Czechia HR and Payroll Glossary: 14 Local Terms and Acronyms Explained

The terms and acronyms you meet on payslips, tax and employment documents in Czechia. Figures are for 2026; the calculations are on Czechia's HR data page and in the take-home pay calculator.

ČSSZ Daň z příjmů Dovolená DPP / DPČ Finanční úřad Odstupné Pracovní poměr Prohlášení poplatníka Sleva na poplatníka Sociální pojištění SÚIP Výpovědní doba Zdravotní pojištění Zkušební doba

Tax

Daň z příjmů Personal income tax

daň z příjmů fyzických osob

Charged on gross pay, with no deduction for social or health insurance: 15% up to 36 times the average wage (CZK 1,762,812 a year in 2026) and 23% above. Employers withhold monthly advances and can perform the employee's annual reconciliation. Source

Prohlášení poplatníka Taxpayer declaration

prohlášení poplatníka daně z příjmů fyzických osob ze závislé činnosti

The form an employee signs with one employer at a time so that the employer applies the basic credit and other credits each month and can do the annual reconciliation. Without it, credits are only available through the employee's own tax return. Source

Sleva na poplatníka Basic taxpayer credit

sleva na poplatníka

A credit every taxpayer can subtract from income tax: CZK 30,840 a year (CZK 2,570 a month) in 2026. It is applied monthly by the one employer with whom the employee has signed the taxpayer declaration. Source

Social security and pensions

Sociální pojištění Social security insurance

pojistné na sociální zabezpečení

The contribution for pensions, sickness benefit and state employment policy. In 2026 the employee pays 7.1% (pension 6.5%, sickness 0.6%) and the employer 24.8% (pension 21.5%, sickness 2.1%, employment policy 1.2%), both up to the maximum assessment base of CZK 2,350,416 a year (48 times the average wage). It is not deductible for income tax. Source

Zdravotní pojištění Public health insurance

pojistné na veřejné zdravotní pojištění

13.5% of gross pay with no ceiling: one third (4.5%) is deducted from the employee and two thirds (9%) paid by the employer. It goes to the health insurer the employee has chosen, the largest being VZP, and is not deductible for income tax. Source

Pay and payroll

Dovolená Annual leave

dovolená

At least 4 weeks a year (20 days on a five-day week). Public-sector employers give 5 weeks, and many private employers also give 5 weeks (25 days) by contract or collective agreement. Source

Employment law

DPP / DPČ Agreement to complete a job / Agreement to perform work

dohoda o provedení práce / dohoda o pracovní činnosti

Agreements for work outside a standard employment relationship. A DPP suits small, short assignments with an annual hours limit per employer; a DPČ suits regular part-time work with a weekly hours limit. They are widely used for students and side work and have their own insurance thresholds. Source

Odstupné Severance pay

odstupné

Due on dismissal for organisational reasons (redundancy, closure, relocation) or termination by agreement for those reasons: at least 1 month's average earnings with under 1 year's service, 2 months for 1–2 years and 3 months for 2 years or more; 12 months where a work injury ends the employment. Source

Pracovní poměr Employment relationship

pracovní poměr

Standard employment under the Labour Code (Act 262/2006), open-ended or fixed-term, with full protection on notice, leave and severance. It is distinct from the two lighter agreements outside employment, DPP and DPČ. Source

Výpovědní doba Notice period

výpovědní doba

At least 2 months for both employer and employee; a longer period may be agreed but must be the same for both sides. Since 1 June 2025 it runs from the day the notice is delivered. Ending employment by mutual agreement (dohoda) is also common. Source

Zkušební doba Probationary period

zkušební doba

Since 1 June 2025, up to 4 months (8 months for managers), agreed in writing and no longer than half of a fixed-term contract. Either side may end the employment during probation without giving a reason. Source

Agencies and institutions

ČSSZ Czech Social Security Administration

Česká správa sociálního zabezpečení

The agency that collects social insurance and pays pensions and sickness benefit. Employers register new hires with their district office (OSSZ, PSSZ in Prague), pay employee and employer contributions monthly and file the monthly contribution statement. Source

Finanční úřad Tax office (Financial Administration)

finanční úřad (Finanční správa)

The regional tax office within the Financial Administration. Employers register as payers of withheld tax, pay the monthly advances and file the annual statement of employment-income tax withheld. Source

SÚIP State Labour Inspection Office

Státní úřad inspekce práce

The State body that inspects compliance with labour law, pay and working-time rules and occupational safety, including illegal work and disguised self-employment, and can fine employers. Source

For Japan, see the Japan HR Glossary.