Vacation, illness or holiday. These quite different situations for employees have one thing in common: they may give rise to a claim for wage compensation. In our article, we will explain under what conditions this happens and how much wages are compensated.
If you are unable to work, you are entitled to sick pay, which is paid by the state from the 15th day of your illness. Until then, your employer is legally obliged to take care of you and pay you wage replacement for the first 14 days of your illness.
However, you should be careful if you are ill during the probationary period. Of course, you can still be sick during this period, but this usually has an impact on the length of the probationary period and possibly other differences.
If an employee falls ill repeatedly within a short period of time, their average earnings may be reduced because they are calculated on the previous quarter that may have been affected by the illness.
Tip: What benefits is a worker entitled to if he/she falls ill for a long period of time and how long does the employer have to keep the job? Can he be required to work at least part of the time while he is home sick? We have addressed this topic in a separate article.
For 2025, the following reduction thresholds have been set for the calculation of temporary disability pay
These thresholds are used to adjust average hourly earnings as follows
Example of calculation:
If your average hourly earnings are CZK 500, the reduction is as follows:
Total: 244,44 CZK + 81,48 CZK + 27,78 CZK = 353,70 CZK
The wage reimbursement is 60% of this amount: CZK 353.70 × 60% = CZK 212.22
This amount represents the wage compensation for one hour of sick leave during the first 14 days of sickness.
Tip: We have discussed the differences between gross and net pay and their calculations in a separate article.
Are you unclear about what wage compensation you are entitled to, or is your employer denying it and you don’t know how to claim it? Simply describe your problem to us and one of our specialists will advise and assist you within two working days.
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Holiday pay is based on a different concept than sick pay. It is primarily based on average earnings in each quarter, after which the employer’s accounting department should calculate your average earnings for that quarter. These dates are 1 January, 1 April, 1 July and 1 October.
The calculation of holiday pay is based on the average earnings for the previous calendar quarter, not the last three months. Average earnings here means gross earnings for those three months divided by the number of hours worked. This amount is then multiplied by the number of hours you spend on leave (e.g. 5 days x 8 hours = 40 hours).
In this case, for example, if Mrs Kocian goes on holiday on 5 June, then we will not take the average earnings for 4 March to 4 June as the basis, but will use the average earnings calculated on 1 April for the previous quarter.
Tip: Not sure what to do if your employer won’t approve your leave? We can advise you on exactly what you are entitled to and when and how to take your leave.
It is relatively easy to accrue vacation pay (or more accurately, shortly after) if you take it in the quarter following the quarter in which you received any bonuses or awards. For example, if you received a very generous bonus in December and take your vacation in February in the mountains, your vacation pay will be more than if you were working. This is assuming it was an extraordinary bonus. If the bonus related to a longer period, for example half a year, only one sixth of it (one twelfth in the case of an annual bonus) counts towards your gross pay.
As indicated above, gross pay for the previous quarter is divided by the number of hours worked. Therefore, if fewer hours were worked due to a holiday, the hourly wage will be visually increased.
If you were unable to go to work on Wednesday 17 November, for example, because of a public holiday, you do not have to worry about a reduction in pay as a result of fewer days worked. Even in this case, you are entitled to a wage replacement equal to your average earnings (or part thereof) for the wages you lost due to the holiday.
If the employee did not work because of a public holiday that fell on his/her normal working day, he/she is entitled to wage compensation according to the Labour Code. The working time thus lost is treated as work for the purposes of payment of wages.
In the case of a multi-shift operation, the situation is different. The employer should break down the days on which the employee works and when he does not work and, consequently, it does not matter whether it is a public holiday or not.
Public holidays are set by law on 1 January, 8 May, 5 and 6 July, 28 September, 28 October and 17 November. The law establishes as other public holidays January 1, Good Friday, Easter Monday, May 1, December 24, December 25, and December 26.
The law distinguishes other situations in which an employee is entitled to a wage refund. You can safely go to the doctor and you will be granted wage replacement and time off work for the necessary time. Likewise, you may accompany your young child to the doctor , or your spouse, partner or parent (if necessary). Your employer will give you two days’ leave with pay if you want to get married (only one day of which is payable). The law also remembers you for sad events such as the death of family members.
Tip: Do you need to move, treat strep throat, or take your dog to the vet? In all cases, these are situations that usually take place during your working hours. On which occasions are you entitled to paid (or unpaid) time off from your employer? And what if you want time off to travel, for example?
Compensation for wages is a key element of employment relations and applies to situations such as sick leave, vacation and public holidays. The employer pays for the first 14 days of sickness, after which the state takes over the payment of sick pay. The calculation of wage compensation is subject to reduction thresholds which are updated annually. Employees are also entitled to wage compensation in the event of obstacles to work caused by the employer, such as temporary closures. It is important to know one’s rights and make the correct claims so that the employee receives fair compensation.
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