Employer of Record in Ukraine

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Effortless hiring in

Ukraine

Ukraine, the largest country in Europe by land area, is often called the "Breadbasket of Europe" due to its fertile soil and agricultural exports. It boasts a rich cultural heritage, with iconic landmarks like Saint Sophia’s Cathedral and the Kyiv Pechersk Lavra in Kyiv. Ukraine is also home to the Chernobyl Exclusion Zone, a haunting yet fascinating site of historical significance. Its vibrant folk traditions, music, and art reflect a deep sense of national pride, while the Carpathian Mountains and Black Sea coast offer stunning natural landscapes.

Languages

Ukrainian

Population

39.7 Million

Capital City

Kyiv

Currency

Ukrainian Hryvnia (UAH)

Cost of living ranking

111th

VAT (Value Added Tax)

20%

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 Management in

Ukraine

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.

Taxation in

Ukraine

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).

Leave in

Ukraine

Types of leave in Ukraine

Annual Leave

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

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.

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.

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.

Benefits in

Ukraine

Mandatory Benefits

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

Termination in

Ukraine

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.

ON THIS PAGE

Overview

Hiring

Payroll

Taxes

Leave

Benefits

Termination

Employment Laws

Onboarding Process

Types of Employment Contracts

Payroll Frequency

Minimum Wage

Payroll Deductions

Employee Income Tax

Employer Contributions

Types of leave in Ukraine

Mandatory Benefits

Supplemental Benefits

Process

Notice Period

Severance Pay

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