[Czech Republic] Overtime and wages - Part 2


In our previous article we informed you about wage for overtime work and the possibility of using compensatory time off instead of overtime premium. How the payroll accountant incorporates the overtime premium and compensatory time off into the payroll will be the subject of today's article.

The overtime premium is at least 25% of average hourly earnings. The calculation of the premium is therefore based on a different basis than the calculation of wage for overtime work. In simple terms, average hourly earnings are calculated as the wage earned (including bonuses) divided by the number of hours worked, always of the previous calendar quarter. If the employer wants to grant a higher premium than 25%, this is possible. However, we should always bear in mind the prohibition of discrimination and unequal treatment.

Compensatory time off for overtime should be provided within 3 calendar months after the overtime has been worked, but it is possible to agree on a later period. The compensatory time off is unpaid. In practice, this means that if someone works overtime and takes compensatory time off for overtime in one calendar month, there is no change in their wage. Technically, he/she should be paid the extra wage for overtime, but at the same time his/her basic wage should be reduced by the same amount because he/she has taken the same amount of compensatory time off, which is unpaid.

However, if the compensatory time off was taken in another month, the wage for overtime should be paid in the month the overtime is worked and the reduction in wage should occur in the month the compensatory time off is taken. Thus, the employee should be paid more in one month and less in another month.


Martin Svoboda
Payroll Development Specialist
Contract Administration
Subscribe our newsletter

If you want to be up-to-date, subscribe our newsletter!

Contract Administration

City Business Center 5 Karadžicova 16
821 08 Bratislava
✆: +421 901 911 197

Contract Administration

Masarykova 34/413
602 00 Brno
✆: +420 542 425 824

Contract Administration
Sp. z o.o.

ul. Hrubieszowska 2
01-209 Warszawa
✆: +48 22 295 3200

Contract Administration
Sp. z o.o.

ul. Strzegomska 142A
54-429 Wrocław
✆: +48 71 733 1300

Contract Administration
Sp. z o.o.

ul. Smoleńsk 18/1
31-112 Kraków
✆: +48 12 334 9100

Contract Administration
Sp. z o.o.

ul. Nawrot 114
90-029 Łódź
✆: +48 42 671 8560

Contract Administration

U Garáží 1611/1 Praha 7 Holešovice
✆: +420 221 111 611



Czech Republic

Brno, Prague


Warszawa, Wrocław, Kraków, Łódź

Choices pertaining to cookies on this website

Contract Administration Sp. z o.o. may use the cookies to store login information, collect data for the purposes of optimising website operation, and provide advertisements tailored to your interests. Choose, in the manner described below, whether this website may use functional or advertising cookies

zamknij This website uses cookies to provide services in line with Cookies policy. You can define terms and conditions of storing or accessing cookies in your browser.