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Europe

Ukraine

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Employer of Record (EOR) in Ukraine

What you'll learn

  • Country Introduction
  • Tax Breakdown for Employers
  • Statutory Leave Laws
  • Minimum Wage and Working Hours
  • Termination Process
  • Additional Information
Ukraine Introduction

Ukraine is a country in eastern Europe bordered by Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova. The country’s coastline stretches along the Black Sea and the Sea of Azov. Russia launched a full-scale invasion of Ukraine in February 2022 as part of the ongoing Russo-Ukrainian War. Ukraine has continued to seek closer economic, political, and military ties with the Western world, including with the US, EU, and NATO.

Paid Leave and Statutory Leave

Parental Leave

Pregnant employees are entitled to 126 days of maternity leave, of which 70 days must be taken before the due date (and 56 after). This leave is covered by social insurance at 100% of the salary.

While there is no paid paternity leave in Ukraine, fathers can take 2 weeks of unpaid leave for the birth of their child. After the maternity leave is over, mothers, fathers, and grandparents can take unpaid parental leave before the child turns 3.

Sick Leave

Employees in Ukraine are entitled to 4 months of paid sick leave. The first 5 days are compensated by the employer, and the rest is covered by social insurance between 50%-100% of the salary (depending on how long they’ve worked at the company).

Paid Leave

Ukraine has 12 public holidays, and employees are entitled to 24 days of paid time off each year (after finishing 6 months of employment at their company). Employees can also receive leave for marriage, study, or bereavement.

Wage Requirements and Working Hours

The minimum wage in Ukraine is UAH 6,700 per month, and a standard workweek is 40 hours at 8 hours per day. Overtime work is regulated by the employment contract or collective agreements, and there are maximums for the number of hours allowed (usually 120 hours per year). Overtime is paid at 200% of the regular salary. Pregnant employees or those with children under the age of 3 are forbidden from working overtime.

Termination Process

Process

The termination process depends on the employment contract or collective agreement and reason for termination. Pregnant employees, women with children under three years of age, and pre-pension employees are all protected against terminations.

Notice Period

The standard notice period for terminations by the employer is 2 months.

Severance Pay

The average severance payment in Ukraine is 1 month’s salary for every 2 years of employment.

Additional Information

N/A

OVERVIEW
Language(s):
Ukrainian
Currency:
Ukrainian Hryvnia (UAH)
Capital City:
Kyiv
Population:
39.7 Million
Cost of Living Rank:
112th
VAT (Valued Added Tax):
20%
Employer TaxES
22%
(estimated)

★  22% - Unified Social Contributions

Simplified Global HR and Payroll.
Let’s work on it together.

We've made the process really simple
with only 3 steps.

1

Remote candidate

You've sourced a full-time employee or contractor located in a country where your company is not incorporated.

2

Cost Calculation

Pass us the details of your candidate and we will let you know exactly what it costs to employ your candidate in that country.

3

Onboarding & Admin

Sit back and relax as we onboard your new team member and take care of all the local compliances and admin work.

Same-day onboarding
Best Pricing
Available in 150+ countries
How Remofirst employs in Ukraine

It can be prohibitively expensive to establish an entity in every country you want to hire talent in, so Remofirst will hire and pay your employee on your behalf while you manage their daily duties. Remofirst will handle formal HR procedures and employment contracts that adhere to local laws, so that you can simply approve invoices via our platform. When you work with an Employer of Record (EOR) you can compliantly hire the best employees around the world.

How employees in Ukraine get paid
Your employee's hours, time off, holidays, bonuses, and commissions are automatically calculated into payroll. Remofirst will invoice you in either US Dollars (USD), Euros (EUR), British Pounds (GBP), Canadian Dollars (CAD), or Singapore Dollars (SGD) around the 15th of each month to make sure your employees in Ukraine are paid on time in Ukrainian Hryvnia (UAH). To make it even easier, you can summarize your entire global team's salaries to aggregate them into one payment (instead of many individual payments).
Full-time Employees vs Global Contractors

Unlike full-time employees, contractors work on projects with multiple companies at a given time and are technically self-employed. Full-time employees are solely focused on their employer and usually receive benefits (such as health insurance, equity or stock options, and time off) as an additional form of compensation. While it can be cheaper to work with international contractors instead of paying benefits to a full-time employee, you run the risk of misclassification. It's recommended to work with an EOR for contractor onboarding and payments, so you can know that your international contractors are paid compliantly and on time.

Dependable support for employees
Whenever the employee or employer has a question about benefits, Visas, or anything else related to international employment in Ukraine, they can use our platform's chat function to get answers from our team of experts. Every client of Remofirst also receives a dedicated account manager that will serve as a point of contact for global HR support.