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Setting up and managing a payroll in Ukraine
After decades of instability, Ukraine’s economy is showing excellent signs of growth in recent years, with heavy industries such as mining and steel production doing particularly well. The country is brimming with opportunities for the right businesses, and many foreign organizations are looking to grow their interests in the country.
If you are planning an expansion to Ukraine for your business, an important early step will probably be registering a Ukrainian entity, building an in-country payroll, and hiring locally. While this is possible to do independently, it can be a complicated process that could cause delays to your expansion efforts and even negatively impact your profits.
At Horizons, our experts offer Ukraine payroll setup and management outsourcing, enabling your organization to start hiring and expand more quickly and efficiently, whether or not you already have an established entity in the country.
Why choose the Horizons payroll solution?
If you have an entity
If you have already registered an entity in Ukraine, then we can take care of your payroll setup and management, using our expert knowledge of Ukraine’s regulations to keep you fully compliant.
This service is well-suited to larger organizations and those looking to establish a long-term presence in Ukraine.
If you don’t have an entity
If you haven’t established an entity in Ukraine, our dedicated Ukrainian subsidiary can work as your employees’ official employer of record. Our team will handle all of your payroll, contracts, associated legal work, and associated administration, helping you focus solely on a successful expansion.
This service is ideal for any organization aiming for full flexibility and low risk while expanding into Ukraine.
Hire borderless talent with Horizons
Ukraine payroll guide
Tax and withholdings in Ukraine
Rules for entitlements and terminations in Ukraine
Employers in Ukraine can terminate employees in certain circumstances, such as by mutual agreement, but terminations can be very difficult if there is no proper cause for termination. In these situations, we strongly advise enlisting the help of a legal professional to simplify the process and potentially avoid large payouts.
Usually, employees are given severance payments equivalent to one month of salary or more.
How to establish a Ukraine payroll
In most cases, a foreign organization looking to establish a payroll in Ukraine will need to register an official entity within the country. This can take a long time and requires strict adherence to the complex regulations to ensure compliance.
To bypass this complex administration and forego any delays, you can choose to outsource your payroll setup and management to Horizons. We will take care of all the administration, HR, and compliance work, and can even provide our Ukrainian subsidiary to act as employer of record for your employees. With our help, you can be up and running in Ukraine quickly, cost-effectively, and compliantly, whether or not you already have an entity in the country.
Manage payroll in Ukraine
Whether it’s EOR service or just payroll management, Horizons’ employment experts can help you get started in 24h.
