Employer of Record (EOR) in
Ukraine
Ready to employ talent in Ukraine?
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
Language(s)
Currency
Capital
Kyiv
Population
39.5 M
Public holidays
12
VAT
20%
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
DEFAULT
Indefinite contract
The standard and default form of employment in Ukraine is an indefinite (open-ended) employment contract, which continues until terminated on one of the statutory grounds set out in Labor Code Articles 36, 40, or 41. Fixed-term contracts may lawfully be used only where the indefinite form is impractical given the nature or conditions of the work.
Fixed-term contracts are the exception rather than the rule and may be used only for genuinely temporary work — e.g. covering an absent employee (up to about 4 months), seasonal work (up to 6 months), project-based or one-off tasks, or at the employee's own request. If the relationship continues in fact after expiry without either party objecting, the contract is treated as converted to an indefinite one. During martial law, employers have somewhat greater latitude to use fixed-term contracts, including contracts tied to the duration of martial law itself.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
The standard working week is 40 hours, typically 8 hours/day over a 5-day week (or up to 7 hours/day under an alternative 6-day week). Overtime is capped at around 120 hours per year and paid at 200% of the regular rate; pregnant employees and those with children under 3 cannot be required to work overtime. During martial law, employers in critical infrastructure and defense-related sectors may extend the working week up to 60 hours, and some rest-time guarantees and overtime limits are relaxed for the duration of the war.
PROBATION PERIOD
1-6 months
Probation is generally capped at 3 months, extendable to 6 months with trade union agreement for specialist/managerial positions, and limited to 1 month for manual workers. Certain groups (minors, people with disabilities, first-time jobseekers, quota-hired employees) are normally exempt from probation, but during martial law employers may apply probation to any category of employee, including those previously exempt. Dismissal for unsuitability during probation requires only 3 days' written notice and carries no severance obligation.
13TH / 14TH SALARY
Not Required
Ukrainian labor law does not require a 13th or 14th month salary. Any year-end or holiday bonus is entirely discretionary, governed by the employer's internal policy or a collective bargaining agreement rather than statute. Such bonuses are common in the IT and multinational-employer sectors as a competitive practice, but are not a universal or legally mandated entitlement.
JOB TITLE REGULATIONS
Regulated
There is no general legal restriction on job titles used by private employers, but for state pension-record, hazardous-occupation, and early-retirement-eligibility purposes, employers (particularly in the public sector) are expected to align recorded job titles with Ukraine's National Classifier of Professions (DK 003:2010). Using a non-standard title for a role that otherwise qualifies for special pension or workplace-safety treatment can create compliance risk in an employee's official labor record.
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
Employers pay a Unified Social Contribution (ESV/USC) of 22% of each employee's gross salary, up to a maximum monthly contribution base (a multiple of the statutory subsistence minimum). This levy is funded entirely by the employer — Ukraine abolished the employee-side USC contribution in 2016 — and covers state pension, disability, unemployment, and occupational-injury insurance.
Employees do not pay any portion of the Unified Social Contribution (ESV/USC); it is funded entirely by the employer. Employees instead have Personal Income Tax (18% flat rate) and a Military Levy (5% of gross income, raised from 1.5% effective 1 December 2024 under Law No. 4015-IX to help fund wartime spending) withheld from gross pay by the employer.
Tax and social-contribution rates, thresholds, and martial-law-related rules in Ukraine change frequently and remain subject to further legislative amendment while the war and martial law continue. This summary reflects the rules understood to be in effect as of August 2026, is for general informational purposes only, and should not be relied upon as tax, legal, or accounting advice. Employers should confirm current rates with a licensed Ukrainian tax advisor or legal counsel before making payroll decisions.
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Calculate your EOR costsHere's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
Type
Duration
Pay During Leave
Sick leave (days 1-3)
50–100% (employer, by tenure)
50–100% (employer) days 4–5, then Social Insurance Fund from day 6 (same scale)
50–100% (Social Insurance Fund, by tenure), up to 4–10 months by condition
Up to 7 calendar days for the death of a spouse, child, or parent; up to 3 calendar days for other relatives (unpaid unless the collective agreement provides otherwise)
Bereavement leave
Up to 10 calendar days, unpaid, available by agreement with the employer for the employee's own wedding, under the Law of Ukraine 'On Leave'
Marriage leave
Additional paid leave for employees combining work with study at an accredited institution; duration varies by education level and exam/thesis schedule (commonly on the order of 10-40 calendar days per exam session), under Labor Code Chapter XIV and the Law 'On Leave'
Study/educational leave
Unpaid leave to care for a child until age 3 (extendable to age 6 where medically required), available to the mother, father, or another family member actually providing care; job protection is guaranteed and the period counts toward continuous service
Childcare (parental) leave
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
Statutory Benefits
In addition to statutory leave, employees are entitled to the following statutory benefits:
Ukraine funds its social insurance system through the Unified Social Contribution (ESV/USC), a single payroll levy that has been paid entirely by employers since 2016.
