Updated 12 Oct 2026, 5-minute read
Why it pays to have more on your payslip in Czechia
In restaurants, construction or services in Czechia, it is common for part of the pay to come “on the side” in cash. At first sight it looks like a good deal: fewer deductions, more money in hand. But almost everything else is calculated from the amount on your payslip: paid leave, overtime, sick pay, maternity benefit, unemployment benefit, your pension, and how much a bank will lend you.
What is calculated from your official salary
| Situation | What it is based on | What it means |
|---|---|---|
| Holidays and public holidays | For paid leave you get wage compensation equal to your average earnings. The same applies to a public holiday that falls on your shift when you do not work. | Average earnings are calculated from what your employer paid you officially. You usually get nothing for the cash part during holidays. |
| Overtime and work on public holidays | Overtime pays a premium of at least 25% of average earnings, work on a public holiday at least 100%, unless you agree on time off instead. | The lower your official salary, the lower the premiums, even for the same hours. |
| Sick leave | For the first 14 days your employer pays wage compensation, then the Czech Social Security Administration (ČSSZ) pays sickness benefit. Both are based on your average official earnings. | With the minimum wage on your payslip, you get only a fraction of what you really earn when you are ill. |
| Maternity and parental leave | Maternity benefit is 70% of the daily assessment base. The same base also determines how fast you can draw parental allowance. | Cash paid outside the payslip counts towards neither maternity nor parental benefits. |
| Losing your job | From 2026, unemployment benefit is 80%, later 50% and 40% of the average net earnings from your last job. | The labour office uses the confirmation from your employer, so only your official salary counts. |
| Severance pay | In a redundancy, severance pay is one to three times your average earnings, depending on how long you have worked for the employer. | If part of your pay is in cash, severance is based on the official part only. |
| Pension | Your pension depends on your assessment bases over your whole working life. | Every year with a low official salary lowers your future pension. |
| Mortgage and loans | Banks count only income you can prove: a payslip or a confirmation from your employer. | For a bank, cash in hand does not exist, so you get a smaller loan or none. |
| Dispute with your employer | You can only claim the salary that is in your contract and on your payslip. | If your employer stops paying the cash part, you have no way to defend yourself. |
The rules for unemployment benefit may change from 2027. As of October 2026, a reduction has been proposed.
What it costs your employer
It is fair to know why employers offer cash on the side: every crown on the payslip costs them more. For an extra CZK 1,000 to reach your account, they have to raise your gross salary by about CZK 1,360, which costs them about CZK 1,820 in total, because they pay insurance on top of the gross salary.
That is why it is realistic to ask for the move to the payslip step by step, not all at once. For the employer it is also a matter of risk: paying wages outside the payslip is illegal, and an inspection can lead to back payments of contributions and fines.
How to ask for more on your payslip
- Talk about a specific situation, not a principle. “I am applying for a mortgage and the bank only counts what is on my payslip” or “we are planning a child and maternity benefit is based on the official salary” are arguments an employer understands.
- Suggest a plan. For example, move CZK 3,000 to the payslip now and another part from the new year.
- Combine it with your review. If you are about to ask for a raise, ask for the increase to appear on your payslip, not in an envelope.
- Know your number. Check what your profession officially pays. If your payslip shows much less, it is a strong argument.
What does your profession officially pay?
Compare your official salary with the median in your profession, based on statistics from the Czech Statistical Office. Free, and your salary is not sent anywhere.
Compare my salaryAs of 12 Oct 2026. The article describes general rules, the actual amount of benefits depends on your situation. This article is not legal or tax advice.
Sources on unemployment benefit (in Czech): epravo.cz, finance.cz.