Ukraine remains a strong source of skilled talent, especially in IT, but employers must work within martial-law rules in force since 24 February 2022, currently extended to 31 October 2026. Holidays are working days, critical-infrastructure employers can extend hours, and military registration duties apply to every employer. Several rules changed recently. The military levy on salaries rose to 5% on 1 December 2024. The minimum wage rose to UAH 8,647 a month on 1 January 2026. Military registration went digital on 27 June 2026, and from 1 September 2026 employees reserved from mobilisation must earn at least three times the minimum wage.
Currency: Ukrainian Hryvnia (₴ UAH)
Language: Ukrainian (official, required for HR documents); English widely used in IT
Regulatory Authority: State Labour Service, State Tax Service, Pension Fund of Ukraine and territorial recruitment centres (military registration)
Last updated: October 2026
UAH 8,647 a month or UAH 52 an hour from 1 January 2026. One national rate, pro-rated for part-time work. The draft 2027 budget proposes UAH 9,546 from 1 January 2027, but this is not yet law.
Employment is formalised by a contract and/or hiring order, in Ukrainian. The State Tax Service must be notified before the employee starts. Fixed-term contracts are allowed only where indefinite employment cannot be established.
Up to 3 months (6 months in specific cases with union consent), or 1 month for blue-collar workers. Either side may end it with 3 days' written notice and no severance.
About 22% on top of gross salary, made up of the Unified Social Contribution (ESV). The effective rate is lower for salaries above UAH 172,940 a month. Optional health insurance adds about 2–5%.
At least 24 calendar days of annual leave. Under martial law, employers may limit basic leave to 24 days, and critical-infrastructure employers may refuse leave. Sick pay for the first 5 days is paid by the employer.
40 hours a week and 8 hours a day as standard. Under martial law, critical-infrastructure employers may extend the week to 60 hours and reduce weekly rest to 24 hours.
ESV of 22% on salary, from the minimum wage up to UAH 172,940 a month (maximum UAH 38,046.80). Employees pay no social contribution of their own.
Flat 18% personal income tax plus a 5% military levy, withheld from gross pay, for a total of 23%. A reduced tax benefit is available only to low earners.
Overtime is paid at double the normal rate. It is capped at 4 hours over 2 consecutive days and 120 hours a year. Weekend and holiday work earns double pay or time off in lieu.
Redundancy needs 2 months' personal written notice and at least 1 month's average earnings as severance. Employees resign with 14 calendar days' notice.
All amounts, including pay for unused leave, are due on the last working day. Late payment costs average daily earnings for each day of delay.
Public holidays are working days. Employers must check military registration before hiring and notify the recruitment centre within 7 days of hires and exits. Critical enterprises can reserve staff earning at least 3x minimum wage (UAH 25,941) from 1 September 2026.
2025–2026 updates
Put every hire on a written contract or hiring order in Ukrainian; bilingual versions are common. Notify the State Tax Service before the first working day, as unregistered employment carries a fine of UAH 86,470 per employee. Use indefinite contracts by default. Fixed-term contracts need a genuine reason, and repeated renewals can turn them into permanent employment. Check the employee’s military registration documents before they start.
Pay salary at least twice a month, no more than 16 days apart. Withhold 18% income tax and the 5% military levy when salary is paid, and pay 22% ESV on top. File a single monthly return covering income tax, the military levy and ESV. Keep pay at or above UAH 8,647 a month; on a main job, ESV is topped up to the minimum even if pay is lower.
Employees get at least 24 calendar days of annual leave. The employer pays the first 5 days of sick leave and the Pension Fund pays from day 6, at 50–100% of average salary depending on insurance record. Maternity leave is 126 calendar days at full average earnings, paid by the Pension Fund. Fathers may take up to 14 days of unpaid leave. Under martial law, the 11 public holidays are normal working days.
For redundancy, give 2 months’ personal written notice, offer any suitable vacant roles, and pay at least 1 month’s average earnings. Union consent may be needed, though martial law relaxes this in many cases. Pregnant employees, parents of young children and staff called up for service are protected. Mobilised employees keep their job but need not be paid. Pay all final amounts on the last working day.
Notify the territorial recruitment centre within 7 days of each hire or exit and file monthly reports by the 5th. Only enterprises designated as critical can reserve staff from mobilisation, and from 1 September 2026 reserved staff must earn at least UAH 25,941 a month. Process employee data under the 2010 Personal Data Protection Law. A GDPR-style data law and a new Labour Code are in Parliament but not yet adopted.
Download the full Ukraine Payroll & Employment Guide 2026 (PDF)
For detailed hiring information, customised employment guidance or support with your Ukraine hiring, please reach out to our team. We provide compliant employment contracts, payroll processing and tax remittance, social security registration and reporting, benefits administration, and onboarding and offboarding support. See our EOR pricing: flat from $349 per employee, per month.
FAQ
Yes. An Employer of Record such as StratEdge Global becomes the legal employer and handles contracts, payroll, ESV, income tax and military levy withholding, military registration duties and compliance, while you direct the day-to-day work.
About 22% ESV, capped at UAH 38,046.80 a month. The employee separately bears 18% income tax and the 5% military levy, so net pay is about 77% of gross.
The employee keeps their job and position for the period of service, but the employer does not have to keep paying salary. Employers must keep military registration records and notify the recruitment centre about hires and exits.
No. While martial law is in force, statutory public holidays are normal working days. Employers may choose to give days off.
