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Capital City
Kyiv
Currency
Hryvnia
(
₴
)
Timezone
GMT +2
Payroll Frequency
semi-monthly
Tax Year
1 January - 31 December
Employer Tax
22%
Languages
Ukrainian
Capital City
Kyiv
Currency
Hryvnia
(
₴
)
Timezone
GMT +2
Payroll Frequency
semi-monthly
Tax Year
1 January - 31 December
Employer Tax
22%
Languages
Ukrainian
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.
Businesses can only operate smoothly in Ukraine if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Ukraine below, to avoid any compliance issues.
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.
We can help you get a new employee started in Ukraine quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.
For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.
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 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.
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1 January - 31 December is the 12-month accounting period that businesses in Ukraine use for financial and tax reporting purposes.
The payroll cycle in Ukraine is usually semi-monthly, with employees being paid between the 15th and 20th of each month.
The minimum wage for employees in Ukraine is typically 48 UAH per hour, amounting to ~8000 UAH per month for a typical 40 hour work week.
Ukranian law does not include provisions for 13th salaries.
Employer payroll contributions are generally estimated at an additional 22% on top of the employee salary in Ukraine.
In Ukraine , the typical estimation for employee payroll contributions cost is around 2.1%.
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.
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The annual leave entitlement in Ukraine is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.
The following are the 10 recognised holidays in Ukraine in a calendar year:
Following six months of continuous employment, employees in Ukraine are entitled to a minimum of 24 days of paid annual leave. This allowance may be extended for minors and those in challenging or hazardous occupations. Additionally, unused leave days can be accumulated for later use.
In Ukraine, a pregnant employee is entitled to 126 days of paid maternity leave, with 70 days taken before the expected due date and 56 days after childbirth. The Social Insurance Fund provides compensation for maternity leave at 100% of the employee's average salary.
Paternity leave in Ukraine allows fathers to take up to 14 paid calendar days leave within the first three months after the birth of their child.
In Ukraine, employees are entitled to up to 4 months of paid sick leave. During this period, the employer covers the first 5 days, and reimbursement is obtained from the Social Insurance Fund. The compensation from the Social Insurance Fund varies based on the employee's length of service:
In Ukraine, mothers, fathers, and grandparents have the right to unpaid parental leave, which can be taken after the conclusion of maternity leave and extends until the child reaches 3 years of age.
An employee in Ukraine is eligible for bereavement leave for a maximum of 7 days following the death of an immediate family member.
In Ukraine, an employee is entitled to 10 days of leave in celebration of their wedding.
Employees in Ukraine have the right to paid study leave, and the employer provides compensation. The duration of the leave depends on the length of the exam period.
A person who has adopted a child has the right to leave in connection with the adoption of a child, provided that the application for the leave is received no later than three months from the date of entry into force of the court decision on the adoption of the child.
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.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.
ABOUT THE AUTHOR
Jesse Weisz
Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).
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