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IMPACT – MEDIUM
What is the change? As of Jan. 1, the statutory minimum wage for workers increased to 4,173 hryvnia (about US$150) per month. The minimum monthly salary for foreign employees, not including special local hires and accreditation (service) card applicants, is 41,730 hryvnia per month.
What does the change mean? In 2017, Ukraine abolished labor market testing requirements, imposed minimum salaries for foreign workers and published a salary scheme for foreign employees. The scheme establishes the minimum monthly wage required for foreign workers depending on the work authorization type.
The chart below lists the current salary requirements, as determined by Ukraine’s salary requirement scheme and the new statutory minimum wage:
Minimum five times the statutory minimum wage per month (5 x UAH 4,173) for employees of NGOs, charities and educational institutions
One statutory minimum wage per month (1 x UAH 4,173) for other types of Special Local Hire work permits
20,865 hryvnia for employees of NGOs, charities and educational institutions
4,173 hryvnia for other types of Special Local Hire work permits
* The Special Local Hire work permit is applicable only for foreign IT professionals, creative professionals, founders (members, beneficiaries, controllers) of legal entities set up in Ukraine and graduates from world-rated universities.
**The Accreditation (Service) Card is available for foreign workers employed in representative offices of foreign companies in Ukraine.
Analysis and Comments: Employers should budget for the new minimum salaries, which represent a 12-percent increase over the previous thresholds.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
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