jobs Illegal Employment: A foreigner found to be employed without a work permit or performing jobs inconsistent with their work permit is subject to a fine of up to 100,000 CZK. An employer found to be employing a foreigner in such a manner is subject to a fine of up to 10,000,000 CZK. Quitting: First, you obtain a výpověď dohodou (termination by agreement). This written agreement made by you and your employer states explicitly the day your employment finishes. If you are quitting it does not need to include the reason why. Remember, it must be in writing or the termination is not valid. If you work under a business license you also only have to give the company/individual you’re contracted to 15 days’ notice. Getting fired: Mutual agreement to end employment can be initiated by the employer. The conditions are similar to a termination by agreement requested by an employee. One difference is that a reason must be stated in the notice. Otherwise, an employer must give you two months’ notice starting on the first day of the month after the notice is served. Severance pay is covered in section 67 of the Labor Code. SociAl SecuRity The Czech Republic assesses social security on income from wages and self-employment earned in the Czech Republic. Social security, consisting of pension, disability and unemployment fund insurance, totaling 25.0%, is paid by employers as a percentage of gross wages. Social security is withheld from employee wages at a rate of 6.5% of “super gross” wages. Both employer and employee taxes max out at 1,809,864 CZK of taxable compensation. Company Employee Social security contribution and withholding: 25.0% 6.5% Pension insurance 21.5% Disability insurance 2.3% Unemployment fund insurance 1.2% Czech employers are also obligated to pay 2.3% disability insurance on behalf of seconded foreign (expat) employees. Seconded employees are usually foreigners that are transferred to a Czech affiliate or subsidiary for a short period of time not exceeding five years. This requirement is not negated by obtaining an osvědčení o registraci (certificate of coverage) – see below. Social security for the self-employed consists of pension fund insurance at 14.6% of taxable income. Disability insurance of 2.3% is optional. Maternity benefits require payment into a disability insurance program. Social security contributions max out at 1,206,576 CZK of taxable income. Self-employed taxable income is generally revenues minus deductible expenses, or, if the payer is using the percentage of revenue method of calculating tax, 40% of revenues, resulting in an effective tax rate of 6%. Sole proprietors must pay monthly social security advances, which are netted against the annual liability due in April. Each February the social security administration provides a summary of advances received by the payer. In the first year of business, the advance will be set to the minimum amount; in subsequent years, to the amount of tax paid in the previous year. The amount of social security advances paid depends on whether selfemployment is your main or secondary source of earned income. 2012 minimum monthly advance: 1,836 CZK (main); 735 CZK (secondary) You might not have to pay advances if you are not subject to the trade license law (e.g. a journalist) or if you are covered by a certificate of coverage under a foreign program. For example, American citizens who are self-employed are permitted to continue to pay into the US system, even if they work in the Czech Republic, for up to five years. Social security is levied on earned income, that is, income from employment and self-employment carried out in the Czech Republic. Employees sent to the Czech Republic and paid by their foreign employers must obtain certificates of social security coverage from their home country to avoid penalties. Interestingly, the US-Czech double taxation treaty permits self-employed Americans to be taxed on social security in the US for up to five years. In order to avoid paying Czech social security, they need to obtain a certificate from the US Social Security Administration. That said, Czech social security is likely to be much less than US social security for Americans using the percentage of revenue method of taxation. Job-huntinG tipS These days, you have to do a little more than just checking the online classifieds. The most important things to remember in your quest for work are: be creative, be flexible, and be ready to take on anything. ` Consider working outside the city limits. There are certain spots on the outskirts of Prague, where fewer expats are willing to commute for work, thus creating a higher demand in those areas. Also, some language agencies will pay you extra for the longer commute to end-of-the-line lessons. ` Start as a volunteer or intern. If earning a full-time salary is not a pressing matter, contact local businesses, NGOs or schools that interest you, and offer your skills to them for free. If you’re good at what you do and they like you, you might soon earn yourself a position as a paid staff member. ` What can you teach or advise someone (or even a business) on? Think about your skills, talents, background, and experience. Run through your CV and remind yourself of the kind of work you’ve done before, and how you can do it again with a “Prague twist.” Language skills are a huge asset here, so brush up on any languages that you are half decent at. ` Update your CV with your local contact info only. Get one or two friends to review it and add their input. Don’t call it a “résumé” when you email it to a prospective employer—here it’s a CV. Also, be prepared to send a recent, clean, professional-looking head shot of yourself along with your CV. ` If you have a university degree and business experience you may want to contact a personnel agency. There are a variety of them in town, and many specialize in hiring international employees. Knowing Czech is often not a requirement, but the ability to speak another European language besides English will greatly increase your chances of finding a position. ` Join a professional association like a chamber of commerce or expat business association or a regional, national, or even international professional association for your profession, such as the International Association of Journalists. There are lots listed in the business directory of Expats.cz. People in these communities love to help others establish themselves here. ` Think about getting your independent trade license or starting an s.r.o. Even if you continue teaching, you can do it directly for companies and make much more money while still charging a very competitive price. There is an investment up-front but if you plan to stay for a few years, it’s worth it. 152 | expats.cz survival guide www.expats.cz
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