Ukraine

At a glance

Capital

Kyiv
Currency

Ukrainian hryvnia (₴, UAH)
Official Languages

Ukrainian (official and national language)
Population Size

36,744,636 (2023)
Ease of doing business

Easy
VAT

0.2

About

Ukraine gained independence in 1991 after the fall of the Soviet Union. It has extensive fertile agricultural land and is the world’s biggest grain exporter. The north of the country is a centre of industry, preparing machinery, coal, metals and chemicals for export. The national currency is the Hryvnya. The ongoing Russian invasion has led to significant disruption and conflict in the country. Mauve has its own entity in Ukraine and is ready to assist with your requirements through our extensive range of in-country services.

Public Holidays

Salary & Compensation

Working Hours

Employees can work up to 40 hours per week.

Minimum Wage

UAH 6,700 per month.

Employee Tax

Tax rate	18%
Military/defence levy	1.5%
Social security contribution	0.6%

Bonuses

There are no statutory bonus schemes in Ukraine, but discretionary bonus schemes are common.

Contracts

Ukrainian law distinguishes between an employment agreement (which is used to formalise employment relations) and an employment contract (a more flexible employment agreement that can be used only in specific situations). Each document type has different requirements.

Employment agreements must be formalised, but there is no legal instruction that states they must be written.

Employment contracts, however, must be written in Ukrainian. They should include:

Contract length
The rights of each party
Grounds for contract termination.

Types of Leave

Annual Leave

Minimum of 24 days' paid holiday per year after six months of service.

Sick Leave

Sick leave compensation is covered by the Ukrainian State Social Security Fund.

Employees must submit a medical certificate on their return to work after sick leave.

Parental Leave

Maternity leave: at least 126 days' fully paid leave.
Paternity leave: none.

Termination

Termination Process

Employers in Ukraine can terminate a contract provided they give notice in line with legal requirements.

Grounds for termination include:

Mutual consent
Contract expiry
Employee entry into military service
Refusal to relocate
Agreement under the contract terms
Misconduct

Employees can also terminate the contract by giving a signed letter of resignation, written in Ukrainian.

Severance Pay

Employees are entitled to 1-3 months' severance pay, depending on their length of service.

Insurances

Under a Mauve Group Employer of Record solution, clients and workers can reap the benefits of Mauve’s Global Master Insurance Programme – a market-leading unified corporate insurance programme that connects all Mauve entities to its two preferred providers.

The insurance provides coverage in overseas locations through a combination of the master policy and its linked local policies, where required by law in certain jurisdictions. The policies include:

Employer’s Liability and Public Liability - £10,000,000 combined limit.
Professional Indemnity - £5,000,000 limit.
Worker’s Compensation – Limit is dependent on location of work.

For specific information about statutory and recommended insurances in your chosen country, get in touch with Mauve.

Additionally, Mauve Group’s coverage includes general commercial insurance for Ukraine, in what it believes is an industry gold standard. Due to the invasion of Ukraine, most global insurers will no longer provide insurance in the region – through the Global Master Insurance Programme, Mauve Group is able to offer general commercial insurances to bolster its ongoing support of clients and Employer of Record workers in Ukraine.

Our Services

SERVICES ARE BEING ASSESSED ON A CASE-BY-CASE BASIS DUE TO CURRENT CIRCUMSTANCES