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Ukraine

Basic Economic Summary

Ukraine is the largest country in Europe with a wide transportation network and a growing technology hub. The nation produces a massive number of graduates every year and many organisations are looking to tap into the potential of the young population. With a working population of 24.5 million and a literacy rate of 99.7%, Ukraine is home to a bunch of progressive and skilled professionals. The country also ranked among the top five in the Global Skills Index 2020 in technology and the budding talent are proving their mettle in graphic design and software development spaces.

Overview

  • Local Languages: Ukrainian, Polish, Russian,Bulgarian, English
  • Major Economic Hubs: Washington, D.C., New York City, California
  • Capital: Kyiv, Lviv, Kharkiv and Dnipro
  • Currency: Ukrainian Hryvnia
  • Population: 43.39 million (2021)
  • Date Format: dd/mm/yyyy

Useful Information

  • GDP Per Capita (in USD): 3,726.92
  • Exchange Rate (UAH/USD): 0.037
  • PISA Ranking (2018): 40
  • Number of University Graduates (2018): 412,900

Local Universities

Top Local Universities

University Rankings
National Technical University of Ukraine Kyiv Polytechnic Institute Ranking in Ukraine: 1, World Ranking: 1226
Taras Shevchenko National University of Kyiv Ranking in Ukraine: 2, World Ranking: 1414
National University of Kyiv-Mohyla Academy Ranking in Ukraine: 3, World Ranking: 2180
Ivan Franko National University of Lviv Ranking in Ukraine: 4, World Ranking: 2287
Lviv Polytechnic National University Ranking in Ukraine: 5, World Ranking: 2315

Salary Data

Average Salary of Jobs (Per Month)

Job Title Salary Range (in UAH) Salary Range (in USD)
Technical Product Engineer 11,000 - 32,300 403.38 - 1184.47
Software Developer 10,400 - 35,000 381.38 - 1283.48
Data Analyst 10,600 - 32,100 388.71 - 1177.14
UX Designer 9,400 - 31,600 344.71 - 1158.80
Project Manager 14,300 - 40,900 524.39 - 1499.84
Sales Executive 14,300 - 45,700 524.39 - 1675.86
Chief Accountant 7,550 - 25,400 276.87 - 931.44

More information about average salaries in Ukraine can be found on SalaryExplorer.

Talent Sourcing Tips

Taxes

Employer Payroll Tax

Employers need to contribute 22% of the wages to social security.

Employee Payroll Tax

Employees pay 0.6% into the state fund for unemployment benefits.
Income tax is levied at 18% to all incomes received as salary and other benefits under the employee and civil service agreements. This rate also applies to passive income such as dividends, royalties, interests etc. There is also an additional temporary 1.5% of military tax being levied on personal income until the reformation of the Ukrainian Military Forces is completed.

Employee Monthly Income Tax

Income tax is levied at 18% to all incomes received as salary and other benefits under the employee and civil service agreements. This rate also applies to passive income such as dividends, royalties, interests etc. There is also an additional temporary 1.5% of military tax being levied on personal income until the reformation of the Ukrainian Military Forces is completed.

Minimum Wage & Payroll

Minimum Wage

The minimum wage in Ukraine is 6500 UAH per month.

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 31st and 7th of the following month.

Bonus

13th month salary

Ukraine does not require a 13th month bonus.

Working Hours & Statutory Leave

Working hours

The general working hours as per law in Ukraine is 40 hours a week, which is essentially 8 hours for 5 days a week.

Overtime pay

Any hours exceeding the regular 40 working hours a week is considered overtime and should get paid at 200% over an employee’s normal salary. The maximum number of hours is four in two consecutive days.

Public Holidays

There are a total of 21 public holidays in Ukraine. The list of public holidays can be found here.

Leave

Annual Paid Leave

The allowed minimum amount of annual leave for each employee in Ukraine is 24 calendar days. However, it is higher in the following cases:

  • 31 days of calendar leave for employees under 18
  • Between  26 to 30 days of calendar days of annual leave for disabled employees

Sick Leave

Employees are entitled to sick leave and are given benefits based on the duration of their employment - 

  • 60% for 5 years or less
  • 80% for 5-8 years
  • 100% for more than 8 years

Parental Leave

  • Maternity Leave

A female employee is entitled to 70 days of maternity leave before the expected delivery date and between 56-70 days after delivery. She is also allowed to take a partially paid leave until her child reaches the age of 3 years.

  • Paternity Leave 

There is no paternity leave offered.

Offboarding & Termination

Termination Process

The contract can be terminated by the employee in the following cases:

  • He may not perform his duties due to his illness.
  • He is recognised disabled
  • If such termination is a result of relocation of employee, pregnancy, medical reasons - all of which need to be supported by documents.
  • If employer violates terms of labour

The contract can be terminated by the employer in the following cases:

  • Staff reduction
  • Liquidation of the company
  • Violation of labour agreement
  • If sick leave of the employee exceeds 4 month term
  • Professional or medical non-compliance of employee

Notice Period‍

Employees must be given about two weeks of notice period before termination. However, when the employer terminates the services of the employee for financial or restructuring reasons, the notice period is of two months.

Severance Pay‍

One month’s salary, or three months salary if the employer breaks the agreement or the Ukrainian labour laws.

Probation period‍

Three months in most organisations.

VAT

Ukraine levies a VAT of 20%.

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