The Labor Code of Ukraine is a legislative act that polices employment relations in Ukraine. However, various provisions are made more explicit in the subordinate legislative regulations. These include work conditions, wages, leave policies, and other privileges that are usually decided by collective bargaining agreements.
According to the Labor Code of Ukraine, working hours cannot be more than 40 hours a week. However, for some employees, working hours per week have been set at 24 or 36 hours. Some employment categories also allow irregular working hours that can be mutually decided by the employer and employee. The law allows overtime work in exceptional cases. However, overtime work cannot be more than four hours on two consecutive days, and must be capped at 120 hours a year. The compensation for overtime work needs to be double the regular pay.
Employees can take lunch or rest breaks every day for up to two hours. These hours are not cut from their work time. In a five-day working week, employees are given two days off from work. In a six-day working week, they are given one day off (usually a Sunday). In case a public holiday coincides with a day-off from work, the day-off is given on the next working day. Moreover, the labor regulations in Ukraine do not allow work to be done during an employee’s day-off. Based on the legislation, work can only be done on public holidays in special cases. However, the employee will have to be compensated in double the amount. Moreover, the employee can ask the employer for another day off.
The employer and employee must mutually agree to the salary in the work agreement signed before the employee officially joins the business. The labor legislation states that no unqualified labor should be paid below UAH 3200 per month. This minimum wage does not include overtime work, payments for extra work, working in dangerous work conditions that increase health risk, bonuses for special holidays, and anniversaries. In Ukraine, income tax is applied on all salaries. The rate of income tax is currently 18%. Salaries are paid twice a month.
The Ukrainian legislation states that even if the worker did not complete his tasks according to the labor agreement, he is entitled to his salary. This salary comes under guaranteed payments. These payments are given to workers in elective offices, donors, and those who are made to go to qualification courses while at work.
Compensation pay includes remuneration if the employee gets a transfer, gets assigned work at another location, has to take business trips, or needs to pay for a tool required for employment.
Pension and Social Insurance
The labor regulations in Ukraine make it compulsory for each employer to make payments to the State Pension Fund for their employees. Currently, unified social security is 22% of the worker’s remuneration. This is handled by the employer. Additional social insurance is based on the employer’s voluntary decision.
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