Global payroll in Czech Republic

Only 499 EUR per employee per month

We currently do not offer any services in this country.
We're sorry for the inconvenience...

Rivermate's global payroll solution helps companies hire remote employees in Czech Republic . We take care of global payroll, taxes, benefits, compliance and HR activities. So you can focus on growing your business. Our global payroll solution is beneficial to companies that want to hire remote employees in a breeze. On this page you will find employment information for Czech Republic.

1. Grow your team in Czech Republic with Rivermate as your global payroll provider

Payroll, benefits, taxes, and compliance can be difficult to manage in , particularly if you don't have established local relationships. You can hire employees in effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global Employer of Record (EOR) solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

2. Introduction to global payroll in Czech Republic

If you are interested in hiring a remote team in Czech Republic, or even just individual remote employees in Czech Republic, then you have come to the right place!

Rivermate is an Employer of Record (EOR) that offers Czech Republic payroll solutions. As a Czech Republic payroll provider, we will cover everything from salary, benefits, employer-to-employee contributions, and especially payroll compliance in Czech Republic. We are confident Rivermate’s payroll solutions Czech Republic will help you grow as a business—because now, you won’t have to worry about your payroll solutions Czech Republic. We take care of everything payroll!

With Rivermate, you can run Czech Republic payroll services in just one click—regardless of currency, benefits, insurance, and your local labor laws. Everything is automated. Our priority is for you to focus on your company’s strategy and growth.

Our Rivermate Global Payroll services are made especially for startups and scaleups. We know that startups try to be extra prudent when it comes to choosing a payroll provider, so it is our mission at Rivermate to be your most reliable and cheapest payroll provider option. So if you’re looking for global payroll providers for small businesses, look no further and book a call with us now!

3. How to set up global payroll in Czech Republic

Once you've determined the best Czech Republic payroll option for your company, you'll need to collect some information from employees in order to add them to your payroll. Begin by acquiring their personal identification number, tax deduction card, and emergency contact information. When an employee begins working and provides you with their tax deduction card, they become a part of the social security system and are eligible for benefits.

4. Taxation rules for global payroll in Czech Republic

Employees and employers both make varying contributions to various tax funds. Employers, for example, contribute 24.8% of employees' salaries to state social security funds. In 2021, the Czech Republic sets a social security fund cap of 48 times the monthly average wage, which is currently 1,701,168 CZK.

The Czech Republic levied a flat 15% income tax on all employees until 2021, when a progressive tax rate was implemented. Currently, income up to 1,701,168 CZK is taxed at 15%, while income above that limit is taxed at 23%.

Employers must deduct taxes and pay employees a net wage because all taxes are withheld at the source using a Pay As You Earn (PAYE) system.

You’ll need to pay a flat corporate tax of 19%.

5. Payroll options for companies in Czech Republic

Companies that wish to expand their operations globally have four different payroll options in Czech Republic. These payroll options are:

1. Internal Payroll. This payroll option is applicable for already established companies in Czech Republic. It includes devoting an entire Human Resources staff to running the company's payroll procedures.

2. Remote Payroll. Smaller firms may lack the capacity to handle their own payroll, but they may add their workers to the parent company's payroll. This action, on the other hand, requires considerable thinking. You must guarantee that you follow the rules and laws of each nation.

Working with a local outsourcing firm is one method to retain money in the local economy, but you'll still need to study all of the local rules and regulations, since you'll be held responsible.

3. Czech Republic payroll outsourcing: Outsourcing your payroll to an Employer of Record in Czech Republic, such as Rivermate, is another alternative for Andorra payroll outsourcing. We can manage all aspects of your payroll, including compliance. Send us a note and we'll get back to you as soon as possible!

6. Payroll compliance Czech Republic

Payroll outsourcing is popular among companies expanding to the Czech Republic because it allows them to navigate an often complex legal environment with ease and peace of mind.

It is critical to ensure statutory compliance for your payroll in Czech Republic. This refers to all payroll laws and regulations established by central or local government bodies.

7. How to manage payroll in Czech Republic

Companies that have a business presence in Czech Republic have different ways of managing payroll. However, most of the options you have for running payroll in Czech Republic are either expensive or require establishing a subsidiary in Czech Republic. The cheapest, most efficient, and most reliable payroll processing system in Czech Republic is by outsourcing payroll to Employers of Record (EOR) in Czech Republic. Rivermate is one of those Employers of Record.

At Rivermate, we offer you the most efficient, most compliant, and cheapest HR and Payroll Management services in Czech Republic. We do this by taking care of your payroll-related needs, such as keeping track of your employees’ financial records, including incentives, gross and net salary, and payslips, all the while staying compliant with the labor laws in Czech Republic. Because we do your online payroll management for you, you can have absolute focus on your business’ strategy and growth.

Rivermate is all about growth through collaboration and we achieve this by offering the most reliable yet cheapest services for managing payroll for small businesses in Czech Republic.

8. Entitlement and termination terms in Czech Republic

Employers and employees can mutually agree to end employment. Both sides must agree on a termination date, and the employer must offer a written justification. Employers may terminate employment by providing written notice that includes a cause for the termination. Without a documented justification, the termination is void. Employees may immediately end their job if they present documented justifications. Employers have the option of terminating employment when temporary work or a project is done.

9. Compensation in Czech Republic

In January 2021, the Czech Republic's compensation laws were amended to increase the minimum wage to CZK 15,200 per month. These laws, however, may vary according to the terms of the collective bargaining agreement.

10. Working hours and overtime in Czech Republic

A 40-hour work week, or eight hours per day, is considered full-time. A shift cannot exceed 12 hours in duration.

11. Employee benefits in Czech Republic

Employers are required to contribute 9% of each employee's income to the state's health insurance funds. There is no upper limit on the pay basis for health insurance purposes.

Employers occasionally offer private health insurance, although the Czech healthcare system is often regarded as providing high-quality treatment. Employers in the Czech Republic also frequently provide meal coupons.

12. Why choose Rivermate as your global payroll provider in Czech Republic

Establishing an entity in to hire a team takes time, money, and effort. The labor law in has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record (EOR) solutions in give you peace of mind so you can focus on running your business. Please contact us if you'd like to learn more about how Rivermate can help you hire employees in via our Employer of Record (EOR) / PEO solution.

A woman relaxing and drinking coffee
Hire anyone, anywhere
Ready to get started?