Czech Republic
Mandatory employer pension contributions for employees performing high-risk work
Impact date: 1 January 2026 A new law introduces mandatory employer pension contributions (known locally as contributions to the ‘third pension pillar’) for employees performing high-risk work. Specifically, if classified in the 3rd risky category for factors such as vibrations, cold, heat, or high dynamic physical load involving large muscle groups. The contribution amounts to 4% of the assessment base if the employee worked at least 3 shifts (24 hours) of risky work in a given calendar month. The obligation applies only if the employee makes a request to the employer in writing and provides the necessary pension institution and payment details.
Employer implications/action needed Employers must inform current qualified employees (3rd risky category) in writing by 15 January 2026 about the right to the contribution and how to claim and any qualifying new employees before they start high-risk work. Internal processes should be adjusted to receive employee notifications, track qualifying shifts, and ensure payment to the specified pension company account. If the employer already provides similar contribution based on its internal policy, compliance with the new law must be assessed.
Employer risk Failure to pay the mandatory contribution, fulfil the information obligation, or issue the required confirmation (or its copy) constitutes an administrative offence. Fines may be imposed up to CZK 200,000 for breaches of the information or confirmation obligations, and up to CZK 2,000,000 (approx. €80,000) for failure to pay the contribution. Offences are handled by the relevant Labor Inspectorate.
The Ministry of Labor and Social Affairs has set the minimum wage for 2026
Impact date: 1 January 2026 The Ministry of Labor and Social Affairs has set, based on the automatic valorization mechanism, the minimum wage for 2026 at CZK 22,400 per month (approx. €900) and CZK 134.40 per hour (approx. €5.40), which represents an increase of CZK 1,600 (7.7%).
Employer implications/action needed Employers should determine whether any employees are earning less than the minimum wage established for 2026 and ensure their wages are increased to the required level by 1 January 2026.
Employer risk Employers risk a fine of up to CZK 2,000,000 (approx. €80,000) in the event of non-compliance.
New legislation reducing administrative burden of employers is being implemented
Impact date: Effective date of the Act on Unified Monthly Employer Report (1 January 2026); Launch of the JMHZ (1 April 2026) The Act on Uniform Monthly Employer Report (Act No. 323/2025 Coll.) aims to consolidate fragmented reports that employers are currently obliged to submit to various state administration authorities (social security administration, Ministry of Labor and Social Affairs, Czech Statistical Office, Labor Office and financial authorities) into a single report called the “Unified Monthly Employer Report” (“JMHZ”). This will significantly reduce administrative burden of employers. Employers will be required to submit this report once a month, within the period from the 1st to no later than the 20th day of the calendar month immediately following the reporting period. Within the JMHZ system, employers and their employees will be registered, along with their specific employment relationships identified.
Employer implications/action needed Employers will be required to submit the JMHZ once a month and register all their employees in the registry before they start working, ensuring compliance with the new requirements.
- employers will have to fulfill most of their obligations (e.g., employee registration, submission of monthly reports) from 1 April 2026
- employers will not submit insurance reports for the months of January to March 2026. However, employers are required to pay insurance premiums within the statutory deadline
- employers will submit monthly reports for January to March 2026 between April and June 2026
- from 1 April to 30 June 2026, the current eight-day deadline from the date of commencement of employment will apply for registering Czech employees, and registration before the start of work will not be required
- from 1 July 2026, there will be an obligation to register (at least partially) all employees before they start work in order to prevent undeclared work. The obligation to complete the remaining data (after partial registration) is set at no later than eight days after the employee starts work
Employer risk Failure to comply with this obligation may result in fines of up to CZK 100,000 (approx. €4,000).
Misclassification - self-employment in the IT sector (case law)
Impact date: 16 March 2026 (date of judgement); relevant immediately as judicial guidance. The Supreme Administrative Court upheld a labour-inspection finding that IT programmers engaged as self-employed contractors were in fact performing dependent work. It stressed a material overall assessment of the relationship, including instructions and control, integration with employee teams, full-time-like workload, limited ability to refuse tasks, economic dependence and lack of genuine business autonomy. The contract wording and the contractors’ preference for self-employment were not decisive.
Employer implications/action needed Employers engaging freelancers, particularly in the IT sector, should assess whether the arrangement is genuinely one of self‑employment (B2B) by examining factors such as the individual’s freedom to refuse work, rights of substitution, maintenance of an independent client base, exposure to business risk, ownership of deliverables, and the extent to which the relationship is insulated from employee‑like management and control.
Employer risk Misclassification of status may lead to labour-inspection fines, worker claims and related payroll, tax and social-security exposure.
Unified monthly employer reporting
Impact date: 1 April 2026. The first regular monthly report for April 2026 is due between 1 and 20 May 2026. Back-reporting for January to March 2026 is due by 30 June 2026. The unified monthly employer reporting system (JMHZ) moved into live operation from 1 April 2026. Employers must submit a monthly electronic report to the Czech Social Security Administration, consolidating data previously reported through several separate channels. The report is submitted monthly from the first to the 20th day of the following month. Reports for January to March 2026 must also be filed retrospectively by 30 June 2026, separately for each month.
Employer implications/action needed Employers must ensure that payroll and HR systems are technically ready for JMHZ, that the relevant employee and employment identifiers are available, and that payroll providers have a clear responsibility matrix for monthly submissions, corrections and rejection protocols. Internal cut-off dates for payroll data should be reviewed because the filing deadline is short.
Employer risk Defective or late filings may be rejected or may trigger correction requests and administrative exposure. Payroll data errors may also affect social security, tax and statistical reporting downstream.
Draft Labour Code amendment on pay transparency
Impact date: Not yet adopted. The transposition deadline under EU law is 7 June 2026. According to the Ministry, core national provisions are expected to apply from 1 January 2027; pay-gap reporting should start from 2028 for employers with 150+ employees and from 2031 for employers with 100–149 employees. The Ministry of Labour and Social Affairs has presented a draft amendment implementing Directive (EU) 2023/970 on pay transparency. The draft follows a “minimalist transposition” approach, but would still introduce important employer obligations, including a ban on asking candidates about their pay history, an obligation to disclose the offered pay range before recruitment, and obligations to monitor and report gender pay differences for larger employers.
Employer implications/action needed Employers should start mapping pay structures, salary bands, job architecture and recruitment templates. Larger employers should test whether they can produce reliable gender pay-gap data by comparable categories of employees and should identify unexplained pay differences early.
Employer risk The proposal is not yet law, but employers with larger workforces may need significant preparation time for data quality, pay transparency, internal communication and possible remedial measures.
Draft Act on Platform Work and related amendments
Impact date: Not yet adopted. The EU transposition deadline for the Platform Work Directive is 2 December 2026. The Czech proposal was circulated in spring 2026, with consultation activity in April 2026. A draft Act on platform work has been circulated as part of the Czech transposition of Directive (EU) 2024/2831. The proposal is at an early legislative stage / consultation stage. It is expected to introduce a rebuttable presumption of an employment relationship where platform work shows features of dependent work, as well as transparency obligations concerning automated allocation of work, evaluation and algorithmic management.
Employer implications/action needed Digital labour platforms should review worker-classification models, contractual documentation, onboarding information, algorithmic management processes and data-protection notices. Other employers using automated systems to allocate, monitor or evaluate work should also monitor the draft, as some related obligations may have a broader practical impact.
Employer risk The proposal is still pending, but platform operators and businesses relying on contractor models may face reclassification, information and compliance risks once the rules are adopted.
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