Employer of Record in Ukraine

Hiring Employees in Ukraine With An EOR

Hiring in Ukraine can seem complex – but with the right facts and tools, it’s simple. This guide walks you through the local job market, shows how Employer of Record services guarantee compliance, and highlights the key labor laws you need to know.

Hiring Employees In Ukraine
Employer Of Record In Ukraine

Capital City

Kyiv

Currency

Hryvnia

 (

)

Timezone

GMT +2

Payroll Frequency

semi-monthly

Tax Year

1 January - 31 December

Employer Tax

22%

Languages

Ukrainian

Jesse Weisz

R&D Analyst

Last Updated

September 12, 2025

In This Guide

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Employment Guide For Hiring in Ukraine

Looking to grow your team in Ukraine? It’s a great way to tap into new talent and fresh markets – but hiring across borders comes with its own set of hurdles. From understanding local labor laws to managing payroll and staying compliant, it gets complex if you don’t have local HR support.

Playroll’s full-service Employer of Record platform handles all the heavy lifting so you can hire confidently in Ukraine without setting up a local entity. In this guide, we’ll break down everything you need to know about hiring employees in Ukraine, including employment contracts, payroll, statutory benefits, and compliance with local labor laws.

What to Know Before Hiring employees in Ukraine

Minimum Wage: The statutory minimum wage in Ukraine is UAH 8,000 per month. This rate applies to all workers, and the government periodically reviews and adjusts the wage.

Working Hours: In Ukraine, the standard work week consists of 40 hours spread across 5 days.

Labor Laws: An Employer of Record acts as the legal employer for workers in Ukraine, taking on key responsibilities to ensure compliance with local labor laws and regulations. 

Payroll Taxes: In Ukraine, employers are required to make payroll contributions that fund social security, health care, and other statutory employee benefits.

Average Salary: The average salary in Ukraine is approximately UAH 26,499 per month.

How to Hire Employees In Ukraine

Hiring in Ukraine for the first time can be overwhelming, especially when navigating unfamiliar employment laws. So, how do you get started? There are three main ways to hire in Ukraine: Set up your own legal entity, hire independent contractors, or use an EOR service to handle payroll and global HR for you. Below, we’ll walk you through each option in detail.

1. Set Up A Local Entity In Ukraine

Setting up a local entity in Ukraine is the traditional route for businesses that want to build a long-term presence in a new market. It allows for direct hiring, fine control over operations, and compliance with local labor laws.

That said, the process is rarely simple. It involves navigating complex legal structures, extensive registration procedures, ongoing payroll administration, and local tax obligations. Beyond the administrative burden, the costs of incorporation, maintaining local offices, and hiring compliance experts can quickly add up.

For companies operating with slim margins or testing new markets, these financial and operational commitments often make setting up a local entity an unfeasible option compared to more flexible and cost-effective solutions.

2. Use An Employer Of Record In Ukraine

An Employer of Record (EOR) acts as the legal employer for workers in Ukraine, taking care of compliance, payroll, and local labor regulations. This makes it fast and straightforward to bring on talent without the cost and complexity of setting up a local entity. For businesses looking to test new markets or scale teams across borders with confidence, EORs offer a flexible, low-risk solution.

The Employer of Record in Ukraine is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Ukraine's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Ukraine's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Ukraine's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Ukraine's labor laws, such as health insurance, pension contributions, and statutory leave.

3. Hire Independent Contractors In Ukraine

Hiring independent contractors has boomed in popularity because of the cost savings and flexibility they offer. It can be a great option if you require niche skills or short-term project support. Contractors allow businesses to access specialized skills quickly, without the time and cost of setting up a local entity.

However, it’s important to know the limits of this model: contractors are not a substitute for full-time employees. Relying on them for ongoing, long-term roles can create serious compliance risks, including employee misclassification, which can lead to fines, back taxes, and reputational damage.

Playroll’s contractor management solutions make it simple to compliantly engage, onboard, and pay contractors around the world. We provide clear visibility into agreements, streamline payments, and reduce compliance risks – so you can focus on getting the work done. And when you’re ready to take the next step, we can help seamlessly convert contractors into full-time employees through our global Employer of Record service.

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Labor Laws in Ukraine

Businesses can only operate smoothly in Ukraine if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Ukraine below, to avoid any compliance issues.

Employment Contract Requirements

When hiring in Ukraine, written employment contracts in Ukrainian are mandatory for both fixed and indefinite terms. The labour law distinguishes between employment agreements, commonly used, and more flexible employment contracts, limited by law. The only formal requirement in employment agreements is specifying probation periods.

Onboarding Process

We can help you get a new employee started in Ukraine quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations.

For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Probation Period in Ukraine

The probation period for an employee is determined by their job role. Non-qualified employees have a probation period of 1 month, while specialists and managers undergo a 3-month probation period.

Average Salary In Ukraine

As of July 2025, the average salary in Ukraine is approximately UAH 26,499 per month. Salaries vary significantly by experience, industry, and region. IT and telecommunications professionals earn the highest (around UAH 67,000 monthly), while those in service or education sectors typically earn much less. Regionally, Kyiv leads with average salaries over UAH 40,000, whereas smaller regions like Chernivtsi report averages under UAH 20,000. Economically, Ukraine continues to face high inflation (about 12–13 %) and elevated unemployment (around 11.6 %), which puts pressure on real wage growth despite nominal increases.

