For average employees in Ukraine, the monthly salary is approximately 23,000 UAH. Salaries range from UAH 5,810 (minimum) to UAH 102,000 (maximum, the highest actually may be more) according to salaryexplorer.com
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Ukraine has one of the lowest wage systems in Europe, whereas other countries near Ukraine have higher minimum salaries, especially the European Union (EU).
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The low wage system in Ukraine helps businesses to outsource and make operations smoothly providing a skilled workforce and modern infrastructure.
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Let’s delve into the key influencing factors on salaries in Ukraine, analyse their implications for the locals and the international employees, as well as predict the future landscape of the country.
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In this article, we will see how much can be paid in Ukraine, including sharing the full details that help companies looking for a place to outsource.
Table of Contents
What is the average salary in Ukraine?
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The typical monthly income in Ukraine averages approximately 275,800 UAH annually, with variations ranging from a minimum average wage of 68,320 UAH to a maximum of 1,224,800 UAH.
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The typical annual income in Ukraine averages approximately 275,800 UAH, with variations ranging from a minimum average salary of 68,320 UAH to a maximum of 1,224,800 UAH.
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The salary can fluctuate based on several factors such as city, level of education, occupation, and work experience. For instance, Kyiv City has the highest average wage compared to other cities in the country, with approximately 25,000 UAH (USD 679/month).
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The salaries can vary depending on various factors like location of the company, educational qualifications, occupation, and work experience.
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Let’s explore the different aspects of average salaries in Ukraine
Median Salary
In Ukraine, the median salary stands at 19,600 UAH ($533/month).
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The median salary is the middle salary which means half of the Ukrainian population is earning more than the median salary and half of the population is earning less than 19,600 UAH.
Minimum wage
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According to the Ukranian government, The minimum remuneration that employers should pay to wage workers within a specified period is the minimum wage or salary. The minimum hourly salary in Ukraine is 34 UAH (USD 0.92/hour). The Average Minimum wage in Ukraine is 130 UAH (USD 3.38/hour).
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The minimum wage per month is 7,100 UAH this rule is applied from January 2024. And from April 2024 the minimum wage per month will change to 8,000 UAH.
Salary comparisons based on various factors
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1. Based on education
Education plays an important role in salary structure, the basic salaries for different degrees keep varying
| Education Level | Salary Percentage |
|---|---|
| High school | +7% |
| Certificate or diploma | +17% |
| Bachelor’s degree | +24% |
| Master’s degree | +29% |
| PhD | +23% |
Source: salaryexplorer.com
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2. Based on profession
Salaries in Ukraine vary depending on the different professions
| Profession | Average Salary |
|---|---|
| Accounting Manager | 16,100 UAH |
| Financial Manager | 29,400UAH |
| Secretary | 10,800 UAH |
| Pilot | 41,500 UAH |
| Teacher | 18,600 UAH |
| Engineer | 22,700 UAH |
| Police Officer | 13,400 UAH |
Source: salaryexplorer.com
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3. Based on city
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The average salaries in Ukraine vary from city to city
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1. Kyiv city:
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The Most popular and the capital city of Ukraine is Kiev which has the highest English proficiency among all the cities in Ukraine.
The average salary in Kyiv is 25,100 UAH
Normally, the average monthly salary spans from a minimum of 6,320 UAH (the lowest average) to a maximum of 111,000 UAH. Also, the median salary in Kiev is approximately 21,700 UAH (USD 590/month).
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2. Lviv city:
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Lviv city is one of the largest cities in western Ukraine. The average salary in Lviv is approximately 23,800 UAH (USD 647/month), while the minimum is 6,010 UAH and the maximum is 106,000 UAH.
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The median salary in Lviv is approximately 21,900 UAH per month. Those workers with 2-5 years of experience get paid 32% more than freshers or juniors.
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Source: salaryexplorer.com
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Annual Average Salary Increase in Ukraine
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Salary adjustment in Ukraine is expected to be done with an 8% increase approximately every 18 months.
