Ukraine
Make employment in Ukraine easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Ukraine, all in one easy-to-use platform.
- Capital city
Kyiv
- Currency
Ukrainian hryvnia (₴, UAH)
- Languages
Ukrainian
- Population size
44,390,000
Facts & Stats
- Capital city
Kyiv
- Currency
Ukrainian hryvnia (₴, UAH)
- Languages
Ukrainian
- Population size
44,390,000
- Ease of doing business
Easy
- Cost of living index
$ (121 of 139 nations)
- Payroll frequency
Bi-monthly
- VAT - standard rate
20% (with some exceptions)
- GDP - real growth rate
4.4% (2020)
Ukraine is both Europe’s second-largest country by area and one of its most populous, famous for its rich historical heritage and biological diversity.
Prior to the pandemic, Ukraine had experienced prolonged GDP growth and strong industrial prowess in agriculture, IT, and mining. The southeastern European nation also boasts a burgeoning tech sector with a large skilled labor force in IT services, software development, ecommerce, and customer support.
Grow your team in Ukraine with Remote
Looking to employ workers in Ukraine? Companies hiring in Ukraine must either own a legal entity in the country or work with a global employment solutions provider, usually one that provides employer of record services.
Remote can employ your team in Ukraine on your behalf through our local legal entity in the country and handle payroll, benefits, taxes, and compliance for your Ukraine team. You can also pay contractors now in Ukraine with Remote.
Risks of misclassification
Ukraine, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Ukraine may lead to fines and penalties for the offending company.
Employing in Ukraine
The Ukrainian constitution and the Labour Code are the principal governing statutes that define employee protections and workers’ rights applicable to Ukraine’s workforce of 19.5 million. Employees in Ukraine enjoy protections against discrimination based on age, religion, sexual orientation, gender expression, and race.
Common questions that could come up during the hiring process include the minimum wage, overtime rates, and guaranteed paid time off. Remote can help you offer a complete, competitive, and compliant benefits package to your employees in Ukraine.
Minimum Wage
The Ukrainian government has set the minimum wage for 2021 at UAH 6,000 or approximately $220.12 per month.
Payroll Cycle
For customers of Remote, all employee payments will be made in equal bi-monthly installments, payable in arrears. Employees are paid twice a month, on the 15th and on the last working day of the month.
Onboarding Time
We can help you get a new employee started in Ukraine fast. The minimum onboarding time we need is only 22 working days.
Our team ensures your employees are onboarded and paid as quickly as possible while keeping your business compliant with all local employment legislation. The minimum onboarding time begins after the employee submits all required information onto the Remote platform. The onboarding timeline is also dependent upon registration with local authorities.
For all non-nationals of the country of employment, the Right to Work assessment (if applicable) will add three extra days to the total time to onboard. There may be extra time required if we need to follow-up on the right to work assessment.
Please note, payroll cut-off dates can impact the actual first day of employment. Remote has a payroll cut-off date of the 10th of the month unless otherwise specified.
12 Public holidays
Competitive benefits package in Ukraine
At Remote, we’re obsessed with helping you craft the best possible employee experience for your team. We are leading the way in practicing “fair equity,” which means making sure employees everywhere have access to both the required and supplemental benefits they need to thrive (and that will allow you to attract the best local talent).
Our benefits packages in Ukraine are tailored to fulfill the local needs of your employees. Typically, our packages contain some or all of the following benefits:
Health Insurance
Dental Insurance
Vision Insurance
Mental Health Support
Pension or 401(K)
Life and Disability Insurance
Taxes in Ukraine
Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Ukraine.
22%
social security contribution
Types of Leave
Employees are entitled to at least 24 calendar days of paid leave, depending on their health and workload.
31 days: employees under the age of 18
26 – 30 days: employees with different types of disability; more severe disability will warrant more days off & vice versa
An employer must accept an employee's request for unpaid leave for a specified duration in certain cases (a honeymoon is one example). Apart from the mandatory provision of unpaid leave, an employer can (but has no obligation to) provide unpaid leave to an employee for family reasons or any based on any other request. Any unpaid leave will not exceed 15 calendar days a year.
Employment termination
Termination process
Ukrainian labor law mandates that employee contracts can only be terminated if just cause is established, from reasons ranging from redundancy, dishonesty, fraud, incapability to dispense work duties, etc.
Pregnant women, mothers with children below the age of three, single mothers with children under the age of 14, and mothers of children with disabilities are protected from termination on an employer’s initiative, except for the latter’s liquidation.
Notice period
The acceptable notice period for termination depends on the terms agreed upon by both parties, as well as circumstances surrounding the termination.
At the bare minimum, employers can only terminate employers with advance notice of:
2 months: for organizational or economic reasons, i.e. bankruptcy, liquidation, etc.
3 days: unsatisfactory probatory performance
For other unspecified situations, both parties can default to whatever agreement specified in the employment contract.
The employee and the company are both required to give the following periods of written notice (these are a minimum standard, but companies can choose to increase these periods if desired):
For employees of up to 4 years service - at least one month notice
For employees from 5 to 11 years of service - not less than one week notice for every completed year of continuous employment
For employees with more than 12 years of services - not less than three months notice
Severance pay
If an employment contract is deemed to be terminated because of the employer’s violation, the employee will be entitled to a severance package equal to three months’ pay, or six months’ wages, if the employee is a corporate officer.
Otherwise, if an employee is deemed redundant or unsuited for tasks required, the employee will be entitled to one month’s pay.
Probation periods
Probationary periods are limited to one month for blue-collar employees and three months for other employees.