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
Last reviewed:
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
Most independent Ukrainian developers prefer FOP, they personally pay 5% turnover tax (no employer-side cost). EOR adds 22% USC + compliance overhead but provides employee protections, paid leave, and clean payroll. Choose based on the candidate's preference and the role's permanence.
Working hours, leave entitlements, and termination procedures have temporary adjustments. Most importantly, employees subject to military mobilization retain their job and average earnings for the duration of service.
Flat 22% USC on gross, capped at 15× minimum wage per month. Above that cap, no further employer contribution applies.
Sources
Statutory rates and rules verified against the following authorities. We update this page when rates change.