Generally, an Annual Salary Increase means it should be an annual, 12 calendar month period. However, people are often not paid their additional add-ons exactly on the one-year mark, so it is better to know the frequency and the rate when they increase, not just when they made the increase.
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1. Annual Average Salary Increase by Different Industries
These are the annual average increases in different industries
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| Profession | Annual Average increase |
|---|---|
| Energy | 2% |
| Banking | 1% |
| Healthcare | 4% |
| Education | 7% |
| Information Technology | 3% |
Source:salaryexplorer.com
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2. Annual Average Salary Increase by Experience
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These are the average annual increases in salaries depending on the experience level
- A junior-level employee will get a hike of around 3-5% per year
- A mid-level employee will get an increase in salary of around 6-9% per year
- A senior-level employee will get an increase in salary of around 10-15% per year
- A top management level employee will get an increase in salary around 15-20% per year
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Why should you outsource your company to Ukraine?
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Here are some of the benefits of outsourcing your business to Ukraine
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1. Cost-effective:
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Ukraine offers significantly lower labour costs compared to Western European countries or the United States. According to various studies, the average hourly rates for IT outsourcing services in Ukraine are approximately one-third to half of the countries in the West, making it a cost-friendly destination for outsourcing operations.
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2. Skilled workforce:
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Ukraine has a large number of highly skilled professionals, especially in fields like Information Technology, software engineering, construction, mathematics, and sciences. The country has a strong technical culture with many universities offering specialized courses and producing top-notch graduates and experts in the latest technologies.
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3. Quality of work:
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Ukrainian outsourcing companies have a reputation for quality and orientation to excellence. They comply with international standard quality and best practices, thus guaranteeing that deliverables are at the minimum of client expectations or even exceeding. Multiple Ukrainian companies have received certifications, such as ISO 9001, ISO 27001 and CMMI to present their commitment to quality management and information security.
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4. Time Zone advantage:
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The time zone benefit of Ukraine is presented in its alignment with the Eastern European Time (EET) zone, thus many European countries have working hours that are matched with Ukraine’s.
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This sync partnership with Ukrainian outsourcing teams and their clients ensures easy collaboration providing little delay in communication and improved project efficiency. Moreover, the short-term flights to European countries of the UK, Germany, and Belarus give swift travel possibilities for crucial work purposes.
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Also, tourists from the US, Canada and EU countries are welcome to visit the country even without a visa and they can stay for a maximum of 90 days for business purposes which helps to promote convenience and flexibility in international cooperation.
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5. English proficiency:
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English proficiency is widespread among Ukrainian professionals, especially those working in the IT and outsourcing sectors. Many Ukrainians have excellent communication skills in English, allowing clear and effective communication with clients, stakeholders, and team members from English-speaking countries.
5 best industries to outsource to Ukraine
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1. Information Technology (IT) and software development:
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Ukraine has a thriving IT sector with a large pool of highly skilled software developers, engineers, and IT professionals. Outsourcing Information Technology and software development projects to Ukraine is popular due to the country’s technical expertise, innovation, and cost-friendly.
IBM, Oracle, SAP, and Adobe are the few countries that outsource to Ukraine.
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2. Business Process Outsourcing (BPO):
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Ukraine provides a full list of BPO services, such as customer support, data entry, finance and accounting, HR, and back-office operations. Outsourcing these chores to Ukraine will help enterprises simplify their processes, cut costs, and enhance effectiveness.
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3. Engineering and Manufacturing:
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Ukraine is well-developed in the sphere of engineering and manufacturing, primarily in sectors such as automotive, machinery, and electronics. Engineering and manufacturing outsourcing to Ukraine may benefit from the country’s pool of trained personnel, advanced facilities and competitive prices.
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4. Research and Development (R&D):
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The research environments of Ukraine comprise research and educational institutions, universities, and R&D centres that deal with advanced research in areas of biomedical technology, pharmaceuticals, nano-technology, and renewable energy among others. The benefits of outsourcing R&D projects in Ukraine include the country’s intellectual property and scientific experience.
