How to hire and pay EMPLOYEES IN

Ukraine

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Before hiring

EMPLOYEES IN
Ukraine

Before hiring employees in Ukraine, there are some key things you’ll need to know. Firstly, in Ukraine, fixed term contracts avoid the need for negotiated notice periods and severance payments. As an employer, it’s important to bear this in mind. It’s also valuable to know that non-compete agreements are unenforceable, and termination of an employment agreement at the employer's initiative is difficult to do. In Ukraine, an employee cannot be dismissed without cause. 

If you’re hiring employees in Ukraine, make sure you’re aware that a maximum of four hours of overtime is allowed during two consecutive days at a time. Employees aren’t permitted to work more than 120 hours overtime per year.

In Ukraine, overtime on weekdays and public holidays is paid at 200% of an employee’s regular hourly wage. Unlike some countries, this cannot be compensated by providing an additional day of rest. Working on days of rest is paid at 200% of regular hourly wage or by providing another day of rest instead.

We know keeping track of all this might sound overwhelming—but it doesn’t have to be. A solution like Oyster eliminates the barriers for you. With Oyster, you can automate compliance across 180+ countries, easily managing HR and payroll—all in one, easy-to-use platform. 

Get an overview of what you need to know when hiring in Ukraine below.

At a Glance

CURRENCY

UAH

OFFICIAL LANGUAGE

UKRAINIAN

PAYROLL FREQUENCY

TWICE MONTHLY

PUBLIC HOLIDAYS

15

(based on region;
see here
)

EMPLOYER TAXES

22%

of gross salary

13th / 14th SALARY

N/A

Good to know

  • In Ukraine, termination of an employment agreement at the employer's initiative is difficult and an employee cannot be dismissed without cause. Ukraine strictly prohibits dismissal of pregnant women, women who have children under three years of age, and single mothers who have children under 14.
  • Non-compete agreements are unenforceable in Ukraine.
  • In Ukraine, fixed term contracts avoid the need for negotiated notice periods and severance payments.

Employment in

Ukraine

Working hours and overtime

A work week in Ukraine is 40 hours per week and typically eight hours per day. Employees are entitled to two days off every week.

In Ukraine, a maximum of four hours of overtime is permitted during two consecutive days at a time. An employee can’t work more than 120 hours overtime per year.

Overtime on weekdays and public holidays is paid at 200% of an employee’s regular hourly wage, and this cannot be compensated by providing an additional day of rest.

If an employee works on their day of rest, they are paid 200% of their regular hourly wage, or that employee must be given another day of rest instead.

Employment contracts
Probationary period

The maximum probation period is one month for non-qualified employees. For specialists and managers, the probation period is three months. 

Pensions
Notice period

Notice periods in Ukraine can vary depending on the reason for termination. However, no notice period applies if the employer and employee consensually agree on termination.

In Ukraine, notice for dismissal is generally two months. For resignations, it is generally two weeks.

IP protection and non-compete agreements

Non-compete agreements are not legally enforceable in Ukraine.

Employment cost calculator

Holidays

01 Jan

New Year's Day

10 May

Victory Day Holiday

07 Jan

Orthodox Christmas Day

20 Jun

Orthodox Whit Sunday

08 Mar

Women's Day

21 Jun

Orthodox Whit Monday

01 May

Labor Day

28 Jun

Constitution Day

02 May

Orthodox Easter Sunday

24 Aug

Independence Day

03 May

Orthodox Easter Monday

14 Oct

Defender's Day

03 May

Labor Day Holiday

25 Dec

Catholic Christmas Day

09 May

Victory Day

01 Jan

New Year's Day

07 Jan

Orthodox Christmas Day

08 Mar

Women's Day

01 May

Labor Day

02 May

Orthodox Easter Sunday

03 May

Orthodox Easter Monday

03 May

Labor Day Holiday

09 May

Victory Day

10 May

Victory Day Holiday

20 Jun

Orthodox Whit Sunday

21 Jun

Orthodox Whit Monday

28 Jun

Constitution Day

24 Aug

Independence Day

14 Oct

Defender's Day

Employer tax

In Ukraine, an employer’s total social contributions are 22% of an employee’s salary.

Individual tax

Employees in Ukraine are taxed 18% regardless of their income bracket. In addition, employees’ income is also subject to a military tax of 1.5%.

Termination of employment

The amount of severance pay employees in Ukraine are entitled to depends on the reason for termination and the employee’s seniority. If an employee terminates their contract for violation of agreement or law, they are entitled to a severance pay of three average salaries.

In most other cases, severance pay is one month's salary in addition to the notice period pay (if provided in lieu of actual notice period), compensation for unused vacation pay, and other benefits.

Corporate officers are entitled to a severance pay of six months of average salary.

Start hiring employees in

Ukraine

Setting up a business entity everywhere you want to hire a new employee isn’t scalable—it takes too long and the legal fees are high. At the same time, understanding and adhering to the local labor laws and employee expectations can be complex and time consuming. And it’s hard to find reliable information on up-to-date employment information for all the countries where you’re considering hiring. Not to mention tracking down invoices and managing employee contracts over email and spreadsheets—that gets messy fast. 


We can’t afford to take risks when it comes to compliance—we need to make sure we follow the local guidelines, especially when it comes to taxes and legalities. 


With Oyster, you can manage HR and payroll, and automate compliance across 180+ countries—all in one, easy-to-use platform.

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