Talent Wiki - Ukraine
Your quick guide on talent and labor compliance norms in Ukraine
Capital
Kyiv
Currency
Hryvnia (UAH)
Languages
Ukrainian
Payroll Frequency
Bi-weekly and Monthly
GDP per Capita
$4,830 (2022)
Employer Tax
22%
Talent Overview
Ukraine is standing in 130th freest in the 2022 index with a 54.1 freedom score. The country holds the 44th position in the Europe region for economic development. The country has developed and progressed its economy with Industrialisation.
Major economic hubs:
Kyiv (Kiev), Kharkiv (Kharkov), Dnipropetrovsk, Odesa (Odessa)
Skills in demand:
IT Engineer, Data Scientist, Chief Financial Officer
Local Universities
The table below mentions the top local universities in Ukraine with world rank:
National Technical University of Ukraine Kyiv Polytechnic Institute
RANKING
Local: 1
World : 1,118
Lviv Polytechnic National University
RANKING
Local: 2
World : 1,457
V. N. Karazin Kharkiv National University
RANKING
Local: 3
World : 1,840
Taras Shevchenko National University
RANKING
Local: 4
World : 1,959
Ivan Franko National University of Lviv
RANKING
Local: 5
World : 2,012
Salary Data
Average salary data in Ukraine are mentioned below:
| Job Title | Average Monthly Salary (UAH) | Average Monthly Salary (USD) |
| Financial Manager | 47,700 UAH | 1287.01 USD |
| General Manager | 40,700 UAH | 1098.14 USD |
| Business Development Manager | 37,600 UAH | 1014.50 USD |
| Project Manager | 29,500 UAH | 795.95 USD |
| Financial Analyst | 29,400 UAH | 793.25 USD |
| Business Analyst | 27,800 UAH | 750.08 USD |
Employing in Ukraine
In order to hire an individual from Ukraine, the employer should have information about the employment laws and regulations along with leaves, allowances, and bonuses. This section provides all the information for them.
Employee Contract:
In Ukraine, the employment contract is mandatory. The employer has to provide the contract to the employee at the time of onboarding. The contract should mention all the terms and conditions with bonuses and allowances.
Probation Period:
The probationary period for employees ranges from 1 – 3 months.
Public and Provincial Holidays 2023
| Date | Holiday | Type |
| 1 Jan | New Year’s Day | National Holiday |
| 2 Jan | New Year Holiday | National Holiday |
| 7 Jan | Orthodox Christmas Day | National Holiday |
| 9 Jan | Orthodox Christmas Holiday | National Holiday |
| 8 Mar | Women’s Day | National Holiday |
| 16 Apr | Orthodox Easter Sunday | National Holiday |
| 17 Apr | Orthodox Easter Monday | National Holiday |
| 1 May | Labor Day | National Holiday |
| 9 Sep | Victory Day over Nazism in World War II | National Holiday |
| 4 Jun | Orthodox Whit Sunday | National Holiday |
| 5 Jun | Orthodox Whit Monday | National Holiday |
| 28 Jun | Constitution Day | National Holiday |
| 24 Aug | Independence Day | National Holiday |
| 14 Oct | Defender’s Day | National Holiday |
| 16 Oct | Defender’s Day Holiday | National Holiday |
| 25 Dec | Catholic Christmas Day | National Holiday |
Employee Leaves:
| Type of Leave | Time Period | Mandatory |
| Annual/Earned Leave | 24 days | Yes |
| Sick Leave | 28 days | Yes |
| Maternity Leave | 17 weeks | Yes |
Payroll
Payroll Cycle
Workers are paid twice a month with an interval between payments not exceeding 16 days (advance payment and final salary payment). The bi-weekly cycle runs between the 15th and 20th of the particular month and the 31st and 7th of the following month.
Minimum Wage
Minimum wage in Ukraine is UAH 6,500.00 per month or UAH 39.26 per hour
Overtime Pay
Employees in Ukraine are paid double their hourly rate for overtime work.
Bonus
13th Month Pay:
Ukraine does not require a 13th-month bonus. However, some companies offer gratuities or performance bonuses each year.
Employee Benefits:
Some of the benefits offered to Ukrainian employees are the following:
- Unemployment Insurance
- Healthcare
- Short-term and Long-term Disability Insurance
- Pension
Taxes
Employer Payroll Tax:
| Category | Contributions |
| Social Security Contributions | 22% |
Employee Payroll Tax:
| Category | Contributions |
| Unemployment Fund | 0.6% |
Employee Income Tax:
| Category | Contributions |
| Flat rate income Tax | 18% |
| Mandatory Military Tax | 1.5% |
VAT:
There are four VAT rates in Ukraine: 20%, 14%, 7%, and 0%.
Offboarding & Termination
The contract can be terminated by the employee in the following cases:
- He may not perform his duties due to his illness.
- He is recognized as disabled
- If such termination is a result of the relocation of an employee, pregnancy, or medical reasons – all of which need to be supported by documents.
- If an employer violates terms of labor
The contract can be terminated by the employer in the following cases:
- Staff reduction
- Liquidation of the company
- Violation of labor agreement
- If the sick leave of the employee exceeds a 4-month term
- Professional or medical non-compliance of employee
The notice period for both permanent and probationary employees is 2 weeks.
The employee is entitled to one month’s pay as severance pay.
Visa and Immigration
Foreigners must have a work permit and work visa to legally work in Ukraine. The work permit will be applied for by their employer, while the work visa will be applied for by the employee. A work visa is valid only for 90 days, so employees will need to apply for a residence permit to remain in the country for a long period of time.
