Hiring in Ukraine: Employer Costs, Labor Laws and How to Hire
Ukrainian employers pay a unified social contribution (ESV) of 22% on gross pay in 2026, on at least UAH 8,647 and at most UAH 172,940 a month. The employee pays 18% personal income tax and 5% military levy, withheld by the employer. On a UAH 40,000 gross monthly salary, the employer's cost is UAH 48,800 a month.
Hiring someone in Ukraine? This guide covers what an employee costs, the social contribution and tax rates, the labor rules that apply, the minimum wage, work permits and the ways a company outside Ukraine can employ someone there. Ukraine is not in the European Union. Martial law is in force, and some labor rules differ while it lasts.
Charges on salary in Ukraine, 2026
Key employment rules in Ukraine
How to hire in Ukraine
Hiring in Ukraine comes down to two decisions: who you hire, and how you employ them.
- Find the person. Write the role, set the salary against Ukrainian pay levels, then source and interview candidates. You can run the search yourself with a job post, or use a placement service that delivers a shortlist.
- Choose how to employ them. A Ukrainian entity running payroll, an employer of record or a contractor agreement. Each option is explained below.
- Make the offer. The contract has to meet the rules in the employment table above, including the rules that apply while martial law is in force.
Your options for employing someone in Ukraine
- Ukrainian entity: you register a company in Ukraine, run payroll, withhold income tax and military levy and pay the unified social contribution to the State Tax Service yourself. It suits a team of several people in Ukraine.
- Employer of record (EOR): a third-party provider becomes the legal employer and runs Ukrainian payroll for a monthly fee per employee. Your company directs the work.
- Contractor: the person invoices you through their own business. The relationship has to be genuinely independent, or it can count as employment.
Euro Remote Talent does not employ people on your behalf. We handle the placement: we find and shortlist the candidate, and you employ them through the route that fits.
What an employee costs in Ukraine
Employers pay one social contribution, the unified social contribution (ESV), at 22% of gross pay. Take a gross salary of UAH 40,000 a month. The employer pays:
- Unified social contribution: UAH 40,000 x 22% = UAH 8,800
The employer's cost is UAH 40,000 + UAH 8,800 = UAH 48,800 a month. From the gross salary, the employer withholds 18% personal income tax (UAH 7,200) and 5% military levy (UAH 2,000). The net salary is UAH 40,000 minus UAH 9,200 = UAH 30,800. ESV is paid on at least the minimum wage of UAH 8,647 and at most UAH 172,940 a month in 2026.
Minimum wage and pay
Ukraine's minimum wage is UAH 8,647 a month and UAH 52.00 an hour from 1 January 2026, up from UAH 8,000 and UAH 48.00. The State Budget law for each year sets it. The 2027 budget had passed only its first reading on 3 November 2026, so the 2027 rate will be published by the government when the law is adopted. See the full breakdown on our Ukraine minimum wage page. The average gross salary of a full-time employee was UAH 33,153 in September 2026, according to the State Statistics Service of Ukraine. See our average salary in Ukraine page.
Income tax in Ukraine
The employer withholds personal income tax and military levy from pay each month as the tax agent. The rules for 2026:
| Tax on employment income, 2026 | Base | Rate |
|---|---|---|
| Personal income tax, withheld by the employer | Gross salary | 18% |
| Military levy, withheld by the employer | Gross salary | 5% |
| Military levy after martial law | Gross salary, from 1 January of the year after the third calendar year after martial law ends | 1.5% |
The military levy rose from 1.5% to 5% on 1 December 2024 under Law No. 4015-IX. The Tax Code returns it to 1.5% after martial law ends, on the timetable above.
Work permits
Ukraine is not in the European Union, so EU free movement rules do not apply there. Foreign nationals who come to Ukraine to work for a set period are hired on the basis of a permit to employ foreigners. The employer applies to the regional employment center of the State Employment Service. The service is paid and takes 3 to 7 working days.
How Euro Remote Talent can help
We do placement. We source, screen and interview remote professionals across Europe, then deliver a shortlist of 3 candidates within 21 days for a flat $6,500, or your deposit back. Prefer to run the search yourself? Post a job for $299 and reach candidates who want to work remotely.
See how placement works, post a job or book a 30-minute call. Browse remote jobs in Ukraine to see who is hiring there now.
This is general information, not legal or tax advice. Rules change and collective agreements can set different terms. Confirm with a local accountant or lawyer before you hire.
Frequently asked questions
How much does an employer pay in social contributions in Ukraine?
22% of gross pay in 2026, as the unified social contribution (ESV). It is paid on at least the minimum wage of UAH 8,647 and at most UAH 172,940 a month.
What is the minimum wage in Ukraine in 2026?
UAH 8,647 a month and UAH 52.00 an hour from 1 January 2026, set by the State Budget law for 2026. The 2027 rate will be published by the government when the 2027 budget law is adopted.
How does martial law affect employment rules in Ukraine?
While martial law is in force, normal working time may reach 60 hours a week, basic annual leave is 24 calendar days, and the Labour Code rules on work on holidays and days off do not apply, according to the State Labour Service.
Do I need a work permit to hire an EU citizen in Ukraine?
Ukraine is not in the European Union, so EU free movement rules do not apply. Foreign nationals hired to work in Ukraine for a set period need a permit, which the employer requests from the regional employment center.
Can a company outside Ukraine hire someone there without a local entity?
Yes. The usual routes are an employer of record, a third-party provider that employs the person for you, or a genuine contractor agreement. Euro Remote Talent handles the placement: we find, screen and shortlist the person, and you choose the route.
Sources
- DPS, Changes to social standards and ESV from 1 Jan 2026, 13 Jan 2026. Checked 3 Nov 2026.
- DPS, ESV rate applied by employers, Law No. 2464-VI, art. 4, 7 and 8. Checked 3 Nov 2026.
- DPS, ESV in 2026, maximum base under Law No. 4695-IX, 20 Mar 2026. Checked 3 Nov 2026.
- DPS, PIT rate on salary, Tax Code art. 167.1. Checked 3 Nov 2026.
- DPS, Military levy at 5% from 1 Dec 2024, Law No. 4015-IX. Checked 3 Nov 2026.
- DPS, Military levy rates in 2026, 11 Jun 2026. Checked 3 Nov 2026.
- Derzhpratsi, Probation period, Labour Code art. 27. Checked 3 Nov 2026.
- Derzhpratsi, Normal working time, Labour Code art. 50. Checked 3 Nov 2026.
- Derzhpratsi, Maximum working time under martial law. Checked 3 Nov 2026.
- Derzhpratsi, Annual leave under martial law. Checked 3 Nov 2026.
- Derzhpratsi, Resignation notice, Labour Code art. 38. Checked 3 Nov 2026.
- Derzhpratsi, Severance on staff reduction, Labour Code art. 44. Checked 3 Nov 2026.
- Derzhpratsi, Work on holidays and days off under martial law. Checked 3 Nov 2026.
- Derzhpratsi, Leave for pregnant women and parents. Checked 3 Nov 2026.
- Derzhstat, Average salary, September 2026, 29 Oct 2026. Checked 3 Nov 2026.
- State Employment Service, Permit to employ foreigners and stateless persons. Checked 3 Nov 2026.
- Cabinet of Ministers of Ukraine, Draft State Budget 2027 adopted in first reading, 28 Oct 2026. Checked 3 Nov 2026.
