Payroll and Benefits Guide Ukraine
Last updated: Jan 29, 2025
Certain regions of this country is under sanctions by OFAC; some services may be limited or subject to additional compliance requirements.
Contribution
| Employer Payroll Contributions | |
| 22.00% | Unified Social Contributions (maximum monthly contribution 160,000UAH) |
| 5.00% | Military Tax (the % can be lower depending on the employment model e.g. PE is 1%, or on worker status such as Military personnel who pay 1.5%). |
| 27.00% | Total Employment Cost |
|
Employee Payroll Contributions
|
|
|
0%
|
Social Security
|
| 0% |
Total Employee Cost |
| Income Tax | |
|
18%
|
Flat rate |
| 5.0% | Military/Defense Levy |
| 23.00% | Combined Flat rate |
Employer taxes
Employee taxes
Minimum Wage
General
The minimum wage is 8,000 UAH per month.
MINIMUM WAGE (PER MONTH)
Payroll
Payroll Cycle
The payroll cycle in Ukraine is bi-weekly and runs twice a month between the 15th and 20th of each month and the 31st and 7th of the following month.
13th Salary
There are no provisions in the law regarding 13th salaries.
|
Authority Payment |
Paid To |
Due Date |
Method |
|
Income tax |
Treasury of Ukraine |
7th / 22nd |
wire |
|
Social security tax |
Treasury of Ukraine |
7th / 22nd |
wire |
|
VAT |
Treasury of Ukraine |
30th of the next month |
wire |
Working Hours
General
The standard workweek consists of 40 hours over the course of five days. An employer can also establish a working week for six days of seven hours.
Overtime
| Aspect | Regulation Details | Notes |
| Maximum Ordinary Hours | 40 hours per week (typically 8 hours per day). | Overtime (сверхурочна робота) is work performed beyond this limit. |
| Maximum Daily Overtime | 4 hours over two consecutive days. | This is a very strict limitation on how much overtime can be scheduled in a short period. |
| Annual Overtime Cap | 120 hours per calendar year per employee. | This is the absolute maximum annual limit on standard overtime. |
| Martial Law Exception | During the period of Martial Law, the ordinary work week may be extended to 60 hours per week for employees at critical infrastructure facilities. The standard overtime pay rules still apply to work beyond the standard hours (40 or 60 hours, as applicable). | |
| Prohibitions | Overtime is strictly prohibited for: pregnant women, women with children under 3 years of age, and employees under 18 years old. | |
| Exemptions | Certain managerial or executive roles may be subject to a special regime of variable working hours that are compensated with additional annual leave (not standard overtime pay). |
Mandatory Overtime Pay Rates
Overtime compensation is mandatory and is calculated at a flat double rate, regardless of the number of hours worked or the specific day (weekdays or public holidays).
| Day/Condition | Statutory Minimum Compensation Rate (Multiplier) | Total Pay Rate | Notes |
| Standard Overtime Pay (Weekdays) | 2 times the regular hourly wage (Double Pay). | 200% | This applies to all hours worked beyond the daily or weekly limit. |
| Public Holiday Work | 2 times the regular hourly wage (Double Pay). | 200% | This is the compensation for work performed on an official public holiday. |
| Weekly Rest Day Work (e.g., Sunday) | 2 times the regular hourly wage (Double Pay). | 200% | The same double rate applies to work on the designated weekly rest day. |
Compensation Note
-
No Time Off for Overtime: For standard weekday overtime, providing compensatory time off in lieu of the monetary double pay is not permitted. The $200\%$ monetary payment is mandatory.
-
Time Off Option for Rest Days/Holidays: If an employee works on their designated Weekly Rest Day or a Public Holiday, they may be compensated either by the double pay ($\mathbf{200\%}$) OR by granting them another day of rest instead (by mutual agreement).
Other Premiums (Cumulative)
These premiums are separate from standard overtime but may be cumulative if the overtime is performed during the night:
| Premium Type | Time Period | Statutory Minimum Premium (Supplement) | Notes |
| Night Work Premium | 10:00 PM to 6:00 AM | At least +20% of the basic hourly rate. | This is a separate premium set by collective agreement and is cumulative with the $200\%$ overtime rate if the overtime occurs at night. |
Leave
Annual Leave (vacation)
Employees are entitled to a minimum of 24 calendar days of paid annual leave after completing at least 6 months of continuous employment. The paid leave entitlement may increase for minors and employees with difficult and dangerous jobs. Unused days can be accumulated for future use.
