Employment in Ukraine: difficulties foreigners have to overcome since the beginning of 2020
Author: Svitlana Mozharivska, Head of Legal Department at ABEA Relocation
For those who still do not know we officially declare that Ukraine is a country of the opportunities. This is not because it has the most delicious cuisine, the most interesting youth, or the most beautiful spring. This is because it is quite easy to build a business in Ukraine, tax rates are low, procedures of foreigners’ employment, although sometimes confusing, are clear enough. Just get a reliable partner here and nothing is impossible!
Today we will talk not about opportunities, but rather the opposite. Imagine a company with foreign employees in staff. It might be a large bank with foreign capital, a small restaurant serving authentic Asian cuisine, or a small construction company with unique specialists – the choice is yours. The kind of activity does not matter a lot, as in each country any activity has its own difficulties. More about it below.
According to the current legislation, the salaries of employed foreigners must be at least 10 minimum salaries set in the budget. Besides, given that since 01.01.2020 the wage rate has risen, the minimum wage of a foreigner should be at least 1700 Euro per month. Impressive, right?
Such a high minimum wage rate causes difficulties for many companies, as not only highly paid specialists are required. After all, sometimes you need to invite ordinary chefs, assistants, engineers, adjusters of certain equipment, or even young specialists to teach here. There are ways of reducing wages, but you need to be very careful with them.
2) Official payment for a work permit
The same as the wage rate, each January of the following year the official payment rate for a work permit increases. The company employer will have to pay no less than 200 euros for a permit for 6 months, 300 euros for a 1-year validity permit, and a bit more than 420 euros for a permit for 3 years.
3) There is no way to ignore this issue in 2020
Since March 16, 2020, Ukrainian borders closed. We even do not know who is in a more complicated situation – the ones who planned to come to Ukraine but could not or who have already been here and did not manage to leave the country in time.
The first group can enter Ukraine, having a temporary or permanent residence permit – being residents, they are allowed to come; while the only way for a second group is to apply to the country of citizenship for an official evacuation.
Moreover, the regular flights by air and ground transport have been canceled. That is, in case of need and opportunity it is possible to cross the border of Ukraine, only by car.
The last – 2/3 of checkpoints have been closed. Before going on a trip, Foreigners must choose a working checkpoint first (fortunately – the list is available online).
We want to believe that it will all be over soon. The borders will be opened, and it will be like before or even better. Let the difficulties overcome at the beginning of the year will be a springboard to success in the second half. 2020 – you must be successful!
More information at https://abea.com.ua/