Effortless Hiring in Ukraine

Employment Laws

• The Labor Code of Ukraine governs employment relationships, outlining regulations on contracts, working conditions, and employee rights.
• The Law of Ukraine "On Amendments to Certain Laws of Ukraine on Optimizing Labour Relations" introduces specific provisions, especially during martial law periods.

Onboarding Process

Employers typically require:

• A written employment contract in Ukrainian, detailing job responsibilities, working hours, compensation, and terms of employment.
• Verification of the employee's right to work in Ukraine, including necessary work permits for foreign nationals.
• Completion of personal data forms and submission of identification documents.

Types of Employment Contracts

• Indefinite-Term Contracts: Standard employment agreements without a specified end date.
• Fixed-Term Contracts: Agreements set for a specific duration or until the completion of a particular task.
• Probationary Contracts: Initial trial periods to assess suitability, typically not exceeding three months for specialists and managers, and one month for non-qualified employees.

Payroll Frequency

• Employees are generally paid on a monthly basis, with payments typically made between the 15th and 20th of each month.

Minimum Wage

• As of 2023, the minimum monthly wage in Ukraine is UAH 6,700, equating to an hourly rate of approximately UAH 40.46.

Payroll Deductions

• Personal Income Tax (PIT): A flat rate of 18% on gross income.
• Military Tax: An additional 1.5% levied on gross income.
• Unified Social Contribution (USC): Employers contribute 22% of the employee's gross salary to social security funds.

Employee Income Tax

• Employees are subject to a flat Personal Income Tax (PIT) rate of 18% on their gross income, in addition to a Military Tax of 1.5%.

Employer Contributions

• Employers are required to contribute 22% of each employee's gross salary to the social security system through the Unified Social Contribution (USC).

Types of leave in Ukraine

1. Annual Leave

• Employees are entitled to a minimum of 24 calendar days of paid annual leave.

2. Parental Leave

• Maternity Leave: Female employees are granted 126 calendar days (70 days before and 56 days after childbirth). In cases of multiple births or complications, the leave extends to 140 days. Compensation during maternity leave is provided by the Social Insurance Fund and varies based on the employee's length of service.
• Paternity Leave: Fathers are entitled to 14 days of unpaid leave upon the birth of a child.
• Parental Leave: Either parent can take unpaid leave until the child reaches three years of age.

3. Sick Leave

• Employees are entitled to paid sick leave, with compensation rates dependent on their length of service. Employers cover the initial five days, after which the Social Insurance Fund provides payments.

4. Other Leave

• Bereavement Leave: Up to seven days for the death of an immediate family member.
• Marriage Leave: Ten days for an employee's wedding.
• Study Leave: Paid leave for examinations, with duration depending on the length of the exam period.

Mandatory Benefits

1. Social Security: Coverage includes pensions, unemployment benefits, and temporary disability assistance, funded through the Unified Social Contribution.

2. Health Insurance: While not mandatory, many employers offer private health insurance as part of their benefits package.

Supplemental Benefits

Employers may provide additional perks such as meal allowances, transportation benefits, and wellness programs to attract and retain talent.

Process

Termination must be justified by valid reasons such as redundancy, employee misconduct, or inability to perform duties. Employers are required to provide written notice and adhere to due process, including consultations with trade unions if applicable.

Notice Period

• For employee-initiated termination: Employees must provide at least two weeks' notice.
• For employer-initiated termination: Notice periods vary based on the reason for termination and the terms specified in the employment contract.

Severance Pay

In cases of redundancy or certain other terminations, employees are entitled to severance pay equivalent to at least one average monthly salary.