Employment Law

Employment Contracts in Ukraine

This is not a strict legal requirement, but we always recommend that you provide your employees in Ukraine with a formal employment contract that contains all the necessary details of the employment agreement, such as wages/salaries, maternity benefits, sick leave, estimated working hours, etc. It should also be written in Ukrainian and use the Ukrainian hryvnia currency.

Fixed Term

Indefinite

Working Hours in Ukraine

Normal working hours in Ukraine are 40 hours per week and 8 hours per day. Working time beyond this time shall be compensated at 200% of normal wages. Workers shall not work more than 2 hours of overtime per day and shall not exceed 120 hours of overtime per year .

Holiday Policy

Ukraine Vacation

Ukrainian workers are legally entitled to at least 24 days of paid leave per year. For certain employees, such as those over 55 years of age or disabled workers, the allowance is increased by three days. In addition, all workers can take up to seven days of leave for special circumstances (such as a death in the family).

Ukrainian Sick Leave

Employees in Ukraine are legally entitled to sick leave and receive compensation based on years of service. Workers with less than five years of service receive 60% of their wages, workers with five to eight years of service receive 80% of their wages, and workers with more than eight years of service receive 100% of their wages.

Parental Leave in Ukraine

Women can enjoy 70 days of paid maternity leave before giving birth. They are generally entitled to an additional 56 days of leave after childbirth and additional paid leave during the first three years of the child's life. Fathers are not legally entitled to any paternity leave, but some employers may choose to offer it.

Dismissal and Severance in Ukraine

Employers in Ukraine can fire employees under certain circumstances, such as by mutual consent, but dismissal can be very difficult without "just cause." In these situations, we strongly recommend seeking the help of a legal professional to streamline the process and potentially avoid a huge expense.

Typically, employees receive severance equal to one month's salary or more.

Taxes in Ukraine

The law requires employers to contribute 34.7% of wages as a unified social tax, covering various social schemes.

The income tax rate in Ukraine is 18%.

The corporate tax rate in Ukraine is 18%.

Health Insurance in Ukraine

There is public healthcare in Ukraine, but the standard may be lower than in more developed countries. Therefore, many employers choose to provide private health insurance to their employees.

Salary and Benefits

Compensation Law of Ukraine

As of September 2020, the minimum wage in Ukraine is UAH 5,000 per month.

Welfare Administration in Ukraine

As a Ukrainian employer, managing your benefits package may include setting up private health insurance, supplementary parental leave payments, company cars, etc.

As a foreign company, setting up and running a benefits system for Ukrainian employees can be difficult, and you will need to familiarize yourself with the country's procedures and relevant regulations. The process can take a long time to set up, so if you're unsure we recommend seeking professional advice.

Remoly can simplify your Ukrainian benefits administration, our Ukrainian experts will set up and manage everything for you and help you focus on successfully expanding your business.