Free Guide for Expats
Start here if you’ve just been hired in the Czech Republic or you want a clean overview of payroll basics. This free, on-page guide explains HPP / DPČ / DPP, what to sign with HR, how tax credits work, and why net salary ≠ take-home — all in English with Czech terms in brackets.
What’s inside
First-30-days checklist
- Taxpayer’s declaration (Prohlášení poplatníka)
- Health insurance registration (CZ insurer or EHIC/S2 cases)
- Bank details for payroll (CZK account recommended)
- Benefits selection: meal allowance, multisport, savings
Payslip anatomy (CZ/EN)
How to read your slip, line by line. Bilingual labels + practical checks.
Essentials we cover
- HPP vs DPČ vs DPP — what changes on your slip
- Tax credits & who can claim them (monthly vs annual)
- Net vs take-home pay: why your bank transfer differs
- Year-end (roční zúčtování) — quick orientation
Start here: your first 30 days
Documents & forms
- Sign the Taxpayer’s declaration (“Prohlášení poplatníka”). Without it, monthly tax credits won’t apply.
- Provide child documents if claiming child credit (one parent per month).
- Share bank account (ideally CZK); ask how foreign currency is handled.
Health & social basics
- Your employer reports you to Social & Health insurance; keep your insurer card updated.
- Moving from another EU country? Clarify EHIC/S1/S2 specifics with HR.
Payroll timelines
- Ask when cut-off happens for changes (credits, benefits, bank updates).
- Confirm payslip delivery method and payday calendar.
Contracts: HPP / DPČ / DPP
HPP (Employment)
- Full Social (7.1%) & Health (4.5%) deductions on employee side
- Overtime, allowances, and leave follow Labour Code rules
- Stable monthly pattern → payslips easier to compare
DPČ
- Insurance may apply depending on monthly thresholds
- Crossing the limit switches on Social/Health for that month
- Multiple DPČ across employers need careful monitoring
DPP
- Often no Social/Health under limits → only tax withheld
- Shorter payslip; big month-to-month variability
- Clarify how many DPPs you hold and where
Exact limits and caps change over time — HR should confirm current rules for your contract and month.
Taxes & credits: what really applies
Rates on your slip
- Income tax advance: 15% / 23% (23% only above threshold)
- Employee Social: 7.1% • Health: 4.5%
- Rounding & taxable allowances can change the final net
Credits (měsíční slevy)
- Apply monthly only with signed Taxpayer’s declaration
- Child credit: one parent per month; provide documents
- Spouse allowance is not monthly — it’s handled annually if eligible
Common misunderstandings
- Net salary is not the final bank transfer
- Benefits and garnishments change your take-home
- Different contract type → different deductions
Net vs take-home: why the numbers differ
Typical plus/minus
- Meal allowance (+) — may increase your take-home
- Private savings / benefits (–) — reduce bank transfer
- Garnishments (–) — court-ordered deductions
How to sanity-check
- Match gross → statutory deductions → net → adjustments → bank transfer
- Compare YTD totals to spot missing credits
- When in doubt, ask payroll to explain specific lines
Benefits & allowances that affect your take-home
Meal allowance
Czech employers commonly offer meal vouchers or cash allowance. Ask if it’s taxable or partly tax-advantaged and how it appears on the slip.
Multisport & extras
Sport cards, language courses, or other perks may be deducted from net or shown as employer cost — clarify your plan’s setup.
Private savings & loans
Voluntary savings or company loan repayments reduce your bank transfer but don’t change the statutory net calculation.
Year-end (roční zúčtování): quick orientation
What it can fix
- Missed monthly credits applied across the year
- Over-/under-withholding → refund or balance
What HR needs
- Child documents (incl. study confirmation if relevant)
- Disability cards, mortgage interest, donations, etc.
- Submit by the internal deadline
More details
Prefer your own tax return or have multiple employers? Read our year-end posts:
Tools & templates
- Czech payroll calculator — quick orientation for gross→net and take-home
- Czech payslip explained — bilingual mapping of payslip lines
- Year-end articles — what to prepare and when
All links open pages on CzechPayroll.com; no files are downloaded.
FAQs
Do I need a CZ bank account?
Not always, but a CZK account avoids conversion surprises and delays on payday.
Can both parents claim the child credit?
No — only one parent per month, with documents. Agree who claims to avoid issues.
Why is my take-home lower this month?
Check adjustments: benefits, savings, or garnishments. Also confirm any overtime/leave.
Where do I get my payslip?
Ask HR which portal/email method they use and how to access historical slips.
Need clarity for your case?
30-minute English session
Bring your payslip or offer letter. We’ll review credits, contract type, and how to prepare for year-end — fast and practical.
Helpful resources
- ČSSZ (Social Security)
- Finanční správa (Taxes)
- Health insurance funds
We keep terminology bilingual (CZ/EN) to make calls with HR and authorities easier.