🇺🇦 Ukraine Outsourcing

Outsource to Ukraine: Hiring Software Engineers in Ukraine

Ukraine stands as an emerging economy with a thriving technology sector. Specializing in Enterprise software, AI/ML and Blockchain, Ukraine offers unique advantages for companies looking to expand their development teams globally.

Already found qualified software engineers or other talent to work with in Ukraine? Hyperion360 can be your Employer of Record (EOR) in Ukraine. Hyperion360 helps you pay your team members anywhere in the world. If we don't have a local entity in a particular country we have a vast network of payroll partners who can help allowing you to hire top talent almost anywhere in the world. Need help finding software engineers in Ukraine? Contact us.

The Hyperion360 Talent Score for Ukraine is determined by evaluating and averaging several key factors that influence the attractiveness and viability of hiring software engineers in the country. These factors are assessed on a scale from 1 to 10, where 10 represents the highest performance or most favorable conditions.

Hiring Software Engineers in Ukraine

Ukraine: Europe’s Rising Tech Hub

Ukraine has emerged as one of Europe’s most dynamic technology destinations, ranking 4th globally in the number of certified IT professionals. Despite current challenges, the country’s tech sector continues to demonstrate remarkable resilience, with many companies successfully maintaining operations and serving international clients.

Top US Tech Firms Outsourcing to Ukraine

Ukraine has been a strategic outsourcing destination for major US technology companies, with many maintaining long-term partnerships:

Major US Companies with Operations in Ukraine:

• Microsoft - Development centers in Kyiv working on Azure, Office 365, and enterprise solutions
• Google - Engineering teams focusing on search technologies and cloud infrastructure
• Oracle - Software development teams working on database and enterprise applications
• Cisco - R&D operations developing networking and cybersecurity solutions
• Samsung - Major R&D center in Kyiv focusing on mobile technologies and software development
• Snap Inc. - Engineering teams working on Snapchat platform and AR technologies
• Ring (Amazon) - Development teams working on smart home security technologies
• Grammarly - Ukrainian-founded company serving millions of US users with AI-powered writing assistance
• GitLab - Significant engineering presence supporting the global DevOps platform
• JetBrains - Czech-founded company with major Ukrainian operations developing developer tools

Why US Companies Choose Ukraine:

• Exceptional Talent Quality: Strong mathematical and technical education producing world-class developers
• Time Zone Advantage: Perfect overlap with European business hours, good coverage for US East Coast
• Cost Efficiency: 50-70% cost savings compared to Western European development teams
• English Proficiency: High level of English fluency among IT professionals
• Cultural Compatibility: Strong understanding of Western business practices and work culture
• Resilient Workforce: Demonstrated ability to maintain operations and deliver results under challenging conditions

Key Facts About Hiring Software Engineers in Ukraine

• Large Talent Pool: Ukraine boasts a vast talent pool of skilled software developers. As of 2023, over 200,000 IT professionals are working in the Ukrainian tech sector.
• Cost-Effective: Ukraine offers a cost-effective hiring option compared to Western Europe and the US, with competitive salaries for highly skilled talent.
• Quality of Work: Ukraine has a strong focus on technical education and a thriving IT sector, leading to a workforce known for its high-quality work.
• Time Zone: Ukraine’s Eastern European Time (EET) zone provides excellent overlap with both European and US working hours, facilitating real-time collaboration.
• Language: English proficiency among IT professionals in Ukraine is high, ensuring smooth communication.
• Ease of Doing Business: Ukraine ranks 64th in ease of doing business, with an improving environment for the tech sector.
• Innovative Tech Scene: Ukraine has a vibrant startup ecosystem and a strong presence in the tech industry, contributing significantly to global technological advancements.
• Software Market Revenue: The Ukrainian software market generated over $6 billion in revenue in 2023, reflecting its robust and growing IT sector.
• Number of IT Companies: Ukraine is home to around 4,000 IT companies, from innovative startups to established multinational firms.
• Internet Infrastructure: Ukraine boasts a well-developed internet infrastructure with a high penetration rate. Major cities like Kyiv, Lviv, and Kharkiv have robust broadband connectivity, supporting the needs of tech companies and remote work.
• Universities and Education: Ukraine’s top universities, such as National Technical University of Ukraine (Kyiv Polytechnic Institute), Taras Shevchenko National University of Kyiv, and Lviv Polytechnic National University, offer highly regarded computer science and engineering programs. These institutions are known for their rigorous curriculum, research output, and strong ties with the tech industry, producing graduates who are well-prepared for the demands of the global IT market.