Public Holidays
Public holidays falling on weekends are moved to another day in lieu.
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 9 March 2026 | Monday | Women’s Day Holiday | |
| 12 April 2026 | Sunday | Orthodox Easter | Standard holiday |
| 13 April 2026 | Monday | Orthodox Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 8 May 2026 | Friday | Day of Remembrance and Victory over Nazism in World War II | Standard holiday |
| 31 May 2026 | Sunday | Orthodox Pentecost | Standard holiday |
| 1 June 2026 | Monday | Orthodox Pentecost Monday | Standard holiday |
| 28 June 2026 | Sunday | Constitution Day | Standard holiday |
| 29 June 2026 | Monday | Constitution Day Holiday | |
| 15 July 2026 | Wednesday | Ukrainian Statehood Day | Standard holiday |
| 24 August 2026 | Monday | Independence Day | Standard holiday |
| 1 October 2026 | Thursday | Day of the Defenders of Ukraine | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Sick Days
Employees are entitled to four months’ paid sick leave. The employer compensates the first five days of sick leave and the rest is compensated by the Social Insurance Fund.
The amount the Social Insurance Fund compensates an employee is dependent on the seniority of the employee:
- Fewer than six months of employment: payment based on minimum wage
- 0-3 years of employment: 50% of the employee’s average salary
- 3-5 years of employment: 60% of the employee’s average salary
- 5-8 years of employment: 70% of the employee’s average salary
- 8+ years of employment: 100% of the employee’s average salary
Maternity Leave
The maternity leave entitlement in Ukraine allows an employee 126 paid calendar days of leave, 70 of which must be taken before the estimated due date of the child and 56 after the birth. For multiple births or complicated confinement, 140 days maternity is given.
Social Insurance Fund compensates maternity leave at 100% of an employee’s average salary capped by a maximum base salary for Social Single Fee.
Paternity Leave
There is no paid paternity leave in Ukraine, however, fathers can take two weeks of unpaid leave for the birth of a child. Fathers can also acquire leave from the mother’s maternity leave if she has returned to work. In order to do this, a father must apply to his employer and provide them with a copy of the child’s birth certificate, a document confirming family ties, and a certificate from the mother’s place of employment confirming her return to work.
Parental Leave
After maternity leave ends, mothers, fathers, and grandparents can take unpaid parental leave until the child turns 3 years old.
Other Leave
Depending on the collective agreement or the terms of the employment contract, an employee may be allowed additional leave types upon approval between the employer and employee:
- Bereavement: An employee is entitled to bereavement leave of up to 7 days for the death of an immediate family member.
- Marriage: An employee is entitled to 10 days of leave in the event of their wedding.
- Study: Employees are entitled to paid study leave which is compensated by the employer. The length of the leave is dependent on the duration of the exam period.
PAID MATERNITY LEAVE (DAYS)
Termination
Termination Process
The termination process varies according to the employment agreement and Collective Agreement and is based on the type of contract and reason for termination. In general, an employee’s rights are strongly protected by legislation and pregnant women, women with children under three years of age, and pre-pension employees are all protected against dismissal.
| Salary payment interval / date | Final payment on termination | Bank account/payment-method requirement |
|---|---|---|
| Wages must be paid at least twice a month, with the interval between payments not exceeding 16 calendar days. The advance for the first half of the month must be paid no later than 7 days after that half-month ends. | On termination of employment the employer must pay all wages and other sums due on the day of dismissal (or at the latest when the employee requests after dismissal). | Payment must be in money (in Ukrainian hryvnia) and may be made by deposit into the employee’s bank account with the employee’s written consent. Cash payment is permissible otherwise. |
Notice Period
The notice period is dependent on the individual initiating the termination and must be given in writing:
- 2 months’ notice when the employer initiates the termination
- 14 days written notice when the employee initiates the termination
- Termination by mutual agreement has no notice period requirement
Severance Pay
A statutory severance payment of not less than one average monthly salary is required if the dismissal has been taken by the employer on the following grounds: redundancy, refusal of employee to transfer to another location and continue to work due to changes in essential working conditions, employee unsuitability for the job or position, reinstatement of an employee who previously occupied the position; or work cannot be provided to the employee due to destruction of employer’s property.
Probation Period
The probation period is dependent on the job role of the employee. The probation period for a non-qualified employee is one month and three months for specialists and managers.
