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11. Employee Benefits

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11. Employee Benefits

Social Security

The basic employee’s benefits can be as follows:

  • Additional annual leave (up to statutory 4 weeks);
  • Bonuses;
  • Meal allowances;
  • Sick days;
  • Higher severance payment when terminating employment on the grounds of restructuring or due to occupational injury/disease.

The employer is obligated to provide payments to the employee’s social security. The amount is set by law according to the amount of the employee’s salary. Based on paid social security, an employee can obtain financial support, e.g. during temporary incapacity for work, maternity/parental leave/taking care of a child or disabled person.

Healthcare and Insurances

The employer is obliged to provide payments to the employee’s health care insurance as well. The payment is paid to the employee’s health care insurance company who provides free health care for medical services set by law at contracted medical facilities.

Required Leave

  • Sickness Leave and Disability Leave

An employee who has been declared temporarily incapable for work or who has been ordered to be quarantined (the “TIW”) and who, on the start date of the TIW, meets the conditions for entitlement to a sickness benefit, may become entitled to salary compensation from the employer for the first 14 calendar days of the TIW in the amount of 60% of the average reduced earnings. If the TIW lasts longer than 14 calendar days, the employee may become entitled to a so-called ‘sickness benefit’ under the Sickness Insurance Act.

Extra sickness leave (so-called Sick days) which will not require a doctor’s confirmation can be provided by the employer as a voluntary benefit to employees and can be concluded in the employment agreement or the employer’s  internal regulation.

  • Maternity Leave

In connection with the birth and care of a new-born child, a female employee may become entitled to maternity leave for a period of 28 weeks; if she gives birth to two or more children at the same time, she shall be entitled to maternity leave for a period of 37 weeks. The female employee shall normally take maternity leave from the beginning of the sixth week before the expected date of childbirth, but not earlier than the beginning of the eighth week before that date.

During maternity leave, the female employee may be entitled to a so-called ‘maternity benefit’ in accordance with the Sickness Insurance Act. The amount of the maternity benefit per calendar day shall be 70% of the daily assessment base.

  • Paternity Leave

Under the Sickness Insurance Act, a male employee may be entitled to 2 weeks of paternity leave, which must normally be taken within the first 6 weeks after the birth of his offspring.

During paternity leave, the male employee may be entitled to a so-called ‘paternity benefit’ in accordance with the Sickness Insurance Act. The amount of the paternity benefit per calendar day shall be 70% of the daily assessment base.

  • Parental Leave

A female employee or a male employee may request the employer to take parental leave to the extent chosen and up to a maximum of 3 years of age of the child, subject to the statutory conditions.

During parental leave the employee who personally daily and duly cares for the youngest child in the family for a full calendar month may be entitled to a so-called ‘parental benefit’ of up to CZK 300,000, or up to CZK 450,000 in the case of the birth of multiples; the parental benefit is usually provided to the employee as monthly payments during the three-year period of the parental leave until the entire sum is used up.

  • Nursing Benefit

The employer may excuse, if all conditions are met, the employee’s absence from work for 9 days, or 16 days (in the case of a lone employee, unless otherwise specified), for the care of a child under 10 years of age due to illness or injury, the care of another individual whose health condition requires necessary treatment due to illness or injury, and the care of a child under 10 years of age in selected cases.

During the course of the nursing, the employee may be entitled to a so called ‘nursing benefit’ in accordance with the Sickness Insurance Act. The amount of the nursing benefit per calendar day may be 60% of the daily assessment base.

Any Other Required or Typically Provided Leave(s)

Parental Leave

A female employee or a male employee may request the employer to take parental leave to the extent chosen and up to a maximum of 3 years of age of the child, subject to the statutory conditions.

During parental leave, the employee who personally daily and duly cares for the youngest child in the family for a full calendar month may be entitled to a so-called ‘parental benefit’ of up to CZK 300,000, or up to CZK 450,000 in the case of the birth of multiples. the parental benefit is usually provided to the employee as monthly payments during the three-year period of the parental leave until the entire sum is used up. A bill to increase the benefit to CZK 350,000 or CZK 525,000 in the case of giving birth to more than one child is now being passed through the legislative process.

Other leaves

Leave must be granted for various other reasons such as: examination or treatment performed at a health care facility, wedding, funeral, moving for work, discharge from public office, performance of civic duties (e.g., activities of witnesses, interpreters, certified experts), discharge from office of a member of the trade union organisation’s body, employee’s activity as a blood donor, etc. The Labour Code and other laws set the length and compensation in the event of the above-mentioned leaves.

Pensions: Mandatory and Typically Provided

The employer’s payment of social security also contains the payment of pension insurance. Besides statutory pension insurance, certain employers provide contributions to the employee’s private pension or life insurance as a discretionary benefit.  Such contributions are very common in practice.

Any Other Required or Typically Provided Benefits

  • Financial bonuses;
  • Company car/cell phone for private use;
  • Contributions to the employee’s private pension/life insurance;
  • Sport/cultural vouchers.
Any questions

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