Let’s keep it short.
Ukraine developers are in high demand.
There are 3 main reasons why.
First of all, it’s because of a large pool of highly-qualified human resources.
A total number of IT experts in Ukraine equals to 160,000 and is actively growing.
700 higher educational establishments foster growth of the IT pool.
1,54 million students finished high school in the 2017-2018 academic year.
36,000 IT graduates were among them.
A pretty big pool of talents to choose from, isn’t it?
Secondary, it’s because of cost-effectiveness.
My analysis of the Top IT Outsourcing Companies 2019 according to Clutch shows that the average hourly rate of the Ukrainian software agencies falls into the range of 25-49 USD.
This is actually what 65% of all Ukrainian companies charge. Compared to the US contractor rates who charge about 100 USD /hr for and US agency rates which run 150 to 250 USD an hour, outsourcing to Ukraine looks quite attractive, doesn’t it?
Thirdly, it’s because of the western mindset.
Ukrainian IT agencies deliver their services to companies from all over the world.
The dominant locations are USA, Europe, UK, Australia. In order to stay competitive on the global market, they have to deliver their services at a decent level. This includes not only ability to execute properly but also to understand and speak a common language with their clients. Based on the client feedback, Ukrainians cope with this task brilliantly.
But what do they want in return for their service? How much would they charge and what makes an average developer salary in Ukraine?
Let’s dive deeper and check this out.
Keep on reading as we are going to talk about:
→ Average salary vs average software engineer salary in Ukraine
→ Factors that influence developer salaries (seniority, location, focus)
→ Software developer salary in Ukraine
→ Top tools to help you independently study the salary market
→ How much taxes they pay in Ukraine
Before telling what makes an average developer salary in Ukraine, I’ll give you an overview of the minimum pay and average salary in Ukraine for you could better understand the environment.
The official minimum pay as of 2019 equals to 4,173 UAH. This is 166,96 USD, and slightly more than 150 EU.
No matter when you will be reading this article, you can always check an up-to-date information on the website of the Ministry of Finance of Ukraine.
Even though the costs of living in Ukraine compared to the US or European countries are low, with the minimum pay one can hardly survive in this contry.
The average salary in Ukraine in July 2019 was 10,971 UAH. The average salary in Ukraine in US dollars was about 440, this is around 400 EU. The Ministry of Finance of Ukraine keeps constantly updating this figure on their website.
Both minimum pay and average salary in Ukraine keep growing over the years. But this is still not enough for a good living. Just to give you a comparison, the rent of the renovated apartment in Kyiv starts at about 10,000 UAH.
You can check it on your own on this website.
Developer salaries in Ukraine are very different from what people from other industries earn. They are significantly higher. An average software developer salary in Ukraine is about 1,500 — 2,500 USD. An annual software developer salary in Ukraine would be about 18,000 — 30,000 USD.
Further in this article we will figure out how salaries of developers differ based on the programming language they use for coding.
There are 3 main factors that influence the developer pay. You should know about them as, otherwise, your idea of salaries will be twisted. These are:
Let’s take a closer look at each one of them.
1. Skills and specialization
Just like in every other industry, the developer salary depends first and foremost on their skillset and the programming language they use for coding. There is great difference between the monthly wage of the RoR and PHP developers. See yourself.
Seniority doesn’t always mean years in the industry. A 30 years old developer doesn’t necessarily mean a Senior developer just like a 23 years old one doesn’t always mean Junior. But all the same, a level of seniority can roughly be defined by the years of experience and may influence the developers salaries.
Developer salary varies based on their seniority level. A junior developer salary may be 2 or even more times less.
There are 5 major IT destinations in Ukraine. These are Kyiv, Dnipro, Kharkiv, Lviv, Odessa. The salaries differ among these and other locations. Salaries in Kyiv are considered to be the highest ones. Sometimes the difference can be dramatical. Let’s compare.
On the screen below you can see a middle software engineer salary living in Kyiv.