Benefits of Hiring Software Engineers in Ukraine

• Exceptional Technical Proficiency: Ukrainian software engineers are known for their advanced technical knowledge and problem-solving abilities, proficient in languages such as Java, C#, JavaScript, and Python.
• Culture of Innovation and Creativity: Ukraine’s tech ecosystem thrives on innovation and creativity, fostering an environment where software engineers excel.
• Cost-Effective Talent: Hiring software engineers in Ukraine offers high returns on investment due to the skilled talent pool and strong technical education system.
• Flexible Hiring Options: With Hyperion360, companies can hire Ukrainian software engineers through various methods, including direct hiring or setting up a foreign entity in Ukraine with our legal partners’ assistance.
• Thriving Tech Scene: Ukraine’s vibrant tech ecosystem, rich with innovative startups and established tech firms, offers ample opportunities for collaboration and growth.

Benefits of Outsourcing to Ukraine

Ukraine stands as a major player in Eastern Europe’s tech industry, offering numerous advantages for businesses:

• A Robust Market: Ukraine’s diverse economy includes a strong tech sector, advanced manufacturing, and a growing service industry.
• Strategic Trade Access: Ukraine’s strategic location provides access to major European and global markets, enhancing its trade and business opportunities.
• Advanced Infrastructure: Ukraine boasts modern infrastructure, including efficient transportation systems and world-class telecommunications, facilitating smooth business operations.

Common Pitfalls of Hiring Software Engineers in Ukraine

While Ukraine offers many benefits, there are some challenges:

• High Demand for Talent: The demand for skilled engineers is high, leading to competition for top talent. Hyperion360’s extensive network and staffing solutions help you secure the best talent quickly and efficiently.
• Regulatory Environment: Navigating Ukraine’s regulatory landscape can be complex. Hyperion360 helps manage legal and compliance aspects to ensure smooth operations.
• Cultural Differences: Understanding and adapting to Ukraine’s business culture is crucial. Hyperion360 bridges cultural gaps, ensuring seamless interactions and successful collaborations.
• Intellectual Property Concerns: Protecting intellectual property is vital. Hyperion360 offers guidance and support to safeguard your business assets.
• Language Barriers: While many IT professionals speak English, regional language differences may still exist. Hyperion360 facilitates effective communication and integration with your team.

Hyperion360’s tailored solutions address these challenges, enabling you to successfully hire and manage software engineers in Ukraine with confidence and ease.

Business Etiquette in Ukraine

Understanding cultural nuances is vital for successful business interactions in Ukraine. Here’s a detailed guide to help you navigate these intricacies effectively:

Greetings

• Handshakes: Greet and leave colleagues with a firm handshake. This is customary for both men and women. When attending a meeting, address all colleagues individually when saying hello and goodbye.
• Titles: Use professional titles and last names when addressing colleagues, unless invited to do otherwise.

Communication Style

• Direct and Formal: Ukrainians often use a direct and formal communication style, valuing clarity and precision in business discussions.
• Professionalism: Ukrainians value professionalism and respect in business interactions.

Timekeeping and Punctuality

• Punctuality: Punctuality is highly valued in business settings. Arrive on time for meetings as a sign of respect and professionalism.
• Networking: Building relationships through informal discussions and networking is common and important.

Value on Relationships

• Personal Connections: Building strong personal relationships is essential for successful business dealings. Trust and rapport are crucial.
• Hierarchical Structure: Business structures are often hierarchical. Respect for seniority and titles is important.

Business Meetings

• Small Talk: Meetings often start with informal conversation to build rapport.
• Networking Focus: Use meetings to strengthen relationships as well as discuss business matters.

By understanding and respecting these cultural nuances, you can foster better relationships and ensure successful business interactions in Ukraine. Hyperion360’s tailored solutions help you navigate these cultural intricacies with ease, enabling seamless integration and collaboration with your Ukrainian team.

