23% for incomes above that. This tax applies to wages, business income, rental income, and other sources. Certain deductions and allowances are available, such as for dependents, mortgage interest, and charitable donations.
Income tax refunds in the Czech Republic are possible if the employer has incorrectly calculated the amount of income tax to be withheld from the employee's wages or if the employee has overpaid income tax during the tax year. This can happen, for example, if the employee received a one-time large income (say, a bonus or compensation for unused vacation) or if the employee's circumstances have changed (for example, becoming a parent or taking on dependents).
To recover the overpaid income tax, the employee must submit a tax return (daňové přiznání) to the tax office (finanční úřad) in the place of his/her residence. The deadline for filing the tax return is March 31, the year following the tax year under review. However, if the employee submits the tax return electronically, the deadline is extended to May 1.
Corporations in the Czech Republic are subject to a corporate income tax on their worldwide income. The corporate Czech income tax rate is 19%. It includes profits from business activities, dividends, interest, and royalties. Investment funds may benefit from a reduced tax rate of 5%. There is no corporate tax rate in the Czech Republic on dividends:
- Paid by a subsidiary (EU and non-EU tax residents).
- Gain from the sale of an interest in a subsidiary (EU and non-EU tax residents).
VAT
The VAT rate in the Czech Republic is 21%. It applies to most goods and services. The reduced 12% VAT rate applies to certain types of goods, such as food and baby food, animal feed, certain dairy drinks, plants, medical goods, or pharmaceutical products.
It also applies to certain types of services, such as water and sewerage, public transportation, including non-scheduled passenger transportation, accommodation and catering services, or admission tickets to cultural and sporting events.
Mandatory VAT registration is required for taxable persons with a turnover of CZK 2,000,000 (€81,200) in the previous 12 consecutive calendar months. Voluntary registration is possible for entities below the mandatory threshold. Foreign taxable persons must register for long-distance sales to non-registered individuals in the Czech Republic if the value exceeds €10,800.
Social Security and Health Insurance Contributions
The social security tax includes pension, sickness, and unemployment insurance. The employee contributions include 4.5% for health insurance and 7.1% for social security of the gross salary. The employer pays 21.5% of the employee's gross salary for health insurance, 2.1% for social security, and 1.2% for unemployment insurance.
The health insurance tax rate for employees is 4.5%, for a total of 11.6%. The employer pays 9% of this tax, for a total payment of 33.8%. So, without using a calculator, we may say that the total Czech salary tax for an employee is 26.6%. The self-employed and entrepreneurs pay full social security and health insurance contributions for 45.4% of their income.
Illegal Employment
The Czech Labor Inspectorate regularly conducts inspections and raids to detect illegal employment. It also relies on individuals who report suspicions of illegal work or find illegal Czech job opportunities. Laws protect whistleblowers' right to anonymity.
The main consequence for the employee is deportation. The Czech authorities have the right to expel individuals who do not comply with immigration and employment regulations. A ban often accompanies deportation on re-entering the Schengen Area for up to 10 years. In less critical cases, employees engaged in illegal work can be fined. The fine can vary depending on the circumstances but typically ranges from CZK 10,000 to CZK 100,000 (approximately EUR 400 to EUR 4000).
Another issue for illegal workers is the lack of legal protection of their rights as legally employed. They often cannot claim fair wages, safe working conditions, and protection against unfair dismissal. Moreover, due to their lack of social security and health insurance contributions, workers do not have access to healthcare, pensions, and unemployment support.
Employers who hire illegal workers can face significant fines. The fines can be substantial, often ranging from CZK 250,000 to CZK 10,000,000 (€10,000 to €400,000), depending on the severity and scale of the offense. In cases of severe or repeated violations, employers may face criminal charges with even higher fines, imprisonment, and business closure.
Questions About Finding a Job in the Czech Republic
How can a foreigner get a job in Czech Republic?
Is it easy to get a work permit in Czech Republic?
What are the requirements to work in Czech Republic?
Does Czech Republic have job seeker visa?
Do I need a work visa to work in the Czech Republic if I am an EU citizen?
What types of work permits are approved in the Czech Republic?
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