Currency
Ukrainian Hryvnia (UAH)
EOR IN Ukraine
The easiest way to Hire and Manage in Ukraine
Swivelt will take care of payroll, benefits, taxes, compliance, making it easier than ever to expand and manage your team in Ukraine
GET STARTED
EXPAND YOUR BUSINESS IN Europe
A guide to employing and growing your team in Ukraine
Fast and compliant market entry. Hire top local talent without the need for a legal entity
Ukraine is both Europe’s second-largest country by area and one of its most populous. Ukraine’s labor market is governed by the Labour Code, though significant temporary adjustments are in place under Martial Law (enacted in 2022 and ongoing in 2026). These updates provide employers with more flexibility regarding working hours and termination during the emergency period. According to Remote.com, all employment relationships must be formalized through written contracts. As of January 1, 2026, the national minimum wage in Ukraine is UAH 8,647 per month, an increase from the 2025 rate of UAH 8,000 to keep pace with inflation.
Employer Contributions
Unified Social Contribution (USC): 22% (Calculated on the gross salary)
Maximum Base for USC: In 2026, the 22% contribution is capped at a monthly salary base of UAH 129,705 (15 times the minimum wage).
Total Employer Contribution: 22%
Employee Payroll Taxes
Personal Income Tax (PIT): 18%
Military Tax: 1.5% (A temporary levy to fund the defense sector)
Unified Social Contribution: 0% (Employees do not contribute to social security; it is 100% employer-paid)
Total Employee Contribution: 19.5%
Employee Income Tax Rates
Ukraine utilizes a flat-tax regime for employment income, which simplifies payroll administration for remote and local teams.
Flat PIT Rate: 18% (Applied to the entire gross taxable income).
Military Levy: 1.5% (Additional flat deduction).
Statutory Leave
Employees are entitled to a minimum of 24 calendar days of paid annual leave per year. Under current regulations, employers may limit leave to 24 days during the martial law period, even if the contract specifies more. Ukraine observes approximately 11 public holidays, though many are currently treated as regular working days under emergency labor laws to maintain economic stability.
Pregnancy and Maternity Leave
Mothers are entitled to 126 calendar days of paid maternity leave (70 days before birth and 56 days after). In cases of complicated births or multiple births, the postnatal period is extended to 70 days (140 days total). The state social insurance fund pays 100% of the average salary during this period.
Paternity Leave
Fathers (or other close relatives) are entitled to 14 calendar days of fully paid paternity leave following the birth of a child. This leave must be taken within three months of the birth and is paid for by the employer.
Work-Related Injury Leave
Sick Leave: The employer pays for the first 5 days of illness at a percentage of the salary (50%-100% depending on tenure). From the 6th day, the Social Insurance Fund takes over payment.
Childcare Leave: Either parent can take unpaid leave to care for a child until they reach the age of 3 (extendable to 6 in specific medical cases).
Marriage Leave: Up to 10 days of unpaid leave.
Termination Process
Termination must strictly follow the Labour Code. While martial law allows for easier dismissal in specific cases (e.g., destruction of premises), employers generally must provide “just cause.” Common grounds include redundancy, systematic failure to perform duties, or liquidation. Employees dismissed due to redundancy are entitled to severance pay equal to at least one month’s average salary.
Notice Period
Redundancy: Employers must provide 2 months’ written notice.
Resignation: Employees are generally required to provide 2 weeks’ notice.
Immediate Dismissal: Possible only for gross misconduct or serious violations of labor discipline, following a formal disciplinary process.
Probation Period
The standard probation period cannot exceed 3 months. For blue-collar workers, it is limited to 1 month, while for certain management positions, it may be extended to 6 months with union consent. During probation, an employer can terminate the contract with 3 days’ written notice if the employee is found unsuitable for the role.