Labor cost plays an important role while choosing an outsourcing destination. And while it depends on many factors, the average salary in a country is a major determinant.
So wondering how much you should pay a Ukrainian employee?
In 2023, the average salary in Ukraine is around 23,000 UAH (USD 625) per month.
In this article, we’ll cover everything you need to know about the average salary in Ukraine. We’ll also provide a salary comparison based on various aspects and the four key benefits of outsourcing to Ukraine.
We’ll then highlight the top four industries suitable for outsourcing to Ukraine.
We acknowledge that as of this time there is an ongoing conflict in Ukraine.
We stand in solidarity with the people of Ukraine and support the resolution of the conflict. Explore these resources to discover ways you can help.
Let’s get started.
What is the average salary in Ukraine?
The average monthly salary in a nation depends on factors like education, level of experience, local cost of living, and skill set. It also depends on the industry you’re working in.
Taking these factors into consideration, a person working in Ukraine annually earns around 276,000 UAH (Ukrainian Hryvnia). Based on the exchange rate in April 2023, this amounts to USD 7,500 (US Dollars) annually.
Additionally, monthly salaries range from 5,810 UAH to 102,000 UAH.
And if you’re wondering about average wages per city, Kiev has the highest average wage in the country — at around 25,000 UAH (USD 679/month).
Let’s now look at the various aspects of the average salary in Ukraine.
1. Median salary
The median salary in Ukraine is 19,600 UAH ($533/month).
What’s the median salary?
Median salary represents the middle salary value. In simpler words, it means that half of the Ukrainian population is earning less than the median salary (USD 533), and the remaining half is earning more than USD 533/month.
2. Minimum wage
The minimum amount of remuneration that an employer is required to pay wage earners during a given period is the minimum wage or salary.
The employer or the employee can’t reduce this set threshold.
The minimum wage in Ukraine is 34 UAH per hour (USD 0.92/hour).
Ukraine has one of the lowest minimum wages in Europe. Most countries near Ukraine have a higher minimum wage, especially those part of the European Union (EU).
3. Monthly salary data for different professions
Let’s see the average salary of a few popular job roles:
| Profession | Average Monthly Salary |
| Accountant | 16,100 UAH |
| Bookkeeper | 11,000 UAH |
| Chartered Accountant | 20,500 UAH |
| Administrative Assistant | 12,100 UAH |
| Travel Agent | 14,200 UAH |
| Creative Director | 23,700 UAH |
| Graphic Designer | 13,000 UAH |
| Business Analyst | 27,800 UAH |
| Business Development Manager | 37,600 UAH |
| Project Manager | 29,500 UAH |
| Customer Service Manager | 31,400 UAH |
| Call Center Representative | 8,420 UAH |
| Sales Manager | 39,200 UAH |
| Legal Assistant | 12,400 UAH |
| Software Developer Salary | 22,900 UAH |
| Database Administrator | 22,800 UAH |
| Civil Engineer | 21,500 UAH |
| Bank Branch Manager | 40,800 UAH |
| Architect | 27,600 UAH |
| Attorney | 45,000 UAH |
4. Annual average salary increase
Usually, employees in Ukraine get an increment of around 8% of their annual salary.
They get an increase in their monthly salary every 18 months compared to the world’s average salary increment rate of 3% every 16 months.
A. Average annual increase by industry
Let’s see the average Ukrainian salary increment rate across different working industries (as of 2022):
| Industry | Average Annual Increment |
| Banking | 1% |
| Energy | 2% |
| Information Technology | 3% |
| Healthcare | 4% |
| Travel | 5% |
| Construction | 6% |
| Education | 7% |
B. Average annual increase by experience level
Here’s the average annual increment range based on the level of experience:
| Experience Level | Average Annual Increment |
| Junior Level | 3-5% |
| Mid Level | 6-9% |
| Senior Level | 10-15% |
| Top Management | 15-20% |
Source: salaryexplorer.com
Note: The figures provided above are averages of numbers and should only be referred to as general guidelines. Increments and salaries will vary from person to person and depend on many factors.
Salary comparison by education, experience, city
We’ll now look at how the average salary varies based on the following factors:
1. Education
Generally, the more qualified a candidate is, the higher their salary.
A salaryexplorer.com salary survey found that:
- Certificate or diploma holders earn 17% more than people who are at the high school level.
- Workers with a Bachelor’s degree are paid 24% more than diploma holders.
- Employees who hold a Master’s degree earn 29% more than a Bachelor’s degree holder.
- Ph.D. holders usually make 23% more than Master’s degree holders on average.
Note: Changes in salary based on education vary across locations and also depend on the profession.
2. Experience
Professional experience has a positive relationship with a Ukrainian citizen’s salary.
Based on surveys by salaryexplorer.com, employees with two to five years of experience earn 32% more than freshers or juniors across all industries.
And professionals with 5+ years of experience are paid 36% more than employees with lesser years of experience. Similarly, employees with 10+ years of experience receive an increment of 21%, and those with 15+ get a 14% increase.
