Ukraine is the largest country entirely within Europe, covering an area of about 603,500 square kilometers.
Payroll and Benefits Guide - Ukraine
Fun Facts
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.
Contributions
Employee Payroll Tax
| Contribution Type | Rate |
| Social Security | 0.60% |
Employer Payroll Tax
| Contribution Type | Rate |
| Unified Social Contributions | 22.00% |
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.
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.