Employee Leasing Ukraine

Ukraine’s growing economy and strategic location make it an increasingly attractive destination for multinational companies seeking to expand their operations.

About Employee Leasing in Ukraine

The country boasts a vibrant and highly skilled workforce, a developing infrastructure, and government initiatives aimed at fostering a business-friendly environment. Additionally, Ukraine offers competitive labor costs and a range of incentives to encourage foreign investments, particularly in industries such as IT, agriculture, manufacturing, and renewable energy.

One of the most efficient ways to tap into Ukraine’s abundant opportunities is through employee leasing. Partnering with FMC Group for employee leasing in Ukraine simplifies the expansion process, enabling businesses to access Ukraine’s exceptional talent pool without the need to establish a local legal entity. Furthermore, FMC Group provides comprehensive support that goes beyond recruitment, offering day-to-day administrative management of employees to ensure smooth operations and compliance with local regulations.

Get in Touch with Us

Stephan Dorn
Managing Partner

Advantages of Employee Leasing in Ukraine

Employee leasing provides businesses with tremendous flexibility when expanding into a new market, allowing them to measure their potential as things progress.
Employee leasing in Ukraine allows companies to fully benefit from the quality of the Ukrainian labor force while reducing expansion costs and risks.
Employee leasing helps businesses focus on their growth strategy without worrying about the administrative management of their employees, as it is fully handled by FMC Group.

Employee Leasing Services Offered by FMC Group

Preselection of candidates based on the client’s needs;
Conduction of the recruitment process with the best candidates;
Negotiation of employment contracts;
Payment of taxes and social contributions according to local laws;
Management of the payroll according to international standards;
Monitoring paid vacations;
Implementation of private health insurance if needed;
Maintaining constant communication with clients regarding the management of their employees.

Management and Reporting Flow of Employee Leasing Services

Advantages of the Ukrainian Market

Ukraine is one of the most promising business locations in Eastern Europe. It boasts a rapidly growing economy, with a GDP exceeding USD 200 billion. The Ukrainian economy is highly diverse, offering investment opportunities across various sectors, including information technology, agriculture, manufacturing, and renewable energy.
With a population of over 41 million, Ukraine represents a significant market. Additionally, its strategic location serves as a gateway between Europe, Asia, and the Middle East, providing access to a wide range of regional markets. Ukraine has also signed multiple trade agreements, including its Deep and Comprehensive Free Trade Agreement (DCFTA) with the European Union, further enhancing its appeal to investors.
In recent years, the Ukrainian government has focused on creating a more favorable business climate by implementing reforms aimed at reducing bureaucracy, improving transparency, and combating corruption. Efforts are also underway to modernize the tax system, with competitive corporate tax rates and incentives designed to attract foreign direct investment.
Ukraine is renowned for the quality of its labor force, particularly in the IT and engineering sectors. Its talent pool includes highly skilled professionals with strong technical expertise, thanks in part to the country’s robust higher education system. Ukraine produces a large number of graduates annually, many of whom excel in science, technology, engineering, and mathematics (STEM) fields.
The country also offers reliable infrastructure, with ongoing improvements in logistics and telecommunications. Ukraine has an extensive rail network, major seaports along the Black Sea, and well-connected roadways that facilitate domestic and international trade. In addition, Ukraine’s IT infrastructure is highly developed, supporting the needs of its booming technology sector.

Recruitment in Ukraine

Minimum Wage and Payroll
The national minimum wage in Ukraine is regulated and periodically updated by the government to align with economic conditions. As of April 1, 2024, the minimum wage is set at UAH 8,000 per month, or UAH 48.00 per hour. Employers typically follow a monthly payroll cycle, with salaries disbursed by the last working day of the month.
Ukrainian labor laws mandate mid-month advance payments to ensure employees receive consistent and timely compensation.
Social Contributions and Taxes
Employers in Ukraine are required to pay a Unified Social Tax (UST) amounting to 22% of the employee’s gross salary. However, the taxable base for the UST is capped at 15 times the average cost of living.
The 22% UST is distributed among several funds, including those for unemployment, workplace accidents, pensions, and temporary disability benefits.
Employees, on the other hand, are subject to:

Working Hours and Overtime
In Ukraine, standard working hours are capped at 40 hours per week.
Overtime work must be compensated at double the regular hourly rate, as mandated by labor law. Additionally, overtime is limited to four hours over two consecutive days and cannot exceed 120 hours per year.
Vacation Days
Employees in Ukraine are entitled to the following paid public holidays

New Year’s Day
Orthodox Christmas Day
International Women’s Day
Ascension Day: Between May and June (moveable)
Orthodox Easter Sunday
Trinity Sunday
Labor Day (two days): December 25 – December 26
Day of Remembrance and Victory
World War II Victory Day
Orthodox Trinity Sunday
Ukrainian Constitution Day
Independence Day
Ukraine Defender’s Day
Christmas

Parental Leave and Sick Leave
Female employees in Ukraine are entitled to 70 calendar days of paid prenatal leave and 56 calendar days of paid post-delivery and child care leave. In the case of multiple births or post-delivery complications, the post-delivery leave is extended to 70 days.The State Social Insurance Fund provides maternity leave benefits, paying 100% of the employee’s average monthly salary for up to six months.
Fathers receive 14 days of paid paternity leave within three months of the child’s birth.
Adoptive parents of children under one have the same leave rights as biological mothers.
Sick leave benefits in Ukraine are determined by the duration of employment and range from 50% to 100% of the employee’s pay. The first 5 days of sick leave are compensated by the employer, while any additional days are paid by the Ukrainian State Social Security Fund.
Notice Period
In Ukraine, labor laws generally require employees to give a two-week notice when resigning, regardless of their length of service.
For managerial roles or positions with specific contract terms, notice periods may vary as defined in the employment agreement.

Disclaimer: Although we carefully researched and compiled the above information, we do not give any guarantee with respect to the actuality, correctness, and completeness.