Ukraine
Introduction
General overview & country facts, as well as labour regulations.
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Employment Terms
All you need to know about salary & bonuses, working hours & overtime, probation period, notice period & severance pay, as well as all leave types.
COUNTRY PLAYBOOK
Ukraine
Everything you need to know about payroll, benefits & hiring top talent in Ukraine
Currency
Hryvnia (UAH)
Salary payment frequency
Twice per month
Capital
Kyiv
Time Zone
GMT +2:00
Official Languages
Ukrainian
Is English spoken?
No
Quick Links
Introduction
General Overview & Economic Facts
- Ukraine is a country in Eastern Europe, and it is the second-largest country in Europe by area after Russia
- Ukraine is 603,628 square kilometers (233,062 square miles) with a population of 41.2 million
- Ukraine is a developing country ranking 74th on the Human Development Index (HDI)
- Ukraine further has the world’s 48th largest economy by PPP and the 56th largest economy by nominal GDP
Why Employ In Ukraine?
- The economy of Ukraine is an emerging free market economy with fuel, mining, aircraft and aerospace, agriculture and tourism being the top industries in the country
- Ukraine is among the most educated countries in the world with a tertiary gross enrollment ratio of 83%. Further nearly 100% of the adult population in Ukraine is literate
- 9.28% of the population is between the ages of 15 and 24 years, with 43.66% of the population being between the ages of 25 and 54. Ukraine has a more mature demographic with the average age being 41.2 years old
Overview of the Labour Law
- The main law which regulates employment in Ukraine of salaried employees is the Labour Code of Ukraine
- The main purpose of this Labour code is to ensure good work productivity, improvement of work quality, improve efficiency and maintain good employer- employee relationships
- By law any worker in Ukraine is entitled to join a trade union and cannot be disadvantaged or treated differently for joining one
- Ukrainian Labour law is very protective of employees. An employer is entitled to conclude an employment contract with different terms to what is envisaged under the Labour Code. These provisions are not allowed to result in a worker being in a worse off position. Any contractual terms that result in a worse off position for the employee will be considered null and void
Fun Country Facts
- The famous ‘Tunnel of Love’ is in Ukraine
- The deadliest nuclear disaster of all time Chernobyl happened in Ukraine making it the home to many ghosts’ towns
- Ukraine is one of the largest producers of wheat in the world
Why Use Playroll Services For Ukraine?
- Employing in Ukraine requires companies to have their own legal entity in the country as well as managing payroll, employee benefits, taxes and legal compliance. This can get quite complicated, especially with the complexity of employment laws in Ukraine
- With Payroll’s Employer of Record services, your team will be employed by our established legal entities in each country
- We will take care of payroll, employee benefits, taxes, legal compliance and provide ongoing employee support, so that you can focus on growing a thriving team
Employer Contributions
These are additional costs incurred by employers over and above the employee’s monthly gross salary and/or bonus.
Mandatory Unified Social Security Contributions (USC)
Calculated on gross income up to a maximum monthly salary of UAH 97,500
22.00%
Employee Contributions
These are costs incurred by employees that reduce their monthly gross salary and/or bonus to determine their net “take home” pay.
Military Tax
Calculated on income received
1.50%
Income Tax
Income Tax is ‘Pay As You Earn’
Calculated on income received
18.00%
Employment Terms
General
Minimum Wage
- UAH 6,500 per month
Working Hours
- Maximum of 40 per week
- Meal interval is mandatory of between 0 and 2 hours after 4 hours are worked
- Typical working hours are 09h00 to 17h00
Overtime
- Employees may work a maximum overtime hours of 120 hours per year
Notice Period
- The notice period in Ukraine depends on the grounds for dismissal
- A dismissal for economic or organisational reasons is 2 months by the employer
Severance Pay
- Depending on the reason for termination of employment, employees may have the right to a statutory severance payment
Probation Period
- There is not statutory probation period
- Probation periods may be a maximum of 3 months
Bonus
- It is quite common to reward employees through contractual or discretionary bonuses
Public Holidays
Public holidays 2022
- January 3rd – New Year’s Day
- January 7th – Orthodox Christmas Day
- March 8th – International Women’s Day
- April 24th – Orthodox Easter
- May 2nd – Labour Day
- May 9th – Victory Day over Nazism in World War II
- June 12th – Trinity Day
- June 28th – Constitution Day
- August 24th – Independence Day of Ukraine
- October 14th – Ukraine Defender Day
- December 26th – Christmas Day
Leave
Paid Leave / Vacation Days
- Paid leave
- Paid by the employer
- 24 days
- Employees are entitled to a further 15 days of unpaid leave
Sick Leave
- Paid leave
- Paid by the employer
- 5 days
- From the 6th day onwards, sick leave can be recovered from Social Security
Maternity Leave
- Paid leave
- Paid by the employer
- 18 weeks for a single birth, 20 weeks for multiple births
Paternity Leave
- Paid leave
- Paid by the employer
- 14 days
Child Care Leave
- Unpaid leave
- Entitled to leave up until the child reaches 3 years of age
Bereavement Leave
- Unpaid leave
- 7 days for a relative by blood or marriage, 3 days for other relatives
Compassionate Care Leave
- Unpaid leave
- 30 days
Study Leave
- Paid leave
- Paid by the employer
- Study leave depends on the type of institution and course studied
Marriage Leave
- Unpaid leave
- 10 days
Adoption Leave
- Paid leave
- Paid by the employer
- 56 days for 1 child, 70 days for 2 or more children
Leave for Children with a Disability
- Paid leave
- Paid by the employer
- 10 days
Start hiring in Ukraine today!