Payroll Information

Payroll Cycle

The standard payroll cycle in Ukraine is monthly, with employees typically being paid on a monthly basis. Employers are required to withhold income tax, social security contributions, and other mandatory deductions from employees' paychecks.

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Employment Law

Ukrainian employment law is regulated by the Labor Code of Ukraine. This legislation sets out the rights and obligations of employers and employees and covers matters such as minimum wage, working hours, overtime, vacation, sick leave, and termination of employment. Employers are required to comply with a range of legal obligations, such as paying minimum wage, providing a safe working environment, and ensuring that employees have the right to join a trade union.

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Employment Contract

The employment contract in Ukraine must be concluded in writing and signed by both the employer and the employee. The contract should specify the terms and conditions of employment, such as the job description, salary, working hours, and duration of employment. The contract must also specify the notice period that the employer or employee must give if they want to terminate the contract. The minimum notice period for termination of employment is 2 weeks, but this may be longer depending on the duration of the employee's service.

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Probation Period / Trial Period

The probation period in Ukraine cannot exceed 3 months for most employees. During this time, the employer can terminate the employment contract without notice and without providing a reason.

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Working Hours

The standard working week in Ukraine is 40 hours, usually spread over five days. Overtime is permissible, but it should not exceed 120 hours per year for each employee. Overtime pay should be at least 150% of the employee's regular hourly rate.

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Overtime

Overtime is permissible, but it should not exceed 120 hours per year for each employee. Overtime pay should be at least 150% of the employee's regular hourly rate.

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Bonus

Bonuses may be paid to employees in Ukraine, but they are not mandatory unless they are specified in the employment contract. Bonuses are subject to income tax and other mandatory contributions.

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Termination

Either the employer or employee can terminate an employment contract in Ukraine. The employer must have a valid reason for termination, such as poor performance or a breach of contract. The employee can terminate the contract by giving written notice to the employer. The notice period depends on the length of service, but it should not be less than 2 weeks.

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Notice Period

The notice period in Ukraine depends on the length of service, but it should not be less than two weeks. The notice period should be specified in the employment contract.

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Redundancy / Severance Pay

Employers may have to make employees redundant if there is a reduction in the workforce, closure of the business or technological changes. Employers must comply with strict procedures and legal requirements when making employees redundant, such as providing advance notice and severance pay.

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Maternity Leave

Female employees in Ukraine are entitled to 126 days of maternity leave. This leave can start no earlier than 70 days before the expected due date and no later than the day of birth. During maternity leave, employees are entitled to receive their full salary.

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Paternity Leave

Male employees in Ukraine are entitled to three calendar days of paternity leave. This leave must be taken within 14 calendar days from the date of the child's birth.

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Parental Leave

Employees in Ukraine are entitled to parental leave until their child reaches the age of 3. During this time, the employee may take unpaid leave, and their job is protected.

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Vacation and Annual Leave (paid time off)

Employees in Ukraine are entitled to at least 18 days of paid annual leave. The exact amount of annual leave may vary depending on the length of service and the collective agreement.

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Sick Leave

Employees in Ukraine are entitled to paid sick leave if they are unable to work due to illness or injury. The duration of sick leave depends on the length of service, but it is usually no more than 14 calendar days per year.

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Other Leave

In Ukraine, employees may also be entitled to other types of leave, such as study leave, marriage leave, or bereavement leave. The conditions and duration of these leaves may vary depending on the employer and the circumstances.

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Other Benefits

Employers in Ukraine may also offer other benefits to employees, such as health insurance, retirement plans, and transportation allowances. These benefits are not mandatory but can be used as incentives to attract and retain employees.

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Holiday

There are 12 public holidays in Ukraine, including New Year's Day, Orthodox Christmas, and Independence Day. Employees are entitled to take the day off on public holidays and receive their regular salary for that day.

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Taxation

Personal Income Tax

Personal income tax in Ukraine is calculated at a flat rate of 18% on all types of income, including employment income, business income, and investment income. However, if the annual income exceeds a certain threshold, an additional 1.5% military tax is also applied. The personal income tax is paid by the employee, and it is withheld from the gross salary by the employer.

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Social Security

Social security contributions in Ukraine are paid by both the employee and the employer. The total rate of social security contributions is 22% of the employee's gross salary, with 2% paid by the employee and 20% paid by the employer. Social security contributions are calculated on top of the employee's salary and are used to fund various social security benefits, including pensions, disability benefits, and healthcare.

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Visas and Foreign Workers

General Information

Foreign nationals who wish to work in Ukraine must obtain a work permit and a temporary residence permit. The work permit is issued by the State Employment Service of Ukraine, and the temporary residence permit is issued by the State Migration Service of Ukraine.

To obtain a work permit, the employer in Ukraine must first apply to the State Employment Service to demonstrate that there is no suitable candidate for the position from among Ukrainian citizens or other foreign nationals already in Ukraine. If the application is approved, the employer can then apply for the work permit on behalf of the foreign national.

Once the work permit is obtained, the foreign national can apply for a temporary residence permit, which is valid for the duration of the work permit. The application must be submitted to the State Migration Service of Ukraine, and it should include various documents, such as a copy of the work permit, a medical certificate, and proof of financial support.

In addition to the work permit and temporary residence permit, foreign nationals may also need to obtain a visa to enter Ukraine. The type of visa required depends on the duration and purpose of the stay, and it may be a short-term or long-term visa.

It is important to note that the process for obtaining a work visa in Ukraine can be complex and time-consuming, and it is advisable to consult with an immigration lawyer or other qualified professional to ensure compliance with all relevant laws and regulations.

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