Not sure what to pay in Ukraine? Compare fair, local salaries with our free benchmarking tool.
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Working Hours in Ukraine

In Ukraine, the standard work week consists of 40 hours spread across 5 days. Employees are generally expected to work eight hours each day

Overtime work is compensated at a rate of 200% of the employee's regular hourly wage. This applies to overtime on weekdays, weekends, and public holidays. Employers must maintain accurate records of overtime hours worked to ensure compliance with these regulations.

Minimum Wage in Ukraine

How an Employer of Record Helps You Hire in Ukraine

Setting up a local legal entity in Ukraine can be time-consuming and expensive. It often involves complex paperwork, local representation, banking, registrations, and ongoing tax filings, which isn't cost-effective if you're simply looking to hire a few employees or test the market. An Employer of Record removes these barriers entirely. Instead of spending months establishing a presence, an EOR lets you hire and onboard employees within days while staying fully compliant.

This enables faster market entry and greater agility. Whether you’re launching a pilot program, supporting a regional client, or adding specialized talent, you don't need to commit to long-term infrastructure to explore new business opportunities. The EOR handles local employment logistics while you retain day-to-day oversight of your hires. This model lets you scale up or down based on business needs, giving you more flexibility with less overhead and risk.

Payroll Management in Ukraine

Fiscal Year in Ukraine

1 January - 31 December is the 12-month accounting period that businesses in Ukraine use for financial and tax reporting purposes.

Payroll Cycle in Ukraine

The payroll cycle in Ukraine is bi-weekly, with employees being paid twice a month between the 15th and 20th of each month and the 31st and 7th of the following month.

Minimum Wage in Ukraine

As of January 1, 2025, Ukraine's minimum wage is set at UAH 8,000 per month. This rate applies to all workers, and the government periodically reviews and adjusts the wage.

Bonus Payments in Ukraine

Ukranian law does not include provisions for 13th salaries.

Employment Taxes in Ukraine

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 22% on top of the employee salary in Ukraine.

Tax TypeTax Rate
Compulsory state social insurance22%
One-time compulsory fee for processing a physical (wet ink) employment agreement2,919.39 UAH (80 USD)

Employee Payroll Tax Contributions

In Ukraine, the typical estimation for employee payroll contributions cost is around 2.1%.

Tax TypeTax Rate
Social Security0.6%
Military/Defense Levy1.5%

Individual Income Tax Contributions

In Ukraine, the individual income tax rate is a flat 18%, calculated uniformly across all income levels.

Income BracketTax Rate
0 And above18%

Pension in Ukraine

In Ukraine, the old-age pension is granted to men at 60 with 35 years of coverage, and women at 60 with 30 years of coverage. Hero-mothers with 5 or more children can retire at 50, along with specific caregiving roles or Chernobyl accident contributors. Partial or deferred pensions are also possible under specific conditions.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Ukraine tailored to your needs.

Employment Taxes and payroll in Ukraine

Navigating payroll taxes in Ukraine requires understanding various tax obligations, including Personal Income Tax, Military Tax, Unified Social Contribution, and Single Tax for Individual Entrepreneurs. Employers must ensure timely submissions and accurate calculations to maintain compliance.

Using payroll management software, such as Playroll, can help employers consolidate payroll data and stay compliant in Ukraine.

How an EOR Helps You Run Payroll in Ukraine

One of the biggest risks in global hiring is payroll mismanagement. In Ukraine, even small errors in tax reporting or social contribution payments can trigger audits, fines, or reputational damage. For companies without in-country expertise, the risk isn’t worth taking. An Employer of Record removes this burden by owning the legal responsibility of payroll, executing every step with built-in compliance.

Key Ways an EOR Supports Payroll in Ukraine:

  • Mitigates Compliance Risk: Oversees all legal obligations for payroll, tax filings, and recordkeeping.
  • Local Regulatory Expertise: Interprets and applies Ukraine’s latest labor and tax changes in real time.
  • Free Processing: Reduces mistakes in wage calculations and reporting through built
  • Payroll Record Management: Maintains compliant payroll audit trails and documentation for each employee.

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Work Permits & Visas in Ukraine

In Ukraine, work permits and visas are essential for employers hiring foreign workers. The process involves submitting applications, meeting salary thresholds, and providing documentation such as proof of qualifications and a clean criminal record. Employers must also pay government fees based on the permit duration.

The key visa types include the Temporary Residence for Work Visa, Skilled Workers Visa, and Seasonal Workers Visa, each designed for specific employment categories and durations. Employers must comply with Ukrainian labor laws when sponsoring foreign employees to ensure smooth onboarding and avoid legal complications.

