Payroll and HR
Administration in Ukraine

Ukraine – Payroll and HR administration services

Global Expansion Plus provides payroll and HR administration services in Ukraine. Use our solutions to take care of your people in Ukraine. We make sure that your people are being taken care of and your entity is safe from violating local legislation. Ukrainian labor relationship is governed by Labor Code.

Hiring and onboarding employees in Ukraine

If you are hiring a foreign employee, you need to consider obtaining the work permit first. Please see below. Once you agreed the job offer with your future employee you need to start the onboarding process.

Onboarding Process

Onboarding process in Ukraine consist of the following steps:
  • Prepare a signed job offer (not mandatory);
  • Collect a personal data (copy of passport, tax identification code, educational records, marriage status);
  • Preparation of a personal folder;
  • Obtaining and filling of labor book;
  • Preparation of labor contract;
  • Submitting to tax office new hired person;
  • Internal induction procedures;
The working age starts at 18.

Probation Period

While it is not mandatory, it is a common practice to include probation period into the labor agreement. Different probation periods are regulated by the labor code depending on position:
  • People on wage (unqualified) – up to 1month;
  • Professional (qualified specialist – up to 3 months;
  • Executive positions, managers – up to 6 months;

Health and Safety

The employer must ensure for the workforce such working conditions that are comfortable and safe. Requirements for work conditions are contained in many regulatory documents on labor protection. Following the requirements mitigates the risks of damage to health and safety of the people. Health and safety including fire protection are regulated by the Labor Protection Code of Ukraine.
  • employed in physically challenging work;
  • at work with working conditions with heath danger;
  • at work where there is a need for professional selection;
  • persons under the age of 21 years (regardless of profession and type of activity)

Medical Checks

Medical check up are mandatory in special industries, for example catering and taxi and other industries specified in the Labor Protection Code. A medical examination is required for the following categories of workers:

Work permits and Visas in Ukraine

Visa Types

There are three types of visas in Ukraine:
  • Type B – Visa - Transit. The transit period of visa is up to 5 days. It can be single, double and multi entries. Visa is given for 1 year and a longer period.
  • Type C – Visa - Short-term stay. The short stay visa is required if foreign citizen wants to stay in Ukraine for 180 days, but the single stay could not exceed to 90 days. It can be single, double and multi entries. The visa is issued for different period terms and cannot exceed 5-year terms.
  • Type D – Visa – Long-term stay. The long-term stay visa is required if the foreigner is going to apply for the temporary residence permit. Foreign Citizen can stay with this visa for 90 days and it is issued for 90 days respectively.
You need to receive an invitation from the Ukrainian side, depending on the purpose of the trip. Ukrainian consulates abroad accept only originals of invitations. In order to know whether your citizenships require the visa please request a consultation with our visa specialist.
To apply for a visa, foreign citizens, personally or through an authorized person (power of attorney), submit to the consulate of Ukraine, in their country:
  • Visa application form;
  • Valid international passport;
  • Two photos 30x40 mm;
  • Receipt from payment of the consular fee;
  • Medical insurance;
  • Invitation from an individual or legal entity;

Visa application process

Foreign citizent that are required to obtain entry visa shall apply to Ukraine’s Consulate within 3 month before visiting Ukraine. Sometimes visas can be acquired at international airports at the point of entry. There are two airports “Boryspil” and “Odesa” that provide this services. Ministry of Forign Affiar operated 56 Visa centers around the globe to support citizens of foreign states in obtaining visas to Ukraine. Foreign citizens also can apply for visa online. Theses kind od visas are called E-Visa and awailable to 52 countries and provide only single entry, 30 days stay visas.

Work Permit

Law of Ukraine “On employment” provides that employers are entitled to use the work of foreign citizens under the terms of an employment contract only if they have been granted a permit by the State Employment Center for the employment of foreigners.
Documents required for obtaining a work permit from a foreigner are issued by the employer who invites the foreigner to work.
In order to obtain a work permit for a foreigner, the employer must submit the following documents to the State Employment Center:
  • Application form;
  • Two color cards 3.5 x 4.5 cm in size;
  • Letter with justification for hiring of foreign citizen;
  • Receipt from payment of application fee;
  • Copy of the draft employment contract (contract);
  • Copies of the Article of Association and State Registration Certificate of the employer;
  • Copies of foreigner education records or any documents that proves qualification;
  • Copies of pages of a foreigner's international passport containing basic information for identification.