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5. Creative Industries:
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Ukraine has a steadily growing creative industry that includes such subsectors as graphic design, multimedia production, animation, and advertising. Outsourcing creative tasks to Ukraine can bring numerous advantages one of which is access to the country’s talented artists, designers, and creative specialists who provide original and high-quality services at a reasonable cost.
Cost of living in Ukraine
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1. Housing costs:
The monthly rent of a 480 square feet fully furnished studio apartment in the expensive part of the city is about 17,180 UAH (447.07 USD).
The monthly rent of a furnished 45 m2 studio in the normal area is around 12,579 UAH (327.32).
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2. Transportation costs:
The public transport system is represented by the metro, trolleybuses, trams and buses. A one-way ticket will cost $0.27 (10.00 UAH), while a monthly pass will be $8.80 (325 UAH). A typical cost of a taxi ride in one of the largest cities of Ukraine varies from $4 to $8 (150 – 300 UAH). The text explains how taxis operate during curfews or air raids here.
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3. Healthcare:
According to the theory, healthcare in Ukraine is free for all citizens but in practice when a user gets a high standard of services, in most cases he pays extra for equipment required for surgery and other things not included in the basic assistance. Doctors and professionals might incur additional charges for their time.
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4. Income tax:
The standard rate of 18% is applied to salary, benefits under employment and civil agreements, income obtained from abroad, and any other income not mentioned above. Income received abroad is taxed at the rate of 18%.
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Note: The cost of living in Ukraine can vary depending on various factors such as location, lifestyle, and individual preferences. While certain values may be provided as estimates or averages, it’s important to recognize that actual expenses can differ significantly based on personal circumstances.
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Is it a good idea to outsource your business to Ukraine?
Absolutely, Ukraine can proudly claim to have a highly qualified and motivated labour force, characterized by expertise in such sectors as information technology, software development, engineering, and sciences. The country has cost advantages over its Western country’s counterparts in terms of labour costs which enable firms to achieve huge cost savings without lowering quality.
 Furthermore, Ukraine’s time shift in the same time zone as many European countries make online teamwork and communication very productive. Furthermore, the country features a healthy political environment, an excellent educational system, and government backing of IT and outsourcing sectors that create a favourable business environment.
Businesses that outsource to Ukraine can take advantage of an extremely high-quality talent pool, better processes, and quicker project completions, and are ahead of the competition.
Along with the help of Time Champ, you can excel at monitoring the activities of your employees to enhance the productivity of the employees.
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What is Time Champ?
Time Champ is an employee monitoring and time tracking software that helps to enhance the productivity levels of your employees by continuously monitoring and tracking all the apps and websites that an employee has visited.
Time Champ provides all the productive and non-productive apps used by the employee and the total time spent working during the working shift.
Some of the Key Features of Time Champ:
1. Employee monitoring:
Time Champ’s Employee Monitoring feature allows employers to view employee’s real-time working status with this feature, employers can track various aspects of employee activities, including time spent on tasks, websites visited, applications used, and overall productivity levels.
The employee monitoring feature provides detailed insights into individual and team productivity trends, allowing managers to identify top performers, recognize areas for improvement, and provide targeted coaching or training as needed.
Moreover, Time Champ’s employee monitoring feature promotes transparency and accountability within the organization. Employees are empowered to track their productivity levels, set goals, and monitor progress towards achieving targets. This fosters a culture of accountability and self-improvement, driving employee engagement and motivation.
2. Task Management:
Using Time Champ Task Management can become easier and analysis of the working performance of an employee becomes easier to assign a task to a particular employee will become clear and easier.
All the information captured through the software about the employee’s productive, non-productive, and neutral time is displayed in the form of graphical sheets called heat maps, depending upon the company’s requirements the authority to view and edit such details will be given.
3. Automatic Attendance:
Time Champ Software automatically captures the Employee Attendance when logged in through the installed computer or laptop, so there is no need to manually enter the attendance.
4. project management:
Time Champ’s Project Management feature helps businesses to track and monitor the status of a specific project as per company requirements Employers can set up the tasks for each team to complete within the given time.
With this feature, teams can efficiently plan, execute, and track projects from start to completion, assuring that tasks are completed on time and within budget.
