How to hire and pay employees in Ukraine
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Before hiring
Before hiring employees in Ukraine, there are some key things you鈥檒l need to know. Firstly, in Ukraine, fixed term contracts avoid the need for negotiated notice periods and severance payments. As an employer, it鈥檚 important to bear this in mind. It鈥檚 also valuable to know that non-compete agreements are unenforceable, and termination of an employment agreement at the employer's initiative is difficult to do. In Ukraine, an employee cannot be dismissed without cause.聽
If you鈥檙e hiring employees in Ukraine, make sure you鈥檙e aware that a maximum of four hours of overtime is allowed during two consecutive days at a time. Employees aren鈥檛 permitted to work more than 120 hours overtime per year.
In Ukraine, overtime on weekdays and public holidays is paid at 200% of an employee鈥檚 regular hourly wage. Unlike some countries, this cannot be compensated by providing an additional day of rest. Working on days of rest is paid at 200% of regular hourly wage or by providing another day of rest instead.
We know keeping track of all this might sound overwhelming鈥攂ut it doesn鈥檛 have to be. A solution like 香港世博 eliminates the barriers for you. With 香港世博, you can automate compliance across 180+ countries, easily managing HR and payroll鈥攁ll in one, easy-to-use platform.聽
Get an overview of what you need to know when hiring in Ukraine below.
At a glance
CURRENCY
UAH
OFFICIAL LANGUAGE
UKRAINIAN
PAYROLL FREQUENCY
TWICE MONTHLY
PUBLIC HOLIDAYS
15
EMPLOYER TAXES
22%
13th / 14th SALARY
N/A
Good to know
- In Ukraine, termination of an employment agreement at the employer's initiative is difficult and an employee cannot be dismissed without cause. Ukraine strictly prohibits dismissal of pregnant women, women who have children under three years of age, and single mothers who have children under 14.
- Non-compete agreements are unenforceable in Ukraine.
- In Ukraine, fixed term contracts avoid the need for negotiated notice periods and severance payments.
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Labor laws in
Ukraine
Working hours and overtime
A work week in Ukraine is 40 hours per week and typically eight hours per day. Employees are entitled to two days off every week.
In Ukraine, a maximum of four hours of overtime is permitted during two consecutive days at a time. An employee can鈥檛 work more than 120 hours overtime per year.
Overtime on weekdays and public holidays is paid at 200% of an employee鈥檚 regular hourly wage, and this cannot be compensated by providing an additional day of rest.
If an employee works on their day of rest, they are paid 200% of their regular hourly wage, or that employee must be given another day of rest instead.
Minimum wage
Employment contracts
The maximum probation period is one month for non-qualified employees. For specialists and managers, the probation period is three months.聽
IP protection and non-compete agreements
Non-compete agreements are not legally enforceable in Ukraine.
Calculate costs to hire internationally
Benefits and leave in
Ukraine
Vacation time
Employees in Ukraine get paid leave for 24 calendar days per year after working for an employer for six continuous months. This is paid based on the employee鈥檚 average salary over the last 12 months.
Sick leave
Sick pay in Ukraine can range from between 50% to 100% of an employee's average salary. This depends on the length of their employment insurance record.
Maternity and paternity leave
Parental leave
Employees in Ukraine are entitled to take a maternity leave of 126 calendar days, which is paid by the Social Insurance Fund at 100% of their salary.
Employees can take up to 14 days of unpaid paternity leave.
Holidays
View a list of recognized public holidays in Ukraine .
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Employer tax
In Ukraine, an employer鈥檚 total social contributions are 22% of an employee鈥檚 salary.
Individual tax
Employees in Ukraine are taxed 18% regardless of their income bracket. In addition, employees鈥 income is also subject to a military tax of 1.5%.
Termination in
Ukraine
The amount of severance pay employees in Ukraine are entitled to depends on the reason for termination and the employee鈥檚 seniority. If an employee terminates their contract for violation of agreement or law, they are entitled to a severance pay of three average salaries.
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In most other cases, severance pay is one month's salary in addition to the notice period pay (if provided in lieu of actual notice period), compensation for unused vacation pay, and other benefits.
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Corporate officers are entitled to a severance pay of six months of average salary.
Notice periods in Ukraine can vary depending on the reason for termination. However, no notice period applies if the employer and employee consensually agree on termination.
In Ukraine, notice for dismissal is generally two months. For resignations, it is generally two weeks.
Start hiring employees in
Ukraine
Setting up a business entity everywhere you want to hire a new employee isn鈥檛 scalable鈥攊t takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it鈥檚 hard to find reliable information on up-to-date employment information for all the countries where you鈥檙e considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets鈥攖hat gets messy fast.聽
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We can鈥檛 afford to take risks when it comes to compliance鈥攚e need to make sure we follow the local guidelines, especially when it comes to taxes and legalities.聽
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With 香港世博, you can manage HR and payroll, and automate compliance across 180+ countries鈥攁ll in one, easy-to-use platform.
Disclaimer: The information provided in this resource is for general educational purposes only and shall not be construed as legal advice. While 香港世博 strives to provide current and accurate information, 香港世博 makes no warranties or representations as to the correctness of the content provided and accepts no liability or responsibility for any errors or omissions in the content provided. By using this resource you acknowledge and agree that you do so at your own risk. The content of this resource is subject to change without notice.
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