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Payroll and Benefits Guide Ukraine

Last updated: May 17, 2023

Currency
Ukrainian Hryvnia (UAH)
Employer Taxes
Unknown
Payroll Frequency
Bi-Monthly
Employee Costs
0.6%
Capital
Kyiv
Date Format
dd/mm/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
22.00%
Unified Social Contributions (maximum monthly contribution 120,000UAH)
22.00% Total Employment Cost
Employee Employee Payroll Contributions
0
Social Security
0
Total Employee Cost
Employee Income Tax
18%
Flat rate
1.50% Military/Defense Levy
19.50% Combined Flat rate

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The minimum wage is 7,100 UAH per month.

The minimum wage will increase to UAH 8,000 as of  April 1st 2024.

MINIMUM WAGE (PER MONTH)

Highest
Lowest

Payroll

Payroll Cycle

The payroll cycle in Ukraine is bi-weekly and runs twice a month between the 15th and 20th of each month and the 31st and 7th of the following month.

13th Salary

There are no provisions in the law regarding 13th salaries.

Authority Payment

Paid To

Due Date

Method

Income tax

Treasury of Ukraine

7th / 22nd

wire

Social security tax

Treasury of Ukraine

7th / 22nd

wire

VAT

Treasury of Ukraine

30th of the next month

wire

Working Hours

General

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. All overtime hours in excess of 40 hours per week are paid at an overtime compensation rate of 200% of an employee’s regular hourly rate. The overtime work performed on a rest day can be compensated by another rest day in lieu of payment.

Employees who are pregnant or have children under the age of 3, employees under 18, and employees studying at school or college are forbidden from working overtime.

Employers must receive consent from women who have children between the ages of 3 and 14 and people with disabilities to work overtime.

Overtime may be mandatory in the case of production disruptions due to accidents or to avoid production downtime.

 

Leave

Annual Leave (vacation)

Employees are entitled to a minimum of 24 calendar 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.

Date Day Holiday Notes
1 Jan 2024 Monday New Year`s Day
8 Mar 2024 Friday International Women’s Day
1 May 2024 Wednesday Labor Day
6 May 2024 Monday Velykden (Easter) Holiday
8 May 2024 Wednesday Victory Day
23 Jun 2024 Sunday Trinity Day
24 Jun 2024 Monday Trinity Day Holiday Day Off in Lieu
28 Jun 2024 Friday Constitution Day of Ukraine
15 Jul 2024 Monday Day of Ukrainian Statehood
24 Aug 2024 Saturday Independence Day of Ukraine
26 Aug 2024 Monday Independence Day of Ukraine Holiday Day Off in Lieu
1 Oct 2024 Tue Day of Defenders
25 Dec 2024 Wed Christmas Day

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.

The amount the Social Insurance Fund compensates an employee is dependent on the seniority of the employee:

  • Fewer than six months of employment: payment based on minimum wage
  • 0-3 years of employment: 50% of the employee’s average salary
  • 3-5 years of employment: 60% of the employee’s average salary
  • 5-8 years of employment: 70% of the employee’s average salary
  • 8+ years of employment: 100% of the employee’s average salary

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. For multiple births or complicated confinement, 140 days maternity is given.

Social Insurance Fund compensates maternity leave at 100% of an employee’s average salary capped by a maximum base salary for Social Single Fee.

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 years old.

Other Leave

Depending on the collective agreement or the terms of the employment contract, an employee may be allowed additional leave types upon approval between the employer and employee:

  • Bereavement: An employee is entitled to bereavement leave of up to 7 days for the death of an immediate family member.
  • Marriage: An employee is entitled to 10 days of leave in the event of their wedding.
  • Study: Employees are entitled to paid study leave which is compensated by the employer. The length of the leave is dependent on the duration of the exam period.
Vacation Days
Public Holidays
Highest
Lowest

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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 and must be given in writing:

  • 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

The severance payment is one month’s salary for every two years of employment.

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.

Common Benefits

Taxable Benefits:

  • Bonus
  • Medical insurance – for employees and their families
  • Life insurance
  • Meal allowance
  • Car allowance
  • Mobile phone expenses

VISA

VISA

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.

Remote Work

Ukrainian law distinguishes between Home-based work and Remote work. Homebased work is defined as the work that is done from home or a designated location agreed upon between the employer and the employee. Such work arrangement is more structured as employer can inspect the employee’s remote workspace and employee is required to follow regular work hours (unless agreed otherwise). In addition, employment agreements should be established in writing and location may not be changed unless approved by the employer.
Remote work is a more flexible option that allows employees to work from any location of the employee’s choosing and according to their own schedule. Remote work arrangements should be established in writing unless emergency circumstances preventing it (such as a pandemic).
The employer is required to provide remote and home-based work employees with the necessary tools and equipment to perform the job and reimburse related expenses to the employee
Additionally, flexible working hours may be available at the request of the employee. Also at the initiative of the employer when there is a substantial change in working conditions (with two months’ notice) or when there is a threat of epidemic or any emergency (no prior notice is needed).

VAT

General

VAT is 20% standard rate.

Stay up to date on payroll & employment law changes

Version History

January 16, 2024
The maximum amount of Single Social Contribution has arisen to UAH 23,430
January 16, 2024
The minimum wage has increased to 7,100 UAH per month.
June 2, 2022
Payroll contributions and personal income tax rates have been updated.
December 7, 2021
Minimum wage was increased from 6,000 UAH per month to 6,500 UAH per month.
January 1, 2021
Minimum wage was increased from 5,000 UAH per month to 6,000 UAH per month.
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Questions & Answers

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Fergusono Zeno
Fergusono Zeno
2 years ago

Hi, Is the minimum wage still 6000 UAH per month?

Emily Kuhnert
Emily Kuhnert
2 years ago
Reply to  Fergusono Zeno

Yes, the monthly minimum wage is 6,000 UAH. This minimum wage has been in effect since January 1, 2021.

Kyle Ramkissoon
Kyle Ramkissoon
2 years ago

Hi, is there a leave of absence policy or documentation for Ukraine?

Alex Margolin
Editor
Alex Margolin
2 years ago

Employees can take unpaid leave for a number of reasons, such as marriage (10 days) or bereavement (7 days for close family member). They can also request a period of unpaid leave for an unspecified reason, which is up to 15 days and must be agreed to by the employer.

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Payroll and Benefits Guide in Ukraine

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Payroll and Benefits Guide
in Ukraine

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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All questions are answered by our in-house compliance department working in conjunction with our local in-country partner for this specific country

Public Holidays Calendar

Ukraine
Download:
CSV
PDF
ICS
Date Day Holiday Notes
1 Jan 2024 Monday New Year`s Day
8 Mar 2024 Friday International Women’s Day
1 May 2024 Wednesday Labor Day
6 May 2024 Monday Velykden (Easter) Holiday
8 May 2024 Wednesday Victory Day
23 Jun 2024 Sunday Trinity Day
24 Jun 2024 Monday Trinity Day Holiday Day Off in Lieu
28 Jun 2024 Friday Constitution Day of Ukraine
15 Jul 2024 Monday Day of Ukrainian Statehood
24 Aug 2024 Saturday Independence Day of Ukraine
26 Aug 2024 Monday Independence Day of Ukraine Holiday Day Off in Lieu
1 Oct 2024 Tue Day of Defenders
25 Dec 2024 Wed Christmas Day