5. Time tracking and Audio tracking:
By using the Time tracking feature, you will be able to view every detail about your employee activities such as login and logout time, productive, non-productive, and neutral hours. Idle time, working time, and break time.
The audio tracking feature lets you record any audio from both ends for security reasons and future reference.
Conclusion
It is a real challenge to relocate your business to Ukraine since such action brings about a number of advantages. Ukraine can proudly claim to have a highly qualified and motivated labour force, characterized by expertise in such sectors as information technology, software development, engineering, and sciences. The country has cost advantages over its Western country’s counterparts in terms of labour costs which enable firms to achieve huge cost savings without lowering quality. Furthermore, Ukraine’s time shift in the same time zone as many European countries make online teamwork and communication very productive. Furthermore, the country features a healthy political environment, an excellent educational system, and government backing of IT and outsourcing sectors that create a favourable business environment. Businesses that outsource to Ukraine can take advantage of an extremely high-quality talent pool, better processes, and quicker project completions, and are ahead of the competition. And with the help of Time Champ’s employee monitoring features your business can excel even after outsourcing to a new destination like Ukraine.
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The average salary in Ukraine is generally lower than in many Western European countries and the United States. However, it varies depending on factors such as industry, location, and job role. On average, salaries in Ukraine can range from a fraction of those in Western countries to around half or two-thirds of the average salary in countries like the United States.
The comparatively lower average salary in Ukraine makes it an attractive destination for outsourcing, particularly for businesses seeking cost-effective solutions without compromising on quality. Outsourcing to Ukraine allows companies to access skilled professionals at competitive rates, helping them reduce operational costs and increase efficiency.
In Ukraine’s outsourcing industry, salaries can vary depending on factors such as job role, experience, skill level, and location. Generally, professionals in IT, software development, engineering, and other technical fields command higher salaries compared to roles in administrative or customer support functions. Entry-level positions may start at lower salaries, while senior or specialized roles can earn significantly higher salaries.
While salaries in Ukraine may be lower than in Western countries, it does not necessarily reflect the quality of outsourcing services. Ukrainian professionals are known for their high level of expertise, technical skills, and commitment to delivering quality work. Businesses outsourcing to Ukraine can expect to receive high-quality services that meet or exceed international standards.
Yes, Ukraine has government regulations in place regarding minimum wages and labour standards. The minimum wage in Ukraine is set by law and is adjusted periodically based on various economic factors. It’s essential for businesses operating or outsourcing to Ukraine to ensure compliance with local labour laws and regulations regarding salaries and benefits.
When outsourcing to Ukraine, businesses should establish clear communication channels and expectations regarding salaries and bonuses. It’s crucial to conduct thorough research on standard salary rates in the industry and region and to negotiate fair and competitive salaries based on the qualifications and experience of the professionals being hired.
Despite variations in salary levels, Ukraine maintains a large pool of highly skilled professionals available for outsourcing projects. The country’s strong educational system, technical expertise, and favourable business environment attract talent from various industries, assuring a regular supply of skilled professionals for outsourcing initiatives.
Yes, businesses outsourcing to Ukraine should be aware of tax implications related to salary payments and employee benefits. Ukraine has its own tax system with specific rules and regulations governing income tax, social security contributions, and other taxes related to employment. Additionally, the Ukrainian government may offer tax incentives or benefits to businesses investing in certain industries or regions, which can impact salary considerations.
While salaries in Ukraine may be lower compared to some Western countries, the cost of living in Ukraine is also generally lower. This means that even though salaries may seem lower in absolute terms, they often provide a higher standard of living relative to local expenses. Businesses outsourcing to Ukraine should consider both salary levels and cost of living factors when assessing the overall value proposition of outsourcing to the country.
Currency exchange rates play a significant role in determining the actual cost of outsourcing to Ukraine for businesses based in other countries. Any ups and downs in exchange rates can impact the value of salaries paid to Ukrainian professionals when converted from foreign currencies. Businesses should monitor exchange rate trends and factor them into their budgeting and financial planning for outsourcing projects.