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Ukraine, one of the largest countries in Europe, spans approximately 231,000 square miles (600,000 km) and accommodates a population of 40 million.
Renowned as "Europe's bread basket," Ukraine places significant emphasis on agriculture. Boasting fertile soil, which constitutes about a third of Europe's total arable land, the country stands as the world's leading exporter of wheat.
The key driver of Ukraine's economic growth is private domestic consumption. Recent years have witnessed a surge in retail sales, attributed to the upward trajectory of local wages and remittances from Ukrainians employed overseas.
Over the past few years, Ukraine's Information Technology (IT) sector has experienced notable expansion, fueled in part by a growing number of graduates from tech universities and colleges. Additionally, there has been an rise in job opportunities within the transportation sector.
When hiring in Ukraine, written employment contracts in Ukrainian are mandatory for both fixed and indefinite terms. The labour law distinguishes between employment agreements, commonly used, and more flexible employment contracts, limited by law. The only formal requirement in employment agreements is specifying probation periods.
The probation period for an employee is determined by their job role. Non-qualified employees have a probation period of 1 month, while specialists and managers undergo a 3-month probation period.
In Ukraine, the standard work week consists of 40 hours spread across 5 days. Alternatively, employers have the option to implement a 6-day workweek with a duration of 7 hours per day.
Overtime in Ukraine is compensated at 200% of the regular hourly rate for hours beyond the standard 40-hour workweek, with a maximum of 4 hours in two consecutive days and not exceeding 120 hours yearly. Certain groups are restricted from overtime, while consent is required for others, and in specific cases, overtime may be mandatory to address production disruptions.
The minimum wage in Ukraine is 6,700 UAH per month.
Ukranian law does not include provisions for 13th salaries.
In Ukraine, the individual income tax rate is a flat 18%, calculated uniformly across all income levels.
In Ukraine, the old-age pension is granted to men at 60 with 35 years of coverage, and women at 60 with 30 years of coverage. Hero-mothers with 5 or more children can retire at 50, along with specific caregiving roles or Chernobyl accident contributors. Partial or deferred pensions are also possible under specific conditions.
The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Ukraine tailored to your needs.
In Ukraine, at-will terminations are not permitted beyond the probation period. Termination must be justified and based on specific scenarios, such as:
The notice period for termination varies depending on the initiator:
In Ukraine, the severance payment amounts to one month's salary for every 2 years of employment.
The following are the 10 recognised holidays in Ukraine in a calendar year:
Legal and compliance experts are readily available to provide guidance and case-by-case Q&A support.
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