Capital City
Kyiv
Currency
Hryvnia
(
₴
)
Timezone
GMT +2
Payroll Frequency
semi-monthly
Tax Year
1 January - 31 December
Employer Tax
22%
Languages
Ukrainian
Capital City
Kyiv
Currency
Hryvnia
(
₴
)
Timezone
GMT +2
Payroll Frequency
semi-monthly
Tax Year
1 January - 31 December
Employer Tax
22%
Languages
Ukrainian
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.
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.
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.
From compliant contracts to competitive benefits, Playroll’s EOR services keep you aligned with local labor laws and regulations, safeguarding your business, so you can focus on growth.
Book a DemoBusinesses 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.
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.
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.
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.
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.
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.
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.
1 January - 31 December is the 12-month accounting period that businesses in Ukraine use for financial and tax reporting purposes.
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.
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.
Ukranian law does not include provisions for 13th salaries.
Employer payroll contributions are generally estimated at an additional 22% on top of the employee salary in Ukraine.
In Ukraine, the typical estimation for employee payroll contributions cost is around 2.1%.
In Ukraine, the individual income tax rate is a flat 18%, calculated uniformly across all income levels.
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.
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.
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:
Make better business decisions by consolidating global payroll data, while seamlessly syncing your existing payroll operations.
Book a DemoIn 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.
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.
The following are the 10 recognised holidays in Ukraine in a calendar year:
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.
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 allows fathers to take up to 14 paid calendar days leave within the first three months after the birth of their child.
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:
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.
An employee in Ukraine is eligible for bereavement leave for a maximum of 7 days following the death of an immediate family member.
In Ukraine, an employee is entitled to 10 days of leave in celebration of their wedding.
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.
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.
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.
In Ukraine, at-will terminations are not permitted beyond the probation period. Termination must be justified and based on specific scenarios, such as:
The notice period for termination varies depending on the initiator:
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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As of January 1, 2024, Ukraine's minimum wage rates are:
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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