Guide to employment, payroll and benefits in

Ukraine

Rivermate offers complete payroll, benefits and compliance services for

Ukraine

01. Overview

Last updated: 

August 19, 2021

Currency
Ukrainian Hryvnia
Capital
Kiev
Ease of doing business
70.2
Language
Ukrainian
Population
43733762
GDP growth
2.52%

02. Grow your team in

Ukraine

with Rivermate

Payroll, benefits, taxes, and compliance can be difficult to manage in

Ukraine

, particularly if you don't have established local relationships. You can hire employees in

Ukraine

effectively, conveniently, and in full compliance with all relevant labor laws using Rivermate's global employment solution. We handle the responsibilities and legal risks associated with foreign employment so you can concentrate on growing your company.

03. Summary

Ukraine is an Eastern European republic. It is Europe's second-largest nation, after Russia, with which it shares borders to the east and north. Ukraine is bordered on the north by Belarus, on the west by Poland, Slovakia, and Hungary, on the south by Romania and Moldova, and on the sea by the Sea of Azov and the Black Sea. It is the eighth-most populated country in Europe, with a land area of 603,628 km2 and a population of about 41.5 million people. Kyiv is the country's capital and largest city. Since 32,000 BC, people have lived on the modern-day territory of Ukraine. The region was a major center of East Slavic culture during the Middle Ages, with the dominant state of Kievan Rus' forming the foundation of Ukrainian identity. The region was disputed, ruled, and divided by a number of forces after its dissolution in the 13th century, including the Polish–Lithuanian Commonwealth, Austria-Hungary, the Ottoman Empire, and Russia. During the 17th and 18th centuries, a Cossack republic arose and prospered, but its territory was gradually divided between Poland and the Russian Empire. Following the Russian Revolution, a Ukrainian national movement for self-determination arose, and on June 23, 1917, the internationally recognised Ukrainian People's Republic was established. Following WWII, the western portion of Ukraine joined with the Ukrainian Soviet Socialist Republic, and the entire nation was absorbed into the Soviet Union. Following the breakup of the Soviet Union, Ukraine gained independence in 1991. Ukraine declared itself a neutral state after gaining independence, forming a small military alliance with Russia and other CIS countries while also forming a partnership with NATO in 1994. After President Viktor Yanukovych's government agreed to suspend the Ukraine–European Union Association Agreement and pursue stronger economic relations with Russia in 2013, the Euromaidan began a months-long wave of demonstrations and protests, which later culminated into the 2014 Ukrainian revolution, which led to Yanukovych's overthrow and the establishment of a new government. These events set the stage for Russia's annexation of Crimea in March 2014 and the start of the Donbas War in April 2014. Ukraine applied to the European Union for the economic portion of the Deep and Comprehensive Free Trade Area on January 1, 2016. Ukraine is a developing nation with a Human Development Index of 74. Along with Moldova, it is the poorest nation in Europe, with a high poverty rate and widespread corruption. Ukraine, on the other hand, is one of the world's largest grain exporters due to its vast fertile farmlands. After Russia and France, it also has Europe's third-largest military. Ukraine is a unitary republic with independent legislative, administrative, and judicial branches that operate under a semi-presidential structure.

04. Public holidays

05. Types of leave

Paid time off

Employees are guaranteed at least 24 calendar days per year and two days per month.Days that are not utilized accrue and can be utilized at a later time. It is calculated using the average pay for the previous 12 months.

Public holidays

Ukraine recognizes eleven public holidays.

Sick days

The first five days are covered by the employer, while the remaining days are covered by the Social Insurance Fund.Sick pay is calculated using the employee's average wage over the previous 12 months and is dependent on the employee's contribution period:50 percent of children aged 0 to 3 years60 percent in 3-5 years70% if you're between the ages of 5-8 years.8+ years – a hundred percentIf the employee’s contribution period is less than 6 months within the last 12 months, the sick leave is paid based on minimum wage.

