TL;DR, Hiring in Ukraine
- Fully-loaded employer cost: ~22% on top of gross (Unified Social Tax)
- USC is capped at 15× minimum wage per month
- Martial law in effect, special rules around mobilization, remote work
- Most tech workers operate as FOP (sole proprietor) at 5% flat tax
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Statutory employer costs in Ukraine
In Ukraine, employers pay a Unified Social Contribution (USC) of 22% on gross salary, capped at 15× the monthly minimum wage. Employees additionally pay 18% income tax and 1.5% military levy from gross. Many Ukrainian tech professionals operate as FOP (Fizichna Osoba Pidpriyemets, sole proprietor) under the simplified 5% tax regime, which is contractor-style rather than EOR, confirm engagement model before quoting.
| Contribution | Employer rate | Notes |
|---|---|---|
| Unified Social Contribution (USC/ESV) | 22.0% | Capped at 15× minimum wage (~UAH 120,000 in 2024) |
| Military Levy | 1.5% | Employee-side withholding; war-time |
Mandatory employee benefits
Beyond statutory contributions, Ukraine law requires the following benefits the employer must fund.
- Annual leave
- 24 calendar days minimum.
- Sick leave
- First 5 days at employer expense; Social Insurance Fund thereafter.
- Mobilization protections
- Job and average earnings preserved during military service under martial law.
Termination, notice and severance
Probation
Up to 3 months (1 month for workers).
Notice period
2 months for redundancy; 2 weeks for employee resignation.
Severance
1 month average salary for redundancy; up to 3 months in specific cases.
Common compliance pitfalls
- FOP vs employment, many engagements operate as B2B with FOP at 5% flat tax; reclassification risk is real.
- Martial law mobilization may suspend the employment contract, plan for replacement headcount.
- International sanctions screening for Russian-language candidates currently abroad.
Frequently asked questions
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.