Employment Agreements

In Ukraine, while not mandatory, written employment agreements are strongly recommended to outline key conditions clearly. Essential elements to include are:

• Remuneration: Specify salary and any additional compensation.
• Job Description: Outline roles, responsibilities, and expectations.
• Working Hours: Define standard working hours and any flexibility.
• Place of Work: Mention the primary workplace and any remote work possibilities.
• Probationary Period: State the duration and conditions of the probation.
• Contract Type: Indicate whether the contract is fixed-term or indefinite-term.
• Company Policies: Include relevant workplace policies and guidelines.
• Travel and Transfers: Detail the conditions and possibilities for travel or relocation.

Some terms are automatically recognized under Ukrainian law, such as:

• The minimum wage
• Annual leave entitlement and vacation bonus
• Social Security payment requirements
• Benefits provided by collective bargaining agreements

Probationary Periods in Ukraine

The maximum probationary period in Ukraine is three months. This allows employers to assess the suitability of the software engineer within a defined timeframe.

Ukraine Payroll Laws

Tax Due Date

Individual taxes in Ukraine are due by April 30, following the financial year from January 1 to December 31.

Payroll Cycle

The payroll cycle in Ukraine is generally monthly.

Working Hours

Standard working hours are typically eight hours per day and 40 hours per week.

Minimum Wage and Salaries

As of 2024, the minimum wage in Ukraine is UAH 7,000 per month.

Bonus Payments

It is common for employers in Ukraine to provide annual bonuses, often equivalent to one or two months’ salary, though it is not mandated by law.

Overtime

Overtime work is compensated at a rate of 150% to 200% of the regular hourly wage, depending on the collective bargaining agreement.

Taxes and Social Security in Ukraine

Tax Thresholds in Ukraine

In Ukraine, individuals are considered tax residents if they stay in the country for more than 183 days in a calendar year. Tax residents are subject to tax on their worldwide income.

As of 2024, the Ukrainian income tax rates are as follows:

• Income Tax: 18% flat rate
• Military/Defense Levy: 1.50%
• Combined Flat Rate: 19.50%

Corporate Tax Rate in Ukraine

As of 2024, the corporate tax rate in Ukraine is:

• General Corporate Income: 18%

Social Security Rates in Ukraine

In 2024, the social security rates for employees and employers are as follows:

Employer Payroll Contributions in Ukraine

Employers in Ukraine are responsible for several additional payroll contributions, which include:

• Unified Social Contributions: 22.00% of the employee’s salary (maximum monthly contribution 120,000 UAH)
• Total Employment Cost: 22.00%

Employee Payroll Contributions in Ukraine

Employees in Ukraine do not contribute to social security directly:

• Social Security: 0%
• Total Employee Cost: 0%

Health Insurance in Ukraine

Ukraine offers a public healthcare system, but many companies also provide additional private health insurance to access enhanced medical services and shorter wait times.

Pension in Ukraine

Ukraine’s pension system includes mandatory contributions from both employers and employees. Employers contribute 22% of the employee’s salary to the social security system.

Paid Time Off in Ukraine

Annual Paid Leave

Ukrainian labor law guarantees employees a minimum of 24 days of paid annual leave.

Parental and Maternity Leave

• Maternity Leave: 126 days of paid leave, with additional weeks available depending on the number of children born.
• Paternity Leave: Up to 14 days of paid leave.

Sick Leave

Employees are entitled to paid sick leave, with the length and pay rate depending on the collective bargaining agreement.

Regional and National Holidays

Ukraine observes 11 official public holidays established by law, with significant changes due to the 2022 Russian invasion:

Fixed Date Public Holidays:

• New Year’s Day (January 1)
• Orthodox Christmas Day (January 7)
• International Women’s Day (March 8)
• Orthodox Easter (variable)
• Labor Day (May 1)
• Victory Day (May 9)
• Constitution Day (June 28)
• Independence Day (August 24)

Religious Minorities Observances: Ukraine’s religious diversity includes various faith communities observing their traditional holidays:

Catholic Holidays:

• Catholic Christmas (December 25)
• Catholic Easter (varies - different date from Orthodox Easter)

Protestant Holidays:

• Reformation Day (October 31 - Protestant churches)
• Various denominational observances

Jewish Holidays:

• Rosh Hashanah (varies - Jewish New Year)
• Yom Kippur (varies - Day of Atonement)
• Passover (varies - Pesach)
• Hanukkah (varies - Festival of Lights)

Islamic Holidays:

• Eid al-Fitr (varies - End of Ramadan)
• Eid al-Adha (varies - Festival of Sacrifice)