Note: The figures mentioned above are presented as guidelines only. To get a more accurate salary report, you should look at one job title at a time.
3. City
Let’s take a look at how the average salary varies across Ukrainian cities:
A. Kiev
Kiev, as known as Kyiv, is the capital and most populous city of Ukraine. It also has the highest English language literacy among all the other regions.
A person working in Kiev earns around 25,000 UAH (USD 679/month).
Typically, the average monthly wage ranges from a minimum of 6,320 UAH (lowest average) to a maximum of 111,000 UAH. And the median monthly salary in Kiev is about 21,700 UAH (USD 590/month).
Additionally, some of the highest paying job positions in Kiev include:
- Financial Manager: 48,500 UAH/month.
- Bank Branch Manager: 46,400 UAH/month.
- Dentist: 61,600 UAH/month.
- Attorney: 52,300 UAH/month.
- IT Manager: 43,200 UAH/month.
B. Lviv
Lviv is the largest city in western Ukraine.
The average salary in Lviv is around 23,800 UAH (USD 647/month), and the salary ranges from 6,010 UAH to 106,000 UAH.
Some other important statistics related to the average salary in Lviv:
- The median salary is 21,900 UAH per month.
- Employees with 2-5 years of experience earn 32% more than freshers or juniors.
- Bachelor’s degree holders make 24% more than diploma holders.
Why should you outsource to Ukraine?
Here are a few benefits of outsourcing to Ukraine:
1. Profitable rates
One of the biggest reasons to outsource is cost-efficiency.
The average hourly wage of a Ukrainian professional is 130 UAH (USD 3.53/hour).
These rates are a lot cheaper in comparison with other popular European outsourcing destinations like Poland and Romania — where the average wage is around USD 12/hour.
2. Skilled talent pool
Ukraine is one of the most literate countries in the world and is known for its effective public education system.
Additionally, Ukraine is home to 6% of the world’s certified professionals in STEM (Science, Technology, Engineering, and Mathematics).
3. Similar time zones to other European countries
Ukraine is just an hour ahead of most European countries and seven hours ahead of the US.
How is this beneficial?
In most cases, you’ll have overlapping business hours with your outsourced team. This simply translates to unobstructed communication and project flow.
And as the flight time from European countries like the UK, Germany, and Belarus are shorter – you can easily travel in case of a work emergency. Moreover, citizens of the US, Canada, and all EU countries can stay up to 90 days without a visa for business purposes.
This makes it a lot more convenient in comparison with other popular outsourcing destinations like India or the Philippines.
4. English proficiency
Though English is not the official language of Ukraine, most working professionals have strong English skills as it’s usually a compulsory subject in schools.
Additionally, there are many affordable opportunities available for an outsourced team to improve their English proficiency. Rest assured, you’ll face no problems in communicating effectively with your outsourced Ukrainian teams.
As you can clearly see, outsourcing to Ukraine has many advantages.
So what are the common outsourced industries in Ukraine?
Top 4 industries to outsource to Ukraine
Let’s check out the leading industries that outsource their tasks to Ukraine:
1. Software development
Generally, the software development industry in Ukraine focuses on the following areas:
- Software engineering.
- QA testing.
- Testing automation.
- Research and development.
- Application support.
- Architecture.
The expertise of Ukrainian software developers in these fields attracts a lot of foreign entrepreneurs.
IBM, Oracle, SAP, and Adobe are a few prominent IT companies that outsource to Ukraine.
2. Automotive
The automotive industry has undergone some great changes in the past decade. As a result, IoT and embedded solutions have now become a natural part of car connectivity and the automotive industry.
Ukrainian developers are experienced in vehicle technologies. The local tech talent is actively involved in producing automotive innovations like computer system vision and AR, autonomous driving, blockchain, and more.
Intellias, Infopulse, and Gionix are some of the best outsourcing companies for the automotive industry.
3. Accounting
Here’s a list of accounting services that your company can outsource to Ukraine:
- Financial and tax accounting.
- Tax consulting.
- Payroll and HR services.
- Administration of banking transactions.
- Control of the internal accounting department.
By outsourcing accounting to Ukraine, you can easily benefit from local expertise and international management at an affordable price.
4. Telecommunications
Telecom is another significant industry that considers Ukraine as its strategic outsourcing location.
Ukrainian engineers specialize in telecommunication support systems services like BSS and OSS. They’re also proficient in AI-chatbot development that can easily improve user experience in the telecom industry.
Nokia, Ericsson, Samsung, and Vodafone are some well-known companies that outsource their tasks to Ukraine.
Wrap up
Ukraine is one of the leading outsourcing destinations in Eastern Europe.
Along with a highly educated population, lower labor costs than developed countries, and no language barrier, you also have the benefit of traveling without a visa.
If you feel outsourcing to Ukraine is a suitable move for your business, use the information provided above to understand the salaries you’ll have to pay for an outsourced team.
Andy is a technology & marketing leader who has delivered award-winning and world-first experiences.