Czech Republic flag Czech Republic: Operating a Business in the Czech Republic

Work conditions in the Czech Republic

The Active Population in Figures

201820192020
Labour Force 5,452,9435,441,3325,378,192

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 76.11%76.79%76.86%
Men activity rate 83.09%83.49%83.54%
Women activity rate 68.90%69.87%69.95%

Source: International Labour Organization, ILOSTAT database

 
Employed Persons, by Occupation (% of Total Labour Force) 2015
Manufacturing 27.3%
Wholesale and retail trade; repair of motor vehicles and motorcycles 12.2%
Construction 7.9%
Human health and social work activities 7.0%
Education 6.4%
Public administration and defence; compulsory social security 6.3%
Transportation and storage 5.9%
Professional, scientific and technical activities 4.7%
Accommodation and food service activities 3.9%
Agriculture, forestry and fishing 2.9%
Information and communication 2.8%
Administrative and support service activities 2.6%
Financial and insurance activities 2.3%
Arts, entertainment and recreation 1.6%
Water supply; sewerage, waste management and remediation activities 1.1%
Electricity, gas, steam and air conditioning supply 1.0%
Real estate activities 0.9%
Mining and quarrying 0.8%
 

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
Men 63 years, Women 59-62 years depending on the number of children. In order to reach retirement age, it is necessary to pay pension insurance (to be employed or to operate one's own business) for at least 25 years.
Since 2008, the retirement age for men has been increasing by two months per year from 62 years. Czech policy stipulates that the retirement age will continue increasing at this rate until it reaches 65 years in 2030.
Working Contracts
Legal clauses regulate employment contracts and to a lesser degree collective agreements and individual negotiations.
The terms of employment contracts are extremely rigid and the limits for dismissal are less strict.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labour regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
The minimum wage is set CZK 14,600 per month for 2020 (official governmental source).
Average Wage
CZK 34,077 in Q1 2020, according to the Czech Statistical Office.
Social Contributions
Social Security Contributions Paid By Employers: Employers contribute 33.8% of the employee's gross salary to the state health and social security funds (9% to the state health insurance funds and 24.8% the state social security funds).
Social Security Contributions Paid By Employees: Health insurance 4.5%, old-age and invalidity pension between 3.5% and 6.5%.

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Social Partners

Social Dialogue and Involvement of Social Partners
The Czech Republic operates on the principle of free establishment and competition of unions. Establishment of a union is not mandatory in companies. The minimum number of employees needed to establish a company union is three.
Amongst them, the most powerful is Czech-Moravian Confederation of Trade Unions (so called CMKOS). It is an important social partner in tripartite negotiations in the framework of the Council of Economic and Social Agreement of the Czech Republic. It works in the regions of the Czech Republic through Regional Councils of Trade Unions (RROS) and Regional Offices for Legal Assistance (RPP). There are 33 trade unions in the framework of CMKOS.
Unions
CMKOS, Czech-Moravian Confederation of Trade Unions
Other Unions affiliated to CMKOS
Unionisation Rate
11% of all employees.
Labour Regulation Bodies
Ministry of Labour and Social Affairs
Confederation of Industry of the Czech Republic (SPCR)
European Agency For Safety and Health at Work (Czech Republic Page)

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Latest Update: June 2022

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