Baha’i Holidays:

• Naw-Rúz (March 21 - Baha’i New Year)
• Ridván Festival (April 21-May 2 - Declaration of Bahá’u’lláh)
• Birth of the Báb (varies - Baha’i Faith)
• Birth of Bahá’u’lláh (varies - Baha’i Faith)

Buddhist and Hindu Holidays:

• Vesak (varies - Buddha’s Birthday)
• Diwali (varies - Festival of Lights)

Greek Catholic Holidays:

• Various observances following Eastern Catholic calendar

Note: While these holidays are not official public holidays, they are observed by Ukraine’s religious minority communities and may affect workforce availability in areas with significant populations of these faiths.

Employment Benefits in Ukraine

The State Social Insurance Fund (SSIF) administers Ukraine’s government benefits programs, including old-age pensions, disability benefits, and unemployment benefits. Contributions are collected from both employers and employees.

Termination and Notice Period in Ukraine

Employers must provide notice of termination as follows:

• Notice Period: Generally one month for employees with less than two years of service and three months for employees with over two years of service.

Upon termination without cause, the employer must provide severance pay based on the employee’s length of service and salary.

Understanding these aspects of employment benefits in Ukraine helps you navigate the complexities of hiring and managing staff. With Hyperion360, you can ensure compliance with local regulations while optimizing your global staffing strategy. Enhance your workforce with top Ukrainian talent today!

Work-from-Home Arrangements and Remote Work in Ukraine

In response to the growing trend of remote work, Ukraine has implemented regulations to support flexible working arrangements:

• Legal Framework: Ukrainian labor laws allow for remote work arrangements, provided that both the employer and employee agree to the terms. The Labor Code includes provisions for remote work.
• Work Environment: Employers are responsible for ensuring that remote employees have a suitable work environment and necessary equipment.
• Health and Safety: Employers must ensure that remote workers adhere to health and safety standards, including ergonomics and regular breaks.
• Communication: Clear communication channels and regular check-ins are essential for remote work arrangements.

With Hyperion360 you don’t have to worry about compliance with local regulations for your Ukrainian team.

How Hyperion360 Can Help You Hire Software Engineers in Ukraine

Navigating the complexities of hiring and managing software engineers in Ukraine can be challenging, but Hyperion360 simplifies the process with our comprehensive global staffing services. When you partner with Hyperion360, you pay us directly, and we take on all the legal and compliance risks, managing every aspect of HR, benefits, payroll, and local taxes.

Our Services Include:

• Assuming Legal and Compliance Risk: Hyperion360 hires the software engineers directly, eliminating the legal risks of complying with Ukrainian law for your company.
• Managing HR Functions: We handle all HR-related tasks, from recruitment and onboarding to managing paid leave and termination, ensuring a smooth and efficient process.
• Administering Benefits: Hyperion360 oversees employee benefits, including health insurance, retirement plans, and other statutory benefits, ensuring your workforce is well-supported and highly engaged.
• Efficient Payroll Management: Our services include managing payroll cycles, payroll taxes, and bonus payments seamlessly. We handle all payroll processing, ensuring accuracy and timely payments for your software engineers.
• Handling Local Taxes: The monthly fee you pay us for software engineers is inclusive of local payroll taxes, benefits, legal, HR, accounting, etc., so you can focus on your core business operations.

Benefits of Partnering with Hyperion360:

• Access to Top Talent: Leverage our network to access a pool of highly skilled software engineers in Ukraine, ensuring you hire the best talent for your needs.
• Streamlined Processes: Our integrated approach simplifies the hiring and management process, reducing administrative burdens and allowing you to focus on strategic business goals.
• Cost-Effective Solutions: By managing HR, benefits, payroll, and compliance, we help you save time and resources, offering a cost-effective solution for expanding your team in Ukraine.
• Comprehensive Support: From recruitment to ongoing management, Hyperion360 provides full support to ensure your Ukrainian workforce is effectively managed and aligned with your business objectives.

With Hyperion360, you can confidently expand your tech team in Ukraine, leveraging our expertise to overcome common pitfalls and maximize the benefits of hiring skilled software engineers in this dynamic market.

Ready to hire software engineers in Ukraine? Contact us to learn more about how Hyperion360 can support your global staffing needs.

