Destinations Catalog

Ukraine

Ukraine
Population:
42 386 400
Capital:
Kyiv
UTC:
+02:00
Ease of Doing Business Index:
76
Currency:
UAH ($1 = UAH 27.17)
Unemployment Ratio:
9.3%
Income Tax:
5%
Corporate Income Tax:
18%
Social Tax:
22%
Notice Period:
2 weeks
Dismissal Period:
2 months
Turnover Ratio:
$4500 million
Office Rent:
$4-40/m2
IT Headcount:
115 000
IT Graduates:
48 000
Average Salary
Junior
Middle
Senior
Lead
$ 650
$ 1 700
$ 3 420
$ 4 750
English Level
Moderate Proficiency
Main IT Outsorcing Destinations
Cities
IT Headcount
8 000
8 000
14 500
42 000
20 000
Main IT Outsorcing Destinations
Cities
IT Headcount
8 000
8 000
14 500
42 000
20 000
Ukraine
Country Description

Ukraine is one of the largest countries in Europe. Its population amounts to nearly 45 mln people. For the past years, the country has moved significantly forward in its relationship and cooperation with European and American businesses. Numerous positive changes have been brought to Ukraine through reforms in the economy, pension system, education, medicine, etc. since 2017. Another significant step bringing the country closer to the EU was the vote for providing visa-free travel between Ukraine and Europe. This allows benefiting the local IT industry even more with travel proximity reduced owing to the improved travel connection.

Population
42 386 400
Capital
Kyiv
UTC
+02:00
Currency
UAH ($1 = UAH 27.17)
Ease of Doing Business Index
76
Unemployment Ratio
9.3%
Income Tax
5%
Corporate Income Tax
18%
Social Tax
22%
Notice Period
2 weeks
Dismissal Period
2 months
Turnover Ratio
$4500 million
Office Rent
$4-40/m2
IT Headcount:
115 000
IT Graduates:
48 000
Average Salary
Junior
Middle
Senior
Lead
$ 650
$ 1 700
$ 3 420
$ 4 750
English Level
-------

*If you noticed an error or considered some information to be outdated, please, contact us at team@outsourcingreview.org

Country Description

Ukraine is one of the largest countries in Europe. Its population amounts to nearly 45 mln people. For the past years, the country has moved significantly forward in its relationship and cooperation with European and American businesses. Numerous positive changes have been brought to Ukraine through reforms in the economy, pension system, education, medicine, etc. since 2017. Another significant step bringing the country closer to the EU was the vote for providing visa-free travel between Ukraine and Europe. This allows benefiting the local IT industry even more with travel proximity reduced owing to the improved travel connection.

Income Tax

IT industry in Ukraine works in accordance with the Civil Law, not Labor Law, therefore all software engineers are registered as PE (Private Entrepreneurs) and pay a fixed 5% rate of a single tax from their income.

If an employee is employed in accordance with the Labor Law of Ukraine, the employee pays 18% off the salary as well the employer pays 22% of the social tax.

Social Тax

Social tax is calculated depending on the form of employment and salary size.

If an employee is registered as natural person-entrepreneur, the social tax amounts to 22% of the minimum salary but shall not be less then UAH 820.

In case is an employee is registered in accordance with the Labor Law, 0% of the salary is paid as a social tax by the employee. However, an employer is charged 22% off the employee’s salary but shall not be less than UAH 820.

Notice Period

According to the Ukrainian legislation, labor contract/agreement is usually terminated upon the following conditions:

  • agreement between the parties;
  • the expiration of its period;
  • the decision of one of the parties.

In case of dismissal, the employee is notified in advance. In Ukraine, the general notice period prior to dismissal is 2 months. Of course, if an employee and employer reach an agreement, the period prior to dismissal may be reduced.

Dismissal Conditions

No dismissal conditions have been established by the current legislation of Ukraine, however, the companies are able to establish their own based on its internal rules and regulations. Still, the dismissal period of 2 months, if mandatory for the employee, shall be followed. If the dismissal conditions have not been well-grounded or explained, an employer may be taken to the court for unlawfully firing a staffer. From this perspective, employees are protected by the law, in cases, when an employer closes down the business or provides other significant reasons for the dismissal.

Hiring Period

Ukrainian legislation does not envisage the hiring period for an employee into the company, therefore it is discussed and established within the company or individually with the potential staffer: it varies between 10 to 90 days. The trial period in the Ukrainian IT companies usually doesn't exceed 3 months, and specialists, upon meeting the hiring requirements and possessing the necessary set of skills, are usually hired within 2-4 weeks.

IT Headcount

Currently, there are over 3000 IT companies in Ukraine providing different types of services based on outsourcing, outstaffing, and other types of business models. Amidst the well-known companies/services established and created in Ukraine are Grammarly, Terrasoft, InvisibleCRM, DepositPhotos, Jooble, Paymentwall, etc.. with the number of IT specialists exceeding 115K in total. Local IT market is growing rapidly owing to a large number of clients from Europe and the USA. One of the points that have helped Ukraine to establish its presence on the global IT arena is its beneficial location and travel proximity, especially after signing visa-free regime with the EU.

IT Graduates

As to the education, Ukrainian schools and universities, both private and public, offer numerous courses with 45K graduates annually. Hence, the IT industry is constantly fueled by new specialists which is another pros of the industry. Although many young people criticize the Ukrainian educational system calling it outdated and ineffective, the experienced specialists today say that it is a must-have to reach high in the modern IT market. Many universities have established a tight relationship with IT companies and often invite the specialists to lecture the students and share some practical experience. Along with that, students are often invited to take part in master classes and conferences which also help to make useful acquaintances and learn lots of new things from their senior colleagues. Amidst the most popular universities in Ukraine that prepare IT specialists are:

  • the National Technical University of Ukraine “Kyiv Polytechnic Institute”
  • Taras Shevchenko Kyiv National University
  • National University “Lviv Polytechnic”
  • Kharkiv Radio Electronics National University
  • Ivan Franko Lviv National University

Average Salary

IT sphere is one of the most promising and highly paid industries in today’s Ukrainian market. High salaries and tonnes of opportunities are probably the main things that attract young people to join the IT world. Taking a look at the dynamics of the salaries for IT specialists, there has been noticed a significant growth in salaries for middle and senior level staffers. Depending on the technological skills set, salaries have grown by 0.8-1.5 times within 5 years. Such continuous growth is explained by the growing number of international cooperation of the Ukrainian companies as well as global players tech players’ presence at the Ukrainian IT arena.

As to the average salaries, the companies in Belarus offer the following according to the experience:

  • Junior Software Developer – $650
  • Middle Software Developer – $1700
  • Senior Software Developer – $3420+
  • Technical Lead – $4750
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*If you noticed an error or considered some information to be outdated, please, contact us at team@outsourcingreview.org