Minimum Salary Level Increased
January 30, 2020
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At a Glance
- Effective January 1, 2020, the minimum monthly salary for foreign workers in Ukraine increased to UAH 47,230, up 13.2 percent from 2019.
- Employers are advised to review foreign workers’ salaries to ensure compliance with the new rule.
The situation
Effective January 1, 2020, the minimum wage in Ukraine increased to UAH 4,723, up 13.2 percent from 2019. Salary requirements for foreign workers are affected as follows:
| Category | Prior salary requirement | Current salary requirement |
Standard |
UAH 41,730 |
UAH 47,230 (10 times the minimum wage) |
Highly-paid professionals |
UAH 208,650 |
UAH 236,150 (50 times the minimum wage) |
Unaffected categories |
The following categories remain exempt from this threshold:
|
The exchange rate at the time of publication of this alert is 1 UAH to 0.04 USD.
A closer look
- Existing employees. Employers of foreign nationals currently under a work permit must increase foreign nationals’ salaries to comply with the new rule.
- Initial and renewal applications. Employers of foreign nationals seeking to obtain or renew a work permit on or after January 1, 2020 must increase foreign nationals’ salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be refused.
- Pending applications. Employers of foreign nationals with pending work permit applications as of January 1, 2020 must increase foreign nationals’ minimum salaries to comply with the new rule. Immigration applications that do not meet the minimum salary will be rejected.
Reminders on other requirements
- Benefits and allowances. As before, benefits and allowances cannot be included in the minimum salary calculation.
- Currency. As before, employers are required to guarantee the salary in UAH regardless of payroll location and/or exchange rate fluctuations.
Background
A separate salary level for foreign workers was introduced in September 2017. The government proposed halving this in October 2018, but this initiative has not yet reached the Ukrainian parliament. The current salary level increase is in line with the 12 percent increase for 2019.
Looking ahead
Ukraine announced an in-country visa process for visa-exempt nationals in August 2019, but this is not yet in effect. In light of projected labor force declines, it is not yet clear how Ukrainian authorities seek to draw additional foreign talent.
This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].
