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Overview
Ukrainian Hryvnia (UAH)
CURRENCY
Kiev
CAPITAL
monthly
PAYROLL FRECUENCY
12
PUBLIC HOLIDAYS
0 to 22
EMPLOYER TAXES
13TH / 14TH SALARY
The 13th Salary in this region is usual and typically given at the end of the year.
Employee and employeer taxation in Ukraine
Employer
Company Payroll Contributions
0% - 22%
Unified Social Contributions (annual max. of 237,600 UAH)
0% - 22%
Total Employment Cost
Employee
Worker Payroll Contributions
0%- 0.60%
Social Security
0% - 0.6%
Total Employee Cost
Employee Income Tax in Ukraine
Worker Income Tax
18%
Flat Rate
1.50%
Defense/Military Levy
19.50%
Combined Flat Rate
Payroll Contributions in Ukraine
Payroll Cycle
In Ukraine, the payroll cycle is biweekly and occurs twice a month, on the 15th and 20th of every month as well as the 31st and 7th of the next month. Doing payroll outsourcing with the support of an Employer of Record in Ukraine, can help managers to alleviate their responsibility charge.
13th Salary
The law contains no provisions for 13th salaries.
Employee Benefit in Ukraine
Taxable perks include:
- Bonuses.
- Health insurance for workers and relatives.
- Food allowance.
- Car allowance.
- Phone expenses.
Visa and work permit in Ukraine
Businesses of foreign citizens have few choices under Ukrainian immigration legislation. D visas are not required for citizens of Armenia, Azerbaijan, Georgia, Belarus, Russia, Uzbekistan, and Moldova. North Macedonian nationals are free from needing a D visa for a number of reasons, including job and family reunion. Depending on the reason for stay and visa classification, there are various needs, processing timeframes, employment qualifications, and advantages for accompanying family members.
For a brief stay, business travelers to Ukraine typically need a C visa, unless they are exempt due to their nationality. Single, double, or numerous entries are frequently allowed with C visas. They are given for a period of six months, or for the length of the desired visit, but not for more than five years.
The maximum stay for business travelers is 90 days in a period of 180 days. If they can provide strong justification and proof of sufficient means, they may submit an application for an extraordinary prolongation of stay for a total duration of 6 months computed from the date of admission. The permitted activities for visitors who are on business are restricted.
The two primary types of work permission are the Work/Temporary Residence Visa for foreign companies with a representative office in Ukraine and the Temporary Residence Permit/Accreditation Card for Ukrainian companies. Depending on the position, level of education, and remuneration of the foreign national, work visas can be granted for one to three years and can be renewed. Accreditation Cards can be renewed and are provided for a maximum of three years.
VAT in Ukraine
In Ukraine, the usual VAT rate is 20%. When looking for a way to keep compliant, companies can benefit from having an Employer of Record in Ukraine by their side.
Working Hours in Ukraine
General
The typical workweek is 40 hours spread out over five days. A company can also set up a six-day, seven-hour work week. With Employer of Record services in place, companies will be able to have contracts that establish the general working hours of their employees. Therefore, hiring EOR companies can be very beneficial.
Overtime
Overtime is compensated for work that exceeds the usual weekly work hours and is governed by the employment agreement or contractual arrangements. There are restrictions on how many hours an employee can work when they are told to work extra shifts or on holidays. These maximums are four hours over two days and no more than 120 hours each year.
When companies hire Ukrainian employees, they must know that:
- Workers who are expecting or have kids under the age of three, employees under the age of eighteen, and employees enrolled in college or university are not permitted to work overtime.
Employers must obtain permission to work overtime from women with children aged 3 to 14 and individuals with disabilities.
Overtime may be required in the event of a production disruption caused by an accident or to avoid downtimes.
Overtime hours over 40 hours per week are compensated at a level of 200.00% of an employee's regular hourly rate. Overtime work completed on a resting day may be paid with another resting day in lieu of remuneration.
Working Week
Monday to Friday.
Employee Termination in Ukraine
Termination Process
Depending on the type of contract and the grounds for termination, the termination procedure differs according to the contract of employment and collective agreement. In general, Ukrainian laws substantially safeguard an employee's rights, and pre-pension employees, pregnant women, and women with young children are all exempt from being fired.
Notice Period
The person who initiates the termination will determine the notice period in the following ways:
- When the employer starts the termination, two months' notice is necessary.
- When the employee starts the termination, a 14 days’ notice is necessary.
- Dismissal by mutual agreement does not require a notice period.
Severance Pay
For each two years of employment, the severance payment in Ukraine is equal to one month's income.
Probation Period
The employee's work role determines the length of the probationary period. For non-qualified employees, the probationary term is one month; for managers and specialists, it is three months.
Employee Leaves in Ukraine
Paid Time Offs
After finishing at least 6 months of ongoing employment, workers are eligible for a minimum of 24 days of compensated yearly leave. Minors and individuals with tough and risky tasks may be entitled to more paid leave.
Public Holidays
There are 12 national holidays throughout the year.
Vacation Holidays
There are 24 vacation holidays throughout the year.
Sick Days
The law guarantees employees 4 months of compensated sick time. The employer pays during the first 5 days of sick leave, and the Social Insurance Fund pays for the rest.
The amount of compensation provided by the Social Insurance Fund is determined on the employee's seniority:
- Payment is based on the minimum wage for less than 6 months of work.
- 0-3 years of experience: 50.00% of the average wage.
- 3-5 years of experience: 60.00% of the average wage.
- 70.00% of the employee's typical wage after 5-8 years of service.
- 8 or more years of service: 100.00% of the employee's average income.
Paternity Leave
In Ukraine, there is no compensated paternity leave. Fathers, on the other hand, are entitled to two weeks of leave for childbirth. If the mother has returned to work, fathers can also obtain leave from her maternity leave. A father must appeal to his employer and present a copy of the child's birth certificate, paperwork showing familial links, as well as a certificate from the mother's place of employment certifying her return to work in order to do so.
Other Leave
An employee may be permitted additional leave types, with approval from the employer and employee, depending on the terms of the collective bargaining agreement or the employment contract:
- Bereavement: A worker has the right to up to seven days of bereavement leave in the event that a member of their immediate family passes away.
- Marriage: If an employee gets married, they are entitled to ten days off.
- Workers are eligible to paid study time off, which the company will cover. The duration of the leave is determined by how long the exam session lasts.
Maternity Leave in Ukraine
In Ukraine, an employee is entitled to 126 compensated fiscal days of leave, 70 of which need to be taken before the child's projected due date and 56 after birth.
Maternity leave is compensated at 100.00% of the employee's average income by the Social Insurance Fund.
There are 126 leave throughout the year.