Ukraine: Education, Personnel and Employment
Ukraine retains the legacy of a rigorous and scientific-oriented Soviet education system. It was the second-most important R&D centre for defense and industrial engineering in the USSR. Although the Ukrainian government spends 20% of its budget – some 5% of GDP – on education, it is not enough given that the overall size of GDP is still quite small. Education is compulsory for everyone between ages 6-15. The country has 10 universities and a large number of specialized academies.
Ukraine is noted for its human resources, whom investors describe as intelligent and industrious – not to mention well educated and highly skilled. For example, locals are highly motivated, affording opportunities even in fields such as aerospace, biology and nanotechnology. Labor is cheap, with salaries around one-forth of Central European levels. There is high unemployment, particularly in the west, as well as potentially in numerous mono-industrial towns if and when they are forced to restructure.
Nevertheless, business executives warn that it can be difficult to find top level staff. Professionals able to represent global firms tend to want high salaries, and be already in good positions. Thus, for all the skilled labour, many local companies which foreign investors want to buy need great improvement from the technical know-how side. Recruiting market is maturing very fast.
Minimum wage is currently UAH 400.- per month. 12 (with an optional premium) monthly salaries are paid in Ukraine per year. Income tax for personnel is flat at 15%. The social security contribution (social security payroll tax cap of UAH 7.875.-) cost for employer constitutes 37.4% of wage, while only 3,5% for the employee, with 0.66 up to 13.8% shared between them as compensation for professional illnesses.
