What is a PEO?

A professional employer organization (PEO) works like a human resources (HR) and legal team all in one. They also act as a legal entity in various countries, which is how they enable business owners to hire and onboard international employees.

Essentially, PEOs work to support small business, startups, and even large corporations by taking on administrative tasks like payroll management, employee benefits management, and more. They also ensure that businesses remain compliant with local labor legislation in all countries at all times.

By assuming these time-consuming and tedious tasks, businesses have more time to focus on growing their actual business and what they need to do to reach higher levels of productivity and growth. PEOs also save businesses on the costs associated with hiring entire in-house teams of people to take on these roles.

By partnering with a PEO in, you can create an entire international team with employees working remotely from anywhere in the world, including Ukraine. Your PEO in Ukraine will act as your HR and legal team to ensure that you’re fulfilling the statutory requirements as an employer and that your employees are taken care of.

Are you wondering if partnering with a PEO is right for your business? Speak with a Skuad team member today. We’ll be happy to answer all your questions.

What are the benefits of using a PEO provider in Ukraine?

Working with a PEO in Ukraine can open up a lot of great opportunities for your business. Below, we’ll talk about the benefits that come with using PEO services in Ukraine and everywhere else for that matter.

Hire from the best of the Ukrainian and global talent pool

Finding the perfect candidates to fill open roles in a business looks much different today than it did yesterday. You’re no longer limited to your home city, state, or even country thanks to the rise in remote work and PEO services.

As we’ve mentioned, Ukraine is home to a highly-skilled, educated, and qualified workforce. However, the level of pay and opportunity doesn’t seem to match. By using a PEO in Ukraine, you can easily access this Ukrainian talent looking for better working opportunities to match their skill sets. 

Become a globally recognized employer

One way to get a competitive edge is to become globally recognized as an employer. What’s more, when qualified candidates throughout the world know your business and want to work for you, you know you’re successful.

With PEO services in Ukraine, you’ll have a partner that can put together the most comprehensive benefits packages to ensure that you not only attract this talent but retain it as well.

Prevent unnecessary spending

Without the help of a PEO in Ukraine, or anywhere else in the world, it can become incredibly expensive to hire internationally. It’s also very challenging. This is why even the most successful and largest corporations choose to partner with a PEO for their international needs — it’s much cheaper and quite frankly, painless. 

With a PEO, you’d have to hire your own human resources team as well as put a local legal team on retainer to ensure you’re taking the right steps and remaining compliant with the country’s labor laws.

Gain in-depth insights into new global markets

Ukraine has recently —and officially — become a part of the European Union (EU). This puts the country in a better position in regard to trade and investment. The EU is a single market is comprised of 27 member states and is known to fuel economic growth for those members.

By taking on Ukrainian employees, you can gain unique insight into the EU market and the surrounding marketing that will undoubtedly help you with expansion opportunities

Avoid setting up your own legal entity in Ukraine

The consequence of not using a PEO in Ukraine is having to form your own legal business entity within the country.

This means going through a significantly long incorporation process and paying a lot of unnecessary money on the associated fees. You would also have to put together an entire legal team to help you through the process. Not to mention, you would need to physically be there which means factoring in travel and accommodations.

Unless you plan on physically setting up a business in Ukraine, no expert would recommend forming a legal entity there. 

PEOs enable businesses like yours to avoid all of this because they already have established legal entities in multiple countries — and you can use them!

Become culturally aware

When taking on international hires, it’s critical to have an understanding of the cultural impacts from around the world. As a partner service, your PEO will make sure that you’re well-informed of the various cultural differences as they translate to doing business in Ukraine or elsewhere.

For instance, while Ukrainians take their work very seriously, they’re still a collectivist society. This means that they value teamwork and value loyalty over competition.

Find out how Skuad can keep you culturally aware and more by getting in touch with us today!

Remain compliant with local labor legislation

Each country will have its own legal requirements for what employees are entitled to and what employers are expected to provide. If you don’t comply with local legislation, then your business can and will end up incurring hefty fines. You may also get hit with a business ban.

Labor laws cover everything from payroll management to giving the correct amount of paid time off for sick days. There’s a lot to learn on this topic, but here’s an overview for now:

Payroll

• Ukrainian employees are paid in the Ukrainian hryvnia (₴ or грн).
• The minimum wage is ₴7000.00 per month.
• The standard workweek in Ukraine is 40 hours broken down into 5 8-hour days.
• Probationary periods may not last longer than 3 consecutive months. However, they aren’t necessarily mandatory.
• Bonuses are not mandatory but encouraged and typically given out based on work performance. 
• Notice for termination in Ukraine depends on the reason for dismissal, as does severance pay. However, employees are usually entitled to pay for unused vacation days upon termination.

Tax and employer contributions

Ukraine’s income tax rate for employees is set at 18% with an additional 1.5% military tax.

Ukraine’s corporate tax rate is also currently set at 18%, and employers must contribute 22% to social security.

Paid Leave

• Employees are entitled to unlimited sick days with a doctor’s note, however, employers are only responsible for paying for the first five days while social security covers the rest.
• Women are entitled to 126 days for maternity leave. (140 for multiple births or birth complications).
• Employees are entitled to at least 24 paid vacation days after working for an employer for 6 consecutive months. 

Want to learn more about how Skuad’s PEO services can help grow your business? Book a demo right now!

What does it cost to build a team in Ukraine?

When it comes to setting up an international business in Ukraine, you can expect to pay anywhere between $2,000 and $5,000 in the first year of incorporation. You’ll also have to factor in the second-year costs of incorporation plus a yearly registration fee.

That’s not including the costs of the legal team you’ll need to hire, travel, accommodations, and so on.

It’s much much cheaper to partner with a PEO in Ukraine. PEO service costs will vary based on the provider, but those costs will never even come remotely close to your incorporation expenses. What’s more, Skuad lets you get started for free with the option to cancel at any time.

You can also start hiring and onboarding your Ukrainian employees right away for as little as $19 per month. If you’re a large corporation looking for an Employer of Record (EOR) in Ukraine, we also offer custom prices. Just get in touch with our sales team to work out the details!

When you’re ready to start working with a professional employer organization in Ukraine or elsewhere in the world, Skuad is here to offer you the support you need. You can even book a demo to check out Skuad’s global PEO solutions today!