Working hours and leaves in Ukraine

Employer are responsible for providing employees with vacation time to restore their ability to effectively function, restore health and raise and educate children and fulfill personal needs.

Vacation leave

All employees are guaranteed the right for vacation by Art. 45 of the Constitution, the Labor Code, the Law on Vacation Leave, and other legal acts. Foreign citizens working in Ukraine have the right to leave on an equal basis with the citizens of Ukraine.
Types of annual leave are determined by the Vacation Leave Act. These include:
  • basic leave;
  • additional leave for work with harmful working conditions;
  • additional leave for the special nature of work;
  • other additional holidays provided by law.
According the Vacation Leave Act, annual basic leave shall be granted to employees of not less than 24 calendar days for the working year worked, which shall be counted from the date of signing of the employment contract. It is usually accrued by 2 days per month.
The annual basic vacation leave and additional vacation leaves are granted to the employee so that they are used until the end of the working year.
The annual basic vacation leave at the request of the employee can be divided into parts of any duration, considering that one of the periods cannot be shorted that 14 calendar days.

Sick leave

The temporary disability reimbursement is provided to the employee, that fully or partially compensates for the loss of wage and salary and is paid by the Social Security Fund of Ukraine starting from the sixth day of sick leave for the entire period until the sick leave is over or until disability status is granted to an employee.
Five days of sick leave due to illness or injury not related to an industrial accident are paid by the employer.
Sick leave is calculated as number of sick leave days multiplied by the average salary of an employee multiplied by the coefficient on length of work.
  • Up to 3 years - 50%;
  • From 3 up to 5 years - 60%;
  • From 5 up to 8 years - 70%;
  • From 8 years - 100%;

Maternity and paternity leave

Women are eligible with paid leave in connection with pregnancy and childbirth lasting: before delivery – 70 calendar days; after childbirth – 56 calendar days starting from the day of birth(70 calendar days – in the case of the birth of two or more children and in case of difficult of childbirth),, according the Law of Ukraine “On Vacations”. After theз pregnancy leave, mothers are able to go to the 3 years of unpaid maternity leave with position secured by the employer. Father are also eligible to the unpaid paternity leave if it is transferred from mother to father.

Ukrainian Holidays in 2020

  • 01-Jan-20 - New Year
  • 06-Jan-20 - Orthodox Christmas
  • 07-Jan-20 - Orthodox Christmas
  • 09-Mar-20 - Women's day
  • 19-Apr-20 - Orthodox Easter
  • 20-Apr-20 - Orthodox Easter
  • 01-May-20 - Labor Day
  • 08-May-20 - Day of Remembrance and Reconciliation
  • 11-May-20 - Victory Day
  • 08-Jun-20 - Orthodox Pentecost
  • 29-Jun-20 - Constitution Day
  • 24-Aug-20 - Independence Day
  • 14-Oct-20 - Day of Defenders
  • 21-Nov-20 - Dignity and Freedom Day
  • 25-Dec-20 - Catholic Christmas

Remuneration & Benefits

Minimal wage salary is set one per year and equal to UAH 4723 (USD 174,93) in gross. Net salary will be equal to UAH 3802,02 (USD 140,82) and total cost of employment will be equal to UAH 5762,06 (USD 213,41). Foreign citizens with work permit in Ukraine have minimal wage requirement of UAH 47230 (USD 1749,3), ten minimal salaries. This measure is done to protect local work force. If company has more than 8 people is needed to hire one person with disability. This is mandatory requirement.

Employee termination and severance

Ukrainian labor legislation is protecting employees from the unfair terminations.
  • Mutual agreement of the parties;
  • Term contract is expired;
  • Employee is required to serve in Military;
  • Resign of an employee;
Severance payment of 2 months’ salary is paid in case of company or the positions liquidation. Also it is commonly accepted that the severance payment in case of firing an employee is equal to 2 months’ salary.

Payroll related taxes

Employee taxes

Employees are paying Personal Income Tax of 18% and Military tax of 1,5% from its gross salary.

Employer taxes

Employers are paying 22% of Social Security Contribution on top of Gross salary.
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