Copyright 2023 – Azure Global. All Rights Reserved.
Good to know
In Ukraine, working overtime on weekdays and public holidays results in compensation at 200% of an employee’s regular hourly wage. It is not an option to take an extra day off as compensation as allowed in other countries.
Currency
Ukrainian Hryvnia (UAH)
Capital
Kyiv
Employee Costs
0.60%
Local Language
Ukrainian
Employer Taxes
22.00%
Public Holidays
15 Days
Payroll Frequency
Bi-monthly
Tax Year
1st Jan – 31st Dec
Are you ready to hire in Ukraine?
Ukraine has a strong educational system, producing a large amount of highly skilled professionals in various fields, including IT, engineering, mathematics, and sciences. Additionally, it also become known as a global IT and technology talent hub, with a thriving tech ecosystem.
Ukrainian IT specialists are highly regarded for their skills and expertise in software development, cybersecurity, and other tech-related fields. Many Ukrainians are proficient in English, making communication with international partners and clients relatively easy.
Want to know more?
Call us today at: +44 (0) 333 034 1068
Minimum Wage
The minimum wage in Ukraine is 6,700 UAH per month. The hourly pay rate cannot be less than UAH 40.46.
Working Hours
Standard Working Hours
The standard working hours are 40 hours a week, 8 hours per day over 5 working days. The standard work week is Monday – Friday.
Overtime
Any hours worked beyond the standard 40-hour working week will be compensated at 200% of the employee’s regular hourly rate.
Payroll
According to Ukrainian regulations, employees are required to receive their pay twice a month. Under no circumstances should the gap between payments exceed 16 days. Futhermore, if the scheduled payment date falls on a public holiday or a weekend, the payment must be made on the day before.
Leave
Paid time off
After completing 6 months of employment with an employer, workers in Ukraine are entitled to 24 days of paid leave annually.
Sick Pay
Employees are entitled to 4 months of sick pay. The amount of sick pay varies from 50% to 100% of an employee’s salary, depending on the employee’s length of employment. Additionally, The compensation an employee receives from the Social Insurance Fund is determined by the employee’s length of service.
Maternity Leave
The maternity leave entitlement in Ukraine allows employees to take maternity leave of 126 days, during which the Social Insurance Fund compensates maternity leave equivalent to 100% of their salary.
Paternity Leave
Fathers in Ukraine are entitled to 2 weeks of paid maternity leave.
Termination
Termination of Employment
The procedure for terminating employment varies based on the employment and collective agreements, as well as the type of contract and the grounds for termination. Reasons for termination can include mutual agreements, company liquidation, violation of labour agreements and laws, or staff reduction. Pregnant women, women with children under three years old, and employees near retirement age are all protected against being dismissed. Additionally, severance payment is provided equivelant to one month’s salary for every two years of employment.
Notice Period
The duration of notice periods in Ukraine is subject to variation dependent upon the grounds for termination. If the employee terminates the contract the notice period is 2 weeks, however, if the employer terminates the contract, they need to give at least 2 months’ notice. If the employment is terminated by mutual agreement, no notice period is necessary.
Probation Period
The probation period in Ukraine must not exceed 3 months in total. For non-qualified workers, this is reduced to 1 month.
Visa
Employers of foreign nationals in Ukraine have limited options under the immigration law.
There are 3 different types of visas in Ukraine. B type (transit) visas are issued in situations where a foreign person intends to transit through Ukraine in less than 5 days. They are usually issued as single, double, multiple entry visas valid for 1 year maximum.
C type (Short-term) visas are issued when a foreign person intends to stay in Ukraine for up to 90 days within a period of 180 days. They are issued as single /double / multiple entry visas valid for 6 months.
D type (Long-term) visas are issued in cases where a foreign person is applying for a temporary residence permit to stay I Ukraine for more than 90 days. D type visas are usually issued as multiple entry visas valid for 90 days.
Furthermore, work permits can be issued between one and three years depending on the foreign national’s position, education, and salary, and can be renewed.
VAT
The standard VAT rate in Ukraine is 20%.