Common Benefits
Taxable Benefits:
- Bonus
- Medical insurance – for employees and their families
- Life insurance
- Meal allowance
- Car allowance
- Mobile phone expenses
Immigration
Ukrainian immigration law provides limited options for employers of foreign nationals. Nationals of Azerbaijan, Armenia, Belarus, Georgia, Moldova, Russia, and Uzbekistan are D visa-exempt. Nationals of North Macedonia are D visa-exempt for specific purposes of stay, including employment and family reunification. Requirements, processing times, employment eligibility, and benefits for accompanying family members vary by the purpose of stay and visa classification.
Business visitors to Ukraine generally require a C visa for a short-term stay unless they are visa exempt based on their nationality. C visas usually permit single, double, or multiple entries. They are granted for six months or a duration corresponding to the intended visit but no longer than five years. Business visitors must limit their stay to 90 days in a 180-day period.
They may apply for an exceptional extension of stay for a total stay of six months calculated from the initial entry if they can show compelling reasons and evidence of sufficient funds. The allowable activities under business visitor status are limited.
The main work authorization categories are the Work/Temporary Residence Permit for when the host entity is a Ukrainian company or the Accreditation Card/Temporary Residence Permit for when the host entity is a Ukraine-based representative office of a foreign company. Work permits can be issued between one and three years depending on the foreign national’s position, education, and salary, and can be renewed. Accreditation Cards are issued for up to three years and can also be renewed.
Remote Work
Ukrainian law distinguishes between Home-based work and Remote work. Homebased work is defined as the work that is done from home or a designated location agreed upon between the employer and the employee. Such work arrangement is more structured as employer can inspect the employee’s remote workspace and employee is required to follow regular work hours (unless agreed otherwise). In addition, employment agreements should be established in writing and location may not be changed unless approved by the employer.
Remote work is a more flexible option that allows employees to work from any location of the employee’s choosing and according to their own schedule. Remote work arrangements should be established in writing unless emergency circumstances preventing it (such as a pandemic).
The employer is required to provide remote and home-based work employees with the necessary tools and equipment to perform the job and reimburse related expenses to the employee
Additionally, flexible working hours may be available at the request of the employee. Also at the initiative of the employer when there is a substantial change in working conditions (with two months’ notice) or when there is a threat of epidemic or any emergency (no prior notice is needed).
VAT
General
VAT is 20% standard rate.
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Payroll and Benefits Guide
in Ukraine
What’s covered in this guide:
- Employer/employee contributions
- Minimum wage
- Working hours
- Visa requirements
And more...
Public Holidays Calendar
| Date | Day | Holiday | Notes |
|---|---|---|---|
| 1 January 2026 | Thursday | New Year’s Day | Standard holiday |
| 8 March 2026 | Sunday | International Women’s Day | Standard holiday |
| 9 March 2026 | Monday | Women’s Day Holiday | |
| 12 April 2026 | Sunday | Orthodox Easter | Standard holiday |
| 13 April 2026 | Monday | Orthodox Easter Monday | Standard holiday |
| 1 May 2026 | Friday | Labour Day | Standard holiday |
| 8 May 2026 | Friday | Day of Remembrance and Victory over Nazism in World War II | Standard holiday |
| 31 May 2026 | Sunday | Orthodox Pentecost | Standard holiday |
| 1 June 2026 | Monday | Orthodox Pentecost Monday | Standard holiday |
| 28 June 2026 | Sunday | Constitution Day | Standard holiday |
| 29 June 2026 | Monday | Constitution Day Holiday | |
| 15 July 2026 | Wednesday | Ukrainian Statehood Day | Standard holiday |
| 24 August 2026 | Monday | Independence Day | Standard holiday |
| 1 October 2026 | Thursday | Day of the Defenders of Ukraine | Standard holiday |
| 25 December 2026 | Friday | Christmas Day | Standard holiday |
Hi, Is the minimum wage still 6000 UAH per month?
Yes, the monthly minimum wage is 6,000 UAH. This minimum wage has been in effect since January 1, 2021.
Hi, is there a leave of absence policy or documentation for Ukraine?
Employees can take unpaid leave for a number of reasons, such as marriage (10 days) or bereavement (7 days for close family member). They can also request a period of unpaid leave for an unspecified reason, which is up to 15 days and must be agreed to by the employer.
Hi. Military tax is 5% from 1st of December 2024.
It depends on the specific worker and employment set up. For example, under PE the it might only be 1%, under other employment setups it could be 5%.
Yes, but on the top of page provided information regarding employment. For PE not only military tax different, but income tax as well
Hi Maria, CountryPedia is not tailered to different working models e.g. it is not set up to be specific for PE, the CountryPedia a general page.