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Overview of Ukraine

The Ukraine is a big country in eastern Europe and is known for its orthodox churches, its wooden mountains and the coast on the Black See. It is the second largest country in Europe after Russia. The capital city is Kiew and it has a population of 41.98 million people. Ukraine is home to 7 World Heritage Sites. It is also home to the second largest military in Europe after Russia. In the Ukraine, one of the world’s first ever constitutions was written in 1710. It established a democratic standard for the separation of powers in government. The official language is Ukrainian. About 30% of the population also list Russian as their native language.

Ukranian business people are usually less formal than many other european countries. At the beginning of new business realtionship, Ukranians tend to more cautious. Once the relationship is a bit more established, they will feel more comfortable and are more likely to be frank and open. Meeting schedules are not very rigid and small talk is engaged in before the subject of business is approached. Being trutstworthy and loyal help when conducting business with Ukranians.

Currency of Ukraine

  • Ukrainian hryvnia

Health Insurance and the Social Security system of Ukraine

A switch in the healthcare system was started in 2017 and has continued until 2020. Ukrainian healthcare should be free for citizens but in practice most patients end up paying for it.

The former healthcare system was an inheritance left over from the soviet era and was under-financed and open to corruption and special interests.

A new law passed in 2017 which meant that most Ukrainians have now signed a contract with a primary care physician of their choosing. The National Health Service of Ukraine (NHSU) pays these doctors to deliver a clearly defined set of basic heath services, free of charge.

Employer cost of Ukraine

The cost for an employer to hire someone in the Ukraine is a plus of 22.00% to the gross salary.

Salary and bonuses of Ukraine

Regular employees are paid twice a month.

Commissions, incentives, and bonuses are variable and will be agreed upon directly with the employer.

Public Holidays in Ukraine

  • January 1st – New Year’s Day
  • January 7th – Julian Christmas
  • March 8th – International Woman’s Day
  • moveable – Easter Monday
  • 39 days after Easter – Pentecost Monday
  • May 1st – International Worker’s Day
  • May 9th – Victory Day over Nazism in World War 2
  • June 28th – Constitution Day
  • August 24th – Independence Day
  • December 25th – Christmas Day

Working Hours in Ukraine

Office hours are from 9:00am to 5:00pm, Monday to Friday.

A regular work week is 40 hours.

Overtime is permitted with a maximum of 4 hours during 2 consecutive days and not more than 120 hours are allowed per year. Overtime is compensated with 200% of regular wage and is not usually exchanged for time off.

Vacation in Ukraine

Ukrainians are entitled to a minimum of 24 days of annual leave.

Sick Leave in Ukraine

When one is sick in the Ukraine, the first 5 days are paid by the employer. After this, the Social insurance fund takes over. Sickness pay is based on the average wage of the last 12 months and depends on the contribution period of the the employee:

  • 0-3 years – 50%
  • 3-5 years – 60%
  • 5-8 years – 70%
  • 8+ years – 100%

If the employee has contributed for less than 6 months, the sick leave is based on minimum wage.

Termination/Severance in Ukraine

When terminating an employee in the Ukraine, one must do so by written notice. Valid grounds for a dismissal must be present. An employee cannot be terminated while he is on sick or annual leave. The minimum notice period is 2 months. On average, the severance pay is one month salary.