Maternity leave

Maternity leave is for a total of 126 days. Take 70 days before delivery and 56 days after delivery.It can be extended to 140 days if a doctor recommends it, and to 180 days if the Chernobyl accident has damaged women.Maternity leave is provided at 100% of wages by the Social Insurance Fund.

Paternity leave

Paternity leave is not available, however dads can take advantage of the mother's maternity leave if she has returned to work. To be granted leave, the father must submit an application to his employer, together with a copy of the child's birth certificate, a document showing familial links, and a certificate from the child's mother's place of employment stating that she returned to work before her leave ended.

Parental leave

Mothers, dads, and grandparents can take unpaid parental leave once maternity leave ends until the kid reaches the age of three.

Other leave

Study leave – paid by the employer. The length of the leave depends on the duration of the exam period.Marriage leave – up to 10 daysBereavement leave – up to 7 days unpaid.

06. Employment termination

Termination process

Employers may dismiss an employee under an indefinite contract for business reasons unrelated to the employee, such as firm liquidation or reorganization, or for employee performance reasons. Employees who are terminated for business reasons are generally entitled to two months' notice.


Employers must adhere to specified protocols when terminating an employee for performance reasons or redundancy. Employees who are laid off due to redundancy are entitled to severance pay. Severance pay is typically one month, but may be increased in very limited instances.

Notice period

If the employer initiates the termination, the employer must provide two months notice prior to the termination date. If the employee initiates the termination, it must be in writing 14 days prior to the termination date. If the termination is mutual, no notice period is required.

Severance pay

Severance pay is tantamount to a one-month salary, on average.

Probation period

Probation periods are limited to one month for unqualified employees and three months for specialists and managers.

07. Working hours

General

Eight hours per day and forty hours per week, spread over five days, is the standard work period. Employers may also establish a six-day workweek with days lasting no more than seven hours. Employees who work in hazardous or difficult conditions, as well as young workers, are entitled to workweek reductions.

Overtime

Overtime is permitted only in the event of an emergency or an immediate need and is limited to four hours per day for two consecutive days and 120 hours per year. Employees are compensated extra for working overtime.


Additional overtime work may be required in exceptional circumstances, such as when production is disrupted by an accident or to avoid downtime.


Pregnant women and women with children under the age of three are not permitted to work overtime. Employees under the age of 18 and those enrolled in school are also prohibited from working overtime.


Women with children aged 3 to 14 and people with disabilities are permitted to work overtime with their explicit consent.


Overtime pay is 200 percent of the regular hourly wage on weekdays. It cannot be made up for by adding another day of rest. Working on rest days is compensated at 200 percent of the regular hourly wage or by providing an additional day of rest. Working on holidays is compensated at a rate of 200 percent of the regular hourly wage. It cannot be made up for by adding another day of rest.

08. Minimum wage

General

The minimum salary level in Ukraine is now UAH 60,000 per month.

09. Employee benefits

General

Employers in Ukraine often offer private health insurance coverage due to the low quality of the public health system.

In Ukraine, meal coupons are an optional bonus.

10. Why Rivermate as your Employer of Record / PEO?

Establishing an entity in

Ukraine

to hire a team takes time, money, and effort. The labor law in

Ukraine

has strong worker employment protection, requiring great attention to details and a thorough awareness of local best practices. Rivermate makes expanding into

Ukraine

simple and effortless. We can assist you with hiring your preferred talent, managing HR and payroll, and ensuring compliance with local legislation without the hassle of establishing a foreign branch office or subsidiary. Our PEO and Global Employer of Record solutions in

Ukraine

give you peace of mind so you can focus on running your business.

Please contact us if you'd like to learn more about how Rivermate can help you hire employees in

Ukraine

via our Employer of Record / PEO solution.

Ready to get started? Our friendly staff is ready to assist you with all your questions, let's connect.