Payroll and Benefits Guide - Ukraine

Ukraine
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Currency

Ukrainian Hryvnia (UAH)
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Capital

Kyiv
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Employer Taxes

22.00%

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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Ukraine is the largest country entirely within Europe, covering an area of about 603,500 square kilometers.

The country’s capital and largest city is Kyiv (Kiev).

It is the second-largest country in Europe in terms of population, with over 44 million people.

The Chernobyl disaster, one of the worst nuclear accidents in history, occurred in Ukraine in 1986.

Ukraine is home to the world’s deepest metro station, the Arsenalna station in Kyiv, which reaches a depth of 105.5 meters.

The city of Odessa is famous for its beautiful beaches along the Black Sea coast and its vibrant nightlife.

Ukraine

Contributions

Employee Payroll Tax

Contribution TypeRate
Social Security0.60%

Employer Payroll Tax

Contribution TypeRate
Unified Social Contributions22.00%

Payroll

Payroll Cycle

The payroll cycle is bi-weekly.

13th Salary

There are no legal provisions regarding 13th salaries.

Work Hours and Week

The standard workweek consists of 40 hours over the course of five days. An employer can also establish a working week for six days of seven hours.

Overtime

Work in excess of the standard weekly work hours is to be paid as overtime and is regulated by the employment contract or collective agreements. When an employee is requested to work overtime or work on holidays, there are maximums in relation to the number of hours allowed. These maximums are 4 hours during two consecutive days and not more than 120 hours per year.
Ukraine

Leave

Paid Time Off

Employees are entitled to a minimum of 24 days of paid annual leave after completing at least 6 months of continuous employment. The paid leave entitlement may increase for minors and employees with difficult and dangerous jobs. Unused days can be accumulated for future use.

Public Holidays

Public holidays falling on weekends are moved to another day in lieu.

Sick Days

Employees are entitled to four months’ paid sick leave. The employer compensates the first five days of sick leave and the rest is compensated by the Social Insurance Fund.

Maternity Leave

The maternity leave entitlement in Ukraine allows an employee 126 paid calendar days of leave, 70 of which must be taken before the estimated due date of the child and 56 after the birth.

Social Insurance Fund compensates maternity leave at 100% of the employee’s average salary.

Paternity Leave

There is no paid paternity leave in Ukraine, however, fathers can take two weeks of unpaid leave for the birth of a child. Fathers can also acquire leave from the mother’s maternity leave if she has returned to work.

In order to do this, a father must apply to his employer and provide them with a copy of the child’s birth certificate, a document confirming family ties, and a certificate from the mother’s place of employment confirming her return to work.

Parental Leave

After maternity leave ends, mothers, fathers, and grandparents can take unpaid parental leave until the child turns 3.

Termination

Termination Process

The termination process varies according to the employment agreement and collective agreement and is based on the type of contract and reason for termination. In general, an employee’s rights are strongly protected by legislation and pregnant women, women with children under three years of age, and pre-pension employees are all protected against dismissal.

Notice Period

The notice period is dependent on the individual initiating the termination as follows:

  • 2 months’ notice when the employer initiates the termination
  • 14 days written notice when the employee initiates the termination
  • Termination by mutual agreement has no notice period requirement

Severance Pay

In Ukraine, the severance payment is one month’s salary for every two years of employment.

Probation Period

Probation Period

The probation period is dependent on the job role of the employee. The probation period for a non-qualified employee is one month and three months for specialists and managers.

Immigration

Ukrainian immigration law provides limited options for employers of foreign nationals. Nationals of Azerbaijan, Armenia, Belarus, Georgia, Moldova, Russia, and Uzbekistan are D visa-exempt.

Nationals of North Macedonia are D visa-exempt for specific purposes of stay, including employment and family reunification. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by the purpose of stay and visa classification.

Business visitors to Ukraine generally require a C visa for a short-term stay unless they are visa exempt based on their nationality. C visas usually permit single, double, or multiple entries. They are granted for six months or a duration corresponding to the intended visit but no longer than five years.

Business visitors must limit their stay to 90 days in a 180-day period. They may apply for an exceptional extension of stay for a total stay of six months calculated from the initial entry if they can show compelling reasons and evidence of sufficient funds. The allowable activities under business visitor status are limited.

The main work authorization categories are the Work/Temporary Residence Permit for when the host entity is a Ukrainian company or the Accreditation Card/Temporary Residence Permit for when the host entity is a Ukraine-based representative office of a foreign company.

Work permits can be issued between one and three years depending on the foreign national’s position, education, and salary, and can be renewed. Accreditation Cards are issued for up to three years and can also be renewed.

VAT

VAT is 20% standard rate.