Ukraine

Employment

In Ukraine employment agreements are used as type of employment contract. There are 3 types of agreements – open ended term, fixed term and project specific. There are maximum 3 months of prohibitory period allowed.

Payroll

Salaries are paid on monthly basis. Payday is usually at the end of the month.

HR & Labor

The full time employee works 40 hours per week. Overtime should not exceed 120 hours during one full year. If an employee works overtime, the employer must pay 200% of the regular wages. Employees between the ages of 16 and 18 can work maximum 36 hours per week. Minimum working age is 16 years old. Employees are given a break of no more than 2 hours after working 4 consecutive hours.

Immigration

Foreign employees must apply for a work permit with the Employment Center. The Ukrainian employer must provide necessary paperwork stating that the foreign citizen will be performing a job that a Ukrainian citizen cannot. The work permit is given for 1 year.

Minimum Wage

Minimum wage is UAH 8.29 per hour / UAH 1,378 per month.

Pension Fund

Employer contributes 33.2% of total wages.

Employee contributes 2% of total wages.

Severance Payments

Severance pay is one month salary on average.

Advance Notice

Advance notice is 2 weeks’ notice.

Termination Procedure

Employer must give 2 months’ notice to the employee.

Sick Days

The first 6 days of employees’ sick days are paid by the employer. After the Social Security Fund covers the payments.

Public Holidays

There are 10 public holidays.

Vacation Days

There are 24 paid vacation days.

Additional Employee Withholdings

1) Military Tax

1) Employer contributes 0%

1) Employee contributes 1.5%

VAT

VAT is 20% standard rate.