Below is the average salary of the same level of developer living somewhere else.
First of all, let’s take a look at salaries of all positions. An anonymous survey has been conducted by the DOU portal questioning 10,379 participants about their salaries. Below you can see the results of the survey for the period of December 2018 to January 2019.
Now, let’s narrow it down and analyze the average developer salaries for the period of June-July 2019.
For this, we will be using 2 great tools which I’d highly recommend you to use for your own further research and comparison:
Java has been on the market for almost 25 years. Obviously, it has quite a big pool of developers to choose from. The salaries of Java developers in Ukraine are more or less the same as salaries of other back-end developers.
PHP is a programming language for the web back-end development. This is one of the most popular technologies for the server-side web development. The PHP community is quite big, the language is considered to be pretty easy in learning, and this is why its entering barrier is low. There is a challenge for you as the bigger the pool is, the more difficult it can be to find a really great talent among the others. PHP developers salaries are considered to be the average compared to developers of other web back-end programming languages like RoR, for instance. It’s worth paying your attention to a big difference between a Junior PHP developer salary and a Senior PHP developer salary — almost doubled.
Ruby on Rails is considered to be one of the most up-to-date web back-end technologies that allows to shorten the development time with no damage to product quality, release projects faster, and save on budget. An entry barrier to the RoR community is quite high. This means that the pool of RoR developers is much less compared to that of PHP. However taking into account the entry barrier, the density of talented developers is high. RoR developer salaries are considered to be one of the highest among other web back-end developers. Thusly, an average Senior Ruby developer salary in Kyiv would be about 3900 USD.
Python lies in place with RoR. The main difference between these languages lies in the field of application. Python is more commonly used in complicated scientific projects such as deep learning or neural networks. Python community counts less number of developers, however its community is pretty active and has about the same salary expectations as RoR developers. Thusly, an average Senior Python developer salary in Kyiv would be about 4000 USD.
Golang is an open-source programming language created by Google engineers, to serve the corporation specific needs. However, it turned out that Go went outside its original scope and it began to be applied outside the corporation. The Golang community is not that big and the data for analysis of salaries is not that wide. However, you can still see that Golang developers are pretty expensive. In some regions of Ukraine, a Senior developer salary coding in Golang can reach 6000 USD per month.
.NET is a framework of C#, an old programming language which was released at the end of 1990th. Both language and framework are pretty difficult to master and have high entry barriers. This means that you would need to work hard in order to find a super talent with tons of experience. These people are pretty expensive on the market and typically they are engaged in enterprise projects. Thusly, a Middle .Net developer salary in Ukraine can be about 2,000 USD.
Swift is a programming language for macOS, iOS, watchOS, tvOS and beyond. Some recruiters state that it may be quite a challenge to find skilled Swift developers on the Ukrainian market fast because of the Ukrainian Swift community being pretty small. Still Swift developers are in a high demand and have pretty high salary expectations.
Kotlin is programming language for the development of native Android apps. It is a slightly higher level language than Java, allowing for some things that have been learned since. To keep it simple, it allows to perform more work with less code and thusly it’s considered to be better than Java. Consequently, salary expectations of Kotlin developers are slightly higher than those of Java coders.
Speaking about developer salaries in Ukraine, I thought you might be interested to know how much taxes they pay. Just like any other European country, Ukraine has pretty high income and social taxes which sum up into about 40%.
However, there is a special taxation system for self-employed — 5%.
Yes, you’ve heard this right. It’s just 5%.
Most of the developers work as contractors not as employees.
If a developer salary equals to let’s say 3,000 USD, they will pay a flat 5% tax rate equaling to 150 USD.
I hope this article helped you better understand the Ukrainian IT market. There are still a lot of questions to be addressed and I’ve prepared a lot of useful pieces of content for you to help you make your experience of dealing with Ukrainian IT companies smooth and transparent. Keep up watching for the new great content to come soon.