- Employer: 22% of gross salary, up to a monthly contribution cap
- Employee: 0% (no employee-side USC)
The ESV funds state pension, temporary-disability, unemployment, and occupational-injury insurance. Employees separately have Personal Income Tax (18%) and a Military Levy (5%, raised from 1.5% in December 2024) withheld from gross pay — but these are income taxes, not social security contributions.
WORKPLACE INJURY PROTECTION
Workplace-injury and occupational-disease insurance in Ukraine is funded through the same 22% Unified Social Contribution paid by the employer — there is no separate stand-alone workers' compensation premium.
- Employees injured at work, or who develop an occupational illness, are entitled to compensation for lost earnings, medical treatment, rehabilitation, and (where applicable) disability benefits through the state Social Insurance Fund
- Employers must investigate and report workplace accidents and maintain safe working conditions under the Law of Ukraine 'On Labour Protection'
- Employers can face additional civil liability for damages beyond the statutory insurance benefit where an accident resulted from the employer's fault
Statutory severance in Ukraine depends on the reason for termination and is generally lower than in many EU jurisdictions — there is no general tenure-based formula (e.g. 'X weeks per year of service').
- Redundancy, staff reduction, or enterprise liquidation: minimum of one average monthly salary
- Employee found unsuitable for the role through no fault of their own (health grounds, insufficient qualifications): one average monthly salary
- Conscription into military service: minimum of two months' average salary under current wartime rules
- Termination due to the employer's breach of labor law, harassment/mobbing, or failure to address a harassment complaint: up to three average monthly salaries
- Termination of a director/executive's mandate by the owner without cause: up to six average monthly salaries, unless the contract sets a different amount
- All terminations: the employer must also pay out any accrued but unused annual leave and all outstanding wages
Ukraine has no statutory requirement for a 13th or 14th month salary.
- Any year-end, holiday, or performance bonus is discretionary and set by the employer's internal policy, employment contract, or collective bargaining agreement
- Such bonuses are common in the IT and multinational-employer sectors as a market-competitive practice, but are not legally mandated
- Where paid, discretionary bonuses are taxed the same as ordinary salary (18% PIT + 5% Military Levy) and are subject to the standard 22% employer ESV contribution
Here's what you need to know about their employment laws, taxes, termination rules, and more. And many companies choose to work with an Employer of Record in Ukraine to stay compliant from day one.
Unfair dismissal
Ukrainian law protects employees against dismissal without a lawful statutory ground under Labor Code Articles 40-41. An employee dismissed unlawfully may apply to court (generally within one month of dismissal) for reinstatement, back pay for the period of forced absence, and in some cases moral damages. Certain categories enjoy enhanced protection and generally cannot be dismissed at the employer's initiative (other than full enterprise liquidation), including pregnant women, women with children under 3 (or under 6 where medically indicated), and single parents/guardians of children under 14 or a disabled child. Some of these protections have been narrowed for the duration of martial law — for example, trade union consent requirements for dismissal are generally suspended, and dismissal of an employee on leave or sick leave (normally prohibited) is now permitted in certain circumstances.
Objective / fair dismissal
Lawful grounds for employer-initiated dismissal are exhaustively listed in the Labor Code and include: staff/enterprise redundancy, established unsuitability for the role, systematic breach of duties after a prior disciplinary sanction, a single gross violation (e.g. theft, intoxication at work, unexplained absence), loss of trust (for employees handling money or valuables), and enterprise liquidation. During martial law, additional grounds apply, including impossibility of providing work due to hostilities or destruction of the workplace, and prolonged unexplained absence (over 4 consecutive months) linked to mobilization-related circumstances.
During probation
3 days' written notice; no severance; employer need only cite unsuitability. Probation generally capped at 3 months (1 month for manual workers, up to 6 with union agreement for certain roles).
After probation
Once probation ends (or if none was set), termination must rest on one of the statutory grounds in Labor Code Articles 40-41, generally with the applicable notice period (e.g. 2 months for redundancy) and, where applicable, severance pay and compensation for unused leave. Certain categories of employee retain enhanced dismissal protection after probation (see unfair dismissal above).
Notice periods and dismissal procedures summarized here reflect Ukraine's peacetime Labor Code as temporarily modified by martial-law legislation (principally Law No. 2136-IX and subsequent amendments) in effect since February 2022. These wartime rules are explicitly temporary, continue to be revised as martial law is periodically extended, and are expected to revert toward the pre-war baseline once martial law ends. Employers should verify current requirements before acting, as the legal regime can change with little notice.
Content last reviewed Sep 2026. Employment laws change fast, always verify critical hiring decisions, and talk to our team of international experts.
