Official employment in Ukraine

 

Work and Translation in UA offers services of an official employer in Ukraine for clients who wish to hire employees and pay salaries without establishing a branch or subsidiary in the country. The candidate is hired through Work and Translation in UA's representative office in accordance with Ukrainian labour law and can be hired within a few days, not months as is usually the case. Our solution enables clients to run payroll in Ukraine while outsourcing HR, tax and compliance. As a global PEO (Professional Employer) expert, we manage best practice employment contracts, statutory and market benefits, labour costs and severance and termination packages if required. We also keep you up to date with changes to local labour laws in Ukraine. Your new employee will be up and running faster, receive a better induction and contribute 100% to your team. With Work and Translation in UA, you can quickly and easily tap into the talents of the best employees from more than 185 countries.

Ukraine is the largest country in Eastern Europe (603,700 km²), borders Belarus, Poland, Hungary, Slovakia, Romania and Moldova, has 43.79 million inhabitants and is already an EU candidate. Business meetings in Ukraine should be planned well in advance and it is very helpful if you can find a mutual acquaintance to arrange a meeting. At this first meeting, you should introduce yourself and explain who you are, what the purpose of the meeting is and other details. Since Ukrainian companies are very bureaucratic, you will need to be patient during negotiations and give in on some points to finalise a deal. Indirect communication is an important aspect of Ukrainian culture; pay attention to body language when speaking. When negotiating the terms of an employment contract and offer with a Ukrainian employee, keep in mind the following standard benefits in Ukraine:

 

 

Employment in Ukraine

 

Labor wages are generally structured according to the collective bargaining system and are regulated by collective agreements, compensation agreements and employment contracts.

 

Employment contracts in Ukraine

 

As a rule, employment contracts in Ukraine are concluded for an indefinite period of time, but they can also be concluded:

 

- for a fixed term not exceeding 5 years

- for a certain period of time for the implementation of a specific project

- for the duration of seasonal work

- for a fixed term to replace an absent employee whose position remains vacant.

 

Working hours in Ukraine

 

Standard working hours in Ukraine are 40 hours per week, 8 hours per day.

- Overtime is permitted only with the employee's consent and with appropriate overtime pay or additional days off.

- Overtime is limited to 180 hours per year, provided it does not exceed 10 hours per week and is paid at 100% above the regular rate.

- The duration of a working day, including overtime, may not exceed 12 hours.

 

Holidays in Ukraine

 

In Ukraine there are 11 holidays when workers have a day off:

- New Year

- Orthodox Christmas

- Women's Day

- Labor Day

- Day of Remembrance of the Victims of Nazism 1939-1945

- Constitution Day

- Day of the Baptism of Kievan Rus - Ukraine

  Day of Ukrainian statehood  

- Independence Day

- Day of the Defender of Ukraine 

- Catholic Christmas

 

Vacation in Ukraine

 

Employees are entitled to a vacation of at least 24 days per year in Ukraine.

 

 

Sick leave in Ukraine

 

Insurance benefits and payment for the first five days of temporary incapacity for work are borne by the employer. From the 6th working day onwards, payments are made to the Pension Fund of Ukraine. Payments are made on the basis of a certificate of sick leave issued in accordance with the established procedure. This certificate is issued in the register on the basis of a medical report after the patient is registered as an insured person in the register of insured persons of the State Register of Compulsory State Social Insurance.

If the insured person works part-time, the average earnings are calculated separately for the main job and the part-time job. In this case, the calculation period is determined separately for each job.

 

Parental leave in Ukraine

 

Temporary incapacity benefits (including childcare) and maternity benefits are provided to insured persons (including those engaged in entrepreneurial or other activities and simultaneously working under an employment contract) at their main place of work (activity) and at a part-time place of work (employment) in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

Maternity benefit is calculated on the basis of the accumulated salary (income) from which insurance contributions are paid, but not more than the amount of the benefit, which is twice the minimum wage established at the time of the insured event.

 

Medical care in Ukraine

 

Citizens of Ukraine are entitled to government health care, but most employers offer supplemental health insurance.

 

 

Secret of successful migration to Ukraine

 

Privileges for foreign IT specialists and other categories of foreigners are regulated by the Law on Employment of the Ukrainian Population. Foreign IT specialists can obtain a work permit for up to 3 years and then a temporary residence permit. 
In addition, other special categories of foreigners also have privileges, including:
- highly paid professionals;
- Founders, partners or beneficiaries (controllers) of legal entities established in Ukraine;
- Graduates of universities ranked in the top 100 in the world;
- employees in creative professions.
These foreigners can obtain a work permit for any position in their company or pay themselves the minimum wage. To obtain a work permit, you must submit documents such as an application, a notarised translation of the foreigner's passport, a photo and a copy of the draft employment contract. The application will be processed within 7 working days.
These privileges allow foreign specialists to easily settle in the Ukrainian IT sector and obtain a work and residence permit. This step is beneficial both for companies, which can recruit talented professionals from abroad, and for the IT community itself, which gains access to new knowledge and experience.

 

Termination of employment/dismissal in Ukraine

 

The probationary period may be specified in the employment contract and its maximum duration may not exceed 3 months. The employment agreement may be terminated under the following conditions:

1. By mutual agreement of the parties.
2. Expiration of the term of the employment agreement (if it is a fixed-term agreement).
3. At the initiative of the employee or the employer.
4. If the employee agrees to be transferred to another employer or to take up an elected position.
5. If the employee does not agree to move to another location at the request of the employer or to new working conditions.
6. Upon completion of the probationary period.
7. Due to force majeure and other reasons.

If the employment agreement does not provide for a notice period for its termination, a notice period of approximately 2 months shall apply. If the employee initiates the termination of the contract, he or she must give the employer at least 1 month's notice.

 

Taxes in Ukraine 

 

The State Tax Inspectorate announces tax rates and revenues for 2024:

 

Minimum wage - 6700 UAH.

Subsistence minimum - 2684 UAH.

The unified social contribution (minimum insurance period) - 1474 UAH.

 

 

Tax rates for taxpayers of the simplified tax system:

 

- for group I - 268,40 UAH (up to 10% of the minimum wage)

- for group II - 1340,00 UAH (up to 20% of the minimum wage)

- Group III - not used or unlimited.

 

Minimum payment of taxes for an employee:

 

- Salary - 6,700 UAH.

- Unified social contribution of 22% of the minimum wage - 1474 UAH.

- Personal income tax of 18% - 1206 UAH.

- Military tax of 1.5% - UAH 100.50.

 

Income limits for 2024 for single taxpayers:

 

Individual entrepreneurs of group I - 1,118,900 UAH.

Individual entrepreneurs of group II - 5,587,800 UAH.

Individual entrepreneurs of group III - 3% of income + VAT, 5% of income - 7,818,900 UAH.

Individual entrepreneurs of group III - 2% of income without restrictions.

 

Why Work and Translation in UA

 

Establishing a branch or subsidiary in Ukraine to employ a small team is time-consuming, costly and complex. Ukrainian labor law provides strict protection for employees, which requires attention to detail and an understanding of local best practices. Work and Translation in UA can help you expand your business in Ukraine effortlessly and easily. We can help you hire the right candidate, address HR and salary issues, and ensure compliance with local laws without the need to establish a foreign branch or subsidiary. Our Ukraine PEO and Employer of Record solution provides you peace of mind so that you can focus on running your company.

If you would like to discuss how Work and Translation in UA can provide a seamless staff leasing or PEO solution for your staffing needs in Ukraine, simply contact us.

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