COUNTRY GUIDE
A short guide to building a dedicated offshore team in Ukraine
Get startedKyiv
Ukrainian
31.2 million
GMT+3
240,000+
Ukrainian Hryvnia (UAH)
$7B+
$1B+ (2022)
Kyiv
Ukrainian
31.2 million
GMT+3
240,000+
Ukrainian Hryvnia (UAH)
$7B+
$1B+ (2022)
In Eastern Europe, Ukraine is a key emerging player in the global IT sector. With a deep-rooted tradition in math and engineering, it churns out 30,000 IT grads yearly, propelling its tech rise.
Kyiv, the capital, is Ukraine's tech hub, teeming with innovation, events, and R&D hubs. It's home to experts in AI, blockchain, and game dev.
Valued at $5 billion, Ukraine's IT has grown steadily, backed by rising tech firms. Ranking among the top 20 IT exporters, it showcases tech expertise.
With 200,000+ tech professionals and strong English skills, it's one of Europe's tech giants. Its strategic location, cost advantage, and dedication to innovation make it prime for businesses seeking software prowess.
Payroll Cycle
In Ukraine, the payroll cycle is typically monthly and payment is made 1 time per month according to the country law.
Employer Taxes
In Ukraine, employers serve as withholding agents, deducting income tax from employee wages. They are responsible for routinely reporting these withheld amounts to local authorities and also bear the responsibility of making social security payments on behalf of their employees. The standard tax rate for employment income is 18%, and there's an added 1.5% military tax imposed on all earnings.
Overtime Pay
Overtime work beyond the standard weekly hours is subject to regulations specified in employment contracts or collective agreements. Employees may be asked to work overtime or on holidays, but there's a limit of 4 hours over two consecutive days and a maximum of 120 hours annually.
Any overtime that exceeds 40 hours weekly is compensated at a rate of 200% of the employee's regular hourly wage. If overtime occurs on a rest day, an alternative rest day may be offered instead of payment.
It's prohibited for pregnant employees, those with children under 3 years, employees below 18, and those attending school or college to work overtime. For women with children aged 3 to 14 and people with disabilities, employers must obtain consent before assigning overtime.
In specific situations, like accidents causing production disruptions or to prevent production standstills, overtime might be obligatory.
Paid Leave
After six months of continuous work, employees have the right to at least 24 days of paid annual leave. This entitlement can be higher for minors and those in challenging or hazardous roles. Any unused leave days can be carried forward for future use.
Sick Leave
Employees have the right to four months of paid sick leave. While the employer covers the payment for the initial five days, the Social Insurance Fund compensates for the remaining duration.
Public and Provincial Holidays
There are 12 public holidays in Ukraine. Public holidays falling on weekends are moved to another day instead.
Notice Period
The required notice period varies based on who begins the termination process:
13th Month Bonus
While Ukraine doesn't mandate a 13th-month salary, many employers choose to offer it. This additional payment is seen as a gratuity, with employers often giving it or other performance-related bonuses.
Launching a distinct business operation in Ukraine with the aim of team formation can be an intensive task, often accompanied by substantial legal expenditures.
Concurrently, mastering Ukrainian labor laws and aligning with employee expectations represent intricate and formidable challenges. These issues are magnified by the imperative to secure accurate and contemporary employment data specific to Ukraine. Furthermore, the task of administrating contracts and overseeing invoices through emails and spreadsheets is prone to becoming chaotic and mistake-ridden.
In this context, ensuring compliance is paramount, with a critical need to conform to Ukrainian regulations, especially in matters pertaining to taxes and legalities.
ALLSTARSIT streamlines this entire process by delivering a holistic solution for the discovery and recruitment of employees in Ukraine, overseeing HR and payroll operations, and facilitating automated compliance. We transform the process into a straightforward and smooth experience, devoid of complexities.
Choose the right expert professionals required for your specific project, saving time and wasted effort.
This service enables software development companies worldwide to meet any technical needs outside their core skill set by adding specialized staff on demand while retaining control of the project's specifications and scope.
Establish R&D / Tech Support / QA & Testing / DevOps / Data Entry Centers in your chosen location.
Forget about investing in facilities, equipment, technology, or human resources. We manage all necessary operations as your specialist. This can help you save money and resources, all while reducing frustration and simplifying internal processes.
Use ALLSTARSIT as your EOR / CM to easily hire employees in new countries without setting up a legal entity.
We act as the employer for your new hire, handling all HR, payroll, tax, and compliance requirements on your behalf, while you maintain control of their workload.
Effortlessly Access Expert Tech Support for Your Projects
Our Tech Support service provides companies worldwide with access to the best technical experts tailored to their specific project needs. Whether you require troubleshooting, maintenance, or specialized assistance, we ensure that you have the right professionals on hand to support your endeavors effectively.
Maximize Your Customer Satisfaction Level with Our Customer Support Service
Access tailored customer care solutions for your business needs. Our expert team is dedicated to addressing inquiries, resolving issues, and delivering personalized assistance. Say goodbye to challenges and hello to exceptional customer care with us.
Contact us, and we’ll help you hire the best tech talent in Ukraine