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Skoda auto, Foxconn, Arcelor Mittal Steel, TPCA automotive and Panasonic AVC were among the top ten companies in the Czech Republic (by revenue) in 2006. They are all pleased with conditions in the Czech Republic. Companies such as Hyundai motor, Tesco stores, Asus, Raiffeisen bank and others made their largest investments into their Czech affiliates. They all praise the Czech Republic’s highly qualified, less expensive and available labor force.

Young people have the opportunity to study at the Czech Republic’s 27 universities – some of them are state-run and some private. The government financially covers all educational costs of state universities as well as public basic and secondary schools with 4.5% of GDP (0.6% on universities). In 2006 81,932 students graduated in technology, in social sciences 49,608 students and in natural sciences 25,382 students.

The Czech Republic has a large pool of talented individuals in the fields of science and technology. The country is one of the leaders in the CEE region in scientific and engineering development, with a leading number of 8.4 scientists and engineers in research & development per one thousand working people. By comparison, this ratio in the Slovakia is 5.4, in Hungary 5.5, in Poland 4.6, and in Romania 3.4. Because of the small size of the country, and small local R&D budgets, many top Czech science and technology professionals have to choose between inconvenient relocation to pursue better paying opportunities abroad or often unchallenging local jobs with low salaries. Several foreign high-tech companies have already recognized these opportunities. World-leading IT and technology firms such as Oracle, HP, IBM, SAP, SUN, Microsoft, Siemens and Honeywell are already well established and growing in the Czech Republic.

The level of knowledge of foreign languages is still increasing. On paper, 40% of Czech population can communicate in German (but this applies most to the older generation) and about 27% of the population can communicate in English or Russian. On paper, one third of Czech society  speaks two foreign languages. The situation is better with people under 30: most of young people speak English and some also German.

In 2007 the average wage was 22,382 CZK per month (approximately 935 EUR) and has grown in past years, but is still more than twice as low as that of longer established EU member states. Since the 1st of January 2007 the minimum wage is 8,000 CZK per month. Income tax for personnel is set at a flat rate of 15%. The health insurance and social security contribution is 13.5% of gross wage (employee), the employer also contributes to the pension, social and health insurance system with 35%. This means that if an employee has a gross salary of 20,000 CZK per month, the costs for the employer (together with social security and pension and health system) are 27,000 CZK per month (35% more of the gross salary of the employee). This applies to regular, fulltime labor contracts. The labor contract has to contain work activities (tasks), place of work, starting date, salary conditions, pay day, working time, paid leave days and term of notice. The usual trial period is three months.

The usual working time in the Czech Republic is eight hours per day and 40 hours per week. According to the labor code employees can work overtime, but only 150 extra hours per year. This can be also extended somewhat, but with limitations. Workers, technicians and other employees in manufacturing, who do shift work, change shifts at 6 am, 2 pm and 10 pm. Employees on flexitime usually work from 9 am to 5 pm.

In the Czech Republic there are 13 days of bank holiday. The employees have four weeks of paid leave for vacation per year according to the labor code and some companies give as benefit a fifth week per year.

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