Employer of Record and Payroll Services in Ukraine
|Cserve owned legal entity
- Employer of record
- Contractor management
- Global payroll
- In-country payroll
Cserve offers complete payroll, PEO and HR services in Ukraine
A developed market economy, Ukraine has been undergoing a steady pace of reform which coupled with the availability of good talent and high quality undervalued assets makes the country an excellent investment destination. However, with the Russian ongoing invasion into Ukraine having unfolded in recent days, the escalating conflict will impact growth, the economy and its people (as well as the world economy) in time to come.
Doing Business in UkraineUkraine currently has 20 free trade agreements with 47 countries. In 2020, Ukraine had climbed five more places in the World Bank’s Ease of Doing Business ratings, to 64 out of 190 countries. The World Bank rates Ukraine second among all countries in the last 10 years regarding speed and depth of improvement in its business climate. Download PDF
Setting up a new business or expanding an existing one in Ukraine is straightforward. Choose how your company operates from a range of entity types which suit your individual circumstance.
Banking Hours: Monday – Thursday from 9:00 am – 3:00 pm
The standard working week is from Monday to Friday from 9:00 am – 5:00 pm
Since 2014, Ukraine has embarked on an ambitious deregulation program aimed at achieving regulatory compliance with European Union standards and global best practices as well as easing doing business. Since 2022, IT companies in Ukraine will also receive access to more flexible regulation of labor relations, better protection of IP (intellectual property) rights, access to the legal mechanisms of the common law system and more.
|Coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing
|Dates & Numbers
|Official State Name
|Ukrainian Hryvnia (₴)
|International Dialing Code
Salary is payable to employees twice a month and the amount shall be indicated in the employee’s employment agreement. Companies that operate a multi-country payroll should take note that it is obligatory to maintain timesheets for companies in Ukraine (including small businesses). These records set the grounds for salary accrual.
Tax and Social Security
Taxes are set out in the Tax Code. Residents are taxed on their worldwide income, subject to restrictions in any applicable Double Taxation Treaty (DTT). The same tax rates apply to tax residents and non-residents (with some exceptions). An individual is enrolled in the state social security system upon signing an employment contract with an Ukrainian employer who is responsible for payment of social security contributions (SSC) at its own expense. Such payment ceases when the employment is terminated.
The tax rate applies to all passive income (e.g. interest, dividends, royalties, investment profits). Income earned by tax non-residents from sources within Ukraine are subject to the same tax rates as those for tax residents unless otherwise stated.
|Corporate Income Tax
|Personal Income Tax
Foreign individuals working in the representative office of a non-resident company are not usually subject to the SSC. Remuneration paid by a non-resident company to an individual working in Ukraine is not subject to the SSC.
|Social Security Rate
|Social Security Rate for Employers
|Social Security Rate for Employees
An employee’s remuneration received is provided for performing employment duties and is subject to the USC (Unified Social Contribution) and regulated by law. The law stipulates that employers must employ the disabled as at least 4% of its annual average entire workforce.
All employees should be provided with an employment agreement which contains details on the employee’s position, date of hiring, salary, terms of payment and more.
Employees working in specified hazardous conditions and employees aged between 16 and 18 may not work over 36 hours per week. While overtime is possible, this must be well documented and compensated.
Employees are entitled to 24 calendar days of base annual vacation (except for individuals providing services under the civil law agreement). Employees may be entitled to additional vacation if working in hazardous conditions and due to the specific nature of work. Vacation allowance is calculated based on the employee’s average daily salary.
Termination can be initiated by either the employer or employee. All terminations are required to be in written form. An employer may terminate an agreement in a limited number of cases such as redundancy, systematic failure to fulfill their employment duties, deteriorating health, unjustified absence for more than three consecutive hours during a work day and more. The employer is obligated to pay the employee the salary for the number of days worked in the month of dismissal, compensation for unused vacation days and any other payments due (bonuses or allowances).
Since 2017, obtaining a work permit has become simplified as the list of documents required was reduced and the period of work permit obtained shortened from a month to two weeks. There is also a minimum salary to be paid to foreign employees, depending on the minimum statutory wage.
There is no need to obtain a visa for applying for a work permit. The visa requirement will depend on the physical presence of the individual in Ukraine. It is generally a visa free regime for citizens of CIS (Commonwealth of Independent States) countries. The EU, US and Japanese citizens may enjoy visa free presence for 90 days in a 180 day period. Where a foreign individual intends to obtain a temporary residence permit, they must obtain the Visa D.
|Work Permit validity
EU national requirements:
Completed application form
Copy of the passport showing personal details
Passport-sized color photo of the employe
Copy of the employment contract with certification
Documents confirming the power to represent the employee
Copies of higher education credentials for applicants who graduated from the top 100 universities
Certified copies of documents, copyright, and related rights for creative professionals
Copy of the agreement for a specific task (where the employee is sent to Ukraine for a specific activity)
Compliant, reliable, error-free and touchless payroll in Ukraine
Build the best team and hire top talent compliantly in Ukraine. Get in touch with Ukraine payroll outsourcing & PEO specialists for a free consultation!
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