Employment Law and Regulations

Working Hours and Overtime

• Standard Hours: 8 hours/day, 40 hours/week standard
• Overtime Pay: Double time for overtime
• Vacation: 24 days annually minimum

Leave Policies

• Maternity Leave: 126 days paid
• Paternity Leave: 14 days paid
• Termination Notice: 2 weeks to 2 months based on tenure

Tax System and Compliance

Tax Rates

• Income Tax: 18% flat rate
• Corporate Tax: 18%
• VAT/Sales Tax: 20%
• Social Security: 22% total (split between employee/employer)

Unique Country Facts

• Largest country entirely in Europe by land area
• Major IT outsourcing destination (pre-2022)
• Strong technical education system
• Birthplace of many programming languages and technologies
• Rich agricultural land (world’s 3rd largest grain exporter)
• Home to Chernobyl Exclusion Zone
• Kiev is one of Europe’s oldest cities (founded 482 AD)

Employment Law and Regulations

Working Hours and Overtime

• Standard Hours: 8 hours/day, 40 hours/week standard
• Overtime Pay: Double time for overtime
• Vacation: 24 days annually minimum

Leave Policies

• Maternity Leave: 126 days paid
• Paternity Leave: 14 days paid
• Termination Notice: 2 weeks to 2 months based on tenure

Tax System and Compliance

Tax Rates

• Income Tax: 18% flat rate
• Corporate Tax: 18%
• VAT/Sales Tax: 20%
• Social Security: 22% total (split between employee/employer)

Employment & Tax Insights

Employment & Tax Information

• Working Hours
• Overtime may be mandatory in the case of production disruptions due to accidents or to avoid production downtime.
• Vacation Days
• maternity leave at 100% of an employee’s average salary capped by a maximum base salary for Social Single Fee.
• maternity leave ends, mothers, fathers, and grandparents can take unpaid parental leave until the child turns 3 years old.

Additional Country Insights

• Ukraine has the largest IT outsourcing industry in Eastern Europe
• Kiev is home to over 1,000 IT companies
• The country produces 25% of the world’s sunflower oil
• Ukraine has a 99.8% literacy rate

💰 Realistic Salary Expectations vs US Costs

Ukraine Developer Salaries (Fully Burdened)

⚠️ Critical: True Payroll Burden
Payroll taxes and mandatory benefits add 70-80% to base salaries.

Details: Social security + military tax + vacation + 13th month + other benefits

🇺🇸 US Cost Comparison

US equivalent roles cost $100,000-$185,000 fully burdened (including $30,000+ overhead per engineer for benefits, taxes, office space, equipment, and administrative costs).

Reality Check: Even with high payroll burdens, international hiring still provides 40-60% cost savings compared to US fully burdened costs.

What Tech Leaders Say About Hiring Developers in Ukraine

“Ukrainian developers are incredibly skilled and reliable. Despite challenging circumstances our Kyiv team has continued to deliver exceptional work. Their technical expertise particularly in complex backend systems and DevOps has been invaluable to our growth.”

SVP of Engineering - SaaS Platform

“We’ve worked with Ukrainian developers for years and they’ve consistently exceeded expectations. They’re highly educated, experienced with modern technologies, and bring a level of dedication that’s remarkable. The quality to cost ratio is outstanding.”

CTO - SaaS Platform

“Our Ukrainian team is professional, skilled, and trustworthy. They handle mission critical systems with expertise and reliability. Communication is excellent and they integrate seamlessly with our distributed team.”

Director of Engineering - FinTech Platform

🚀 Ready to Start Hiring in Ukraine?

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Our Services

• Staff Augmentation - Scale your team with Ukrainian developers
• Team Extension - Extend your team with Ukrainian developers
• Contingency Recruiting - Find the perfect Ukrainian talent for permanent roles
• Contractor of Record (COR) - Hire Ukrainian contractors compliantly
• Employer of Record (EOR) - Employ Ukrainian developers without local entity

Helpful Resources

• Contact Us - Get started with your Ukraine development team
• About Hyperion360 - Learn more about our company and mission
• Case Studies - See how we’ve helped other companies succeed

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Disclaimer: While we make every effort to research and update our country guides regularly, some information may be incomplete, inaccurate, or out of date. This content is provided for general informational purposes only and should not be relied upon as a substitute for professional advice. If you notice any errors or omissions, please let us know.