Annual Leave & Company Policies In Ukraine

Mandatory Leave Entitlement in Ukraine

The annual leave entitlement in Ukraine is 24 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Ukraine

The following are the 10 recognised holidays in Ukraine in a calendar year:

HolidayDate
New Year Holiday1 January
International Womens Day8 March
Easter SundayApril, day changes yearly
Labor Day1 May
Victory Day8 May
Pentecost/Orthodox Whit MondayJune, day changes yearly
Constitution Day28 June
Ukrainian Statehood Day15 July
Independence Day24 August
Catholic Christmas Day25 December

Paid Time Off in Ukraine

Following six months of continuous employment, employees in Ukraine are entitled to a minimum of 24 days of paid annual leave. This allowance may be extended for minors and those in challenging or hazardous occupations. Additionally, unused leave days can be accumulated for later use.

Maternity Leave In Ukraine

In Ukraine, a pregnant employee is entitled to 126 days of paid maternity leave, with 70 days taken before the expected due date and 56 days after childbirth. The Social Insurance Fund provides compensation for maternity leave at 100% of the employee's average salary. In cases of complications during childbirth or multiple births, maternity leave can be extended to 140 calendar days. Women affected by the Chernobyl disaster are entitled to 180 calendar days (90 days before and 90 days after childbirth).

Paternity Leave In Ukraine

Paternity leave in Ukraine allows fathers to take up to 14 paid calendar days leave within the first three months after the birth of their child.

Sick Leave In Ukraine

In Ukraine, employees are entitled to up to 4 months of paid sick leave. During this period, the employer covers the first 5 days, and reimbursement is obtained from the Social Insurance Fund. The compensation from the Social Insurance Fund varies based on the employee's length of service:

  • Less than 6 months of service: based on minimum wage
  • 0-3 years of service: 50% of their average wage
  • 3-5 years of service: 60% of their average wage
  • 5-8 years of service: 70% of their average wage
  • More than 8 years of service: 100% of their average wage

Parental Leave In Ukraine

In Ukraine, mothers, fathers, and grandparents have the right to unpaid parental leave, which can be taken after the conclusion of maternity leave and extends until the child reaches 3 years of age.

Bereavement Leave

An employee in Ukraine is eligible for bereavement leave for a maximum of 7 days following the death of an immediate family member.

Marriage Leave

In Ukraine, an employee is entitled to 10 days of leave in celebration of their wedding.

Study Leave

Employees in Ukraine have the right to paid study leave, and the employer provides compensation. The duration of the leave depends on the length of the exam period.

Adoption Leave

A person who has adopted a child has the right to leave in connection with the adoption of a child, provided that the application for the leave is received no later than three months from the date of entry into force of the court decision on the adoption of the child.

Annual Leave and Company Policies In Ukraine

Employee Benefits in Ukraine

Using an Employer of Record to Administer Benefits in Ukraine

In Ukraine, benefits play a central role in attracting and retaining top talent. Employees often expect more than just a paycheck – they're looking for stability, healthcare coverage, pension plans, and other perks that show a company is invested in their well-being. If you're not familiar with what’s standard or required, you risk falling short. An Employer of Record helps bridge that gap by administering a locally competitive benefits package that meets both legal requirements and employee expectations.

An EOR doesn't just check boxes, they make sure your employees receive benefits that are timely, properly communicated, and well-managed from the moment they’re onboarded. From managing healthcare contributions to adjusting for regional differences in leave or bonus entitlements, an EOR acts as both a legal and operational partner. The result is a better employee experience, less administrative burden on your internal team, and greater confidence that your offer is aligned with what top candidates in Ukraine actually want and need.

Termination and Severance Policies in Ukraine

Employment Termination and Severance Policies in Ukraine

Termination Process in Ukraine

In Ukraine, at-will terminations are not permitted beyond the probation period. Termination must be justified and based on specific scenarios, such as:

  • Voluntary employee resignation
  • Mutual agreement
  • Unilateral decision by the employer (e.g., probation period, changes in production or labour organisation, intoxication at work, incompatibility with the position, unsuitability for the job, systemic non-fulfillment, or absence from work for over 4 months due to temporary incapacity)
  • Contract expiration

Notice Period in Ukraine

The notice period for termination varies depending on the initiator:

  • Employer-initiated termination: 2 months notice
  • Employee-initiated termination: 14 days written notice
  • Mutual agreement: no notice period

Severance in Ukraine

In Ukraine, the severance payment amounts to one month's salary for every 2 years of employment.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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ABOUT THE AUTHOR

Jesse Weisz

Jesse is an experienced R&D Analyst at Playroll, a leading Employer of Record (EOR) provider. With a strong background in data analysis and market research, Jesse specializes in identifying emerging trends and driving innovation in global HR solutions. She is an all-rounder, critical thinker and success-seeker (often inextricably linked to being a late-night tea drinker).

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FAQs About Hiring in Ukraine

What is the minimum wage in Ukraine?

As of January 1, 2024, Ukraine's minimum wage rates are:

  • UAH 6,700 per month.
  • Applies across all sectors.
  • Adjustments may occur based on inflation rates and economic factors.

What is the average salary in Ukraine?

The average salary in Ukraine in 2025 is UAH 26,499 per month, with higher wages in Kyiv and tech industries, and lower pay in smaller regions and entry-level roles.

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