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Ukraine Compensation & Benefits

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An important aspect of any expansion is sourcing the correct compensation and benefits for employees. First, you have to learn all of Ukraine’s compensation laws, then ensure every employee receives the right guaranteed and supplemental benefits. This work is all on top of running a new location in a foreign country.

Globalization Partners can help the process through Ukraine compensation and benefit outsourcing. As a global PEO, we can use our existing subsidiary and connections to find top talent for your open positions. Then, we’ll create a Ukraine benefit management plan that will cover all your employees and keep you compliant.

Ukraine Compensation Laws

Ukraine’s Labor Law Code includes a section on the minimum wage for unqualified labor, which is around 1,500 UAH a month. Ukraine changes these wages almost monthly, so it’s important to check for any new wages to ensure you’re staying compliant. If you’re hiring for skilled positions, you can negotiate a monthly salary with the employee.

Any hours over a typical 40-hour workweek are considered overtime and should get paid at 100% over an employee’s normal salary. Employees cannot work more than two hours a day of overtime in two days or more than 120 hours per year. However, these compensation laws can change depending on certain labor agreements.

Guaranteed Benefits in Ukraine

Your Ukraine benefit management plan must include guaranteed benefits required by law. For example, the country celebrates 11 public holidays for which employees get the day off. Employees are also entitled to a minimum of 24 vacation days each year. Disabled employees, caretakers, and individuals over 55 get an additional three days off. Plus, employees can take a maximum of seven days paid for personal situations such as a marriage or death in the family.

Maternity leave is another guaranteed benefit in Ukraine. Female employees get 70 days of maternity leave before the delivery and then 56 or 70 days off after the delivery. Women can also take partially paid leave until their child gets to be three years old. The country does not offer any statutory paternity leave.

Ukraine Benefit Management Plan

When you’re ready to disperse benefits, you need to add supplemental ones into your Ukraine benefit management plan. Ukraine does not have a high-quality public healthcare system, so employees often provide private health insurance coverage. Meal vouchers are another optional benefit commonly provided to Ukranian employees.

Although Ukraine does not require a 13th-month bonus like other countries, many employees still provide one. This bonus is considered a gratuity, and employees will provide either that or other performance-based bonuses.

Restrictions for Benefits and Compensation in This Country

If you do not take advantage of Ukraine benefit outsourcing, you must establish a subsidiary before working in Ukraine. The subsidiary setup process can take months and cost a significant amount of money. With Globalization Partners, you won’t have to establish a subsidiary first. We’ll help you start working in a few days and source all the benefits and compensation you need to encourage employees to stay at your company.

Contact Globalization Partners Today

We’re ready to help with your expansion.┬áContact us today┬áto learn more about our services.

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