Hire in Ukraine

Employer of Record(EOR) in Ukraine

Ukraine Workforce Unlocked: How Employer of Record Makes Hiring Easy

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At a Glance

Capital City
ChaadHR entity


Hire employees
$599.00 / month
Hire contractors
$49.00 / month


Payroll, benefits, taxes, and compliance can be difficult to manage in Ukraine, particularly if you don't have established local relationships. You can hire employees in Ukraine effectively, conveniently, and in full compliance with all relevant labor laws.

Major economic hubs:

Berlin, Hamburg, Munich, Frankfurt

Skills in demand :

Software Developers, Architects, Programmers; Electrical Engineers, Nursing Professionals, IT Consultants, And Analysts.

Public and Provincial Holidays

Employee Leaves


Resident Tax Information

Residents of Ukraine are liable to pay taxes on their worldwide income. However, the taxes  are subject to the restrictions set forth by any applicable Double Tax Treaty. Non-resident  employees are subject to income tax in Ukraine only on their Ukrainian-source income.  

Ukrainian-source income, for example, includes income received by an employee from  their employer, either resident or non-resident, concerning employment exercised in  Ukraine or, under conditions, investment profit from operation with non-Ukrainian  investment assets if the issuers own Ukrainian subsidiaries.  

The same tax rates apply to tax residents and non-residents (with certain exceptions).  

Resident individuals are taxed on their worldwide income at a standard tax rate of 18%.  

Taxable income applies to any income received as a salary, benefits, and income from  abroad.

Social Security

As per the provisions of the Ukrainian legislation, an employer must enroll an employee in the Ukrainian state social security system upon signing an employment agreement. An employer is also responsible for payment and accrual of social security contributions (SSC) at its own expense to the state budget.

The social security contribution in Ukraine is 22% of the gross earnings (salaries and benefits paid to employees). This percent is applied to salaries less than 25 subsistence minimums for able-bodied persons.

The 22% of gross salary is divided among different funds that include the unemployment fund, accident fund, pension contribution, and temporary disability fund.

The maximum base for the Unified Social Tax (UST) is 15 x (the average cost of living), with a maximum capping of UAH 90,000.00.

Statutory Benefits

Statutory benefits are a certain kind of mandated benefits that employers must comply  with while hiring and employing full-time and part-time employees. Statutory benefits that  are mandated include contributions towards social security, unemployment insurance, and  workers’ compensation.  

Statutory benefits in Ukraine include pension benefits, unemployment, death, and short term and long-term disability resulting from occupational illnesses or personal accidents.  

The employment laws in Ukraine also mandate paid time off.  


The pension system in Ukraine is based only on level 1 of the pension provision that  follows a PAYG ‘pay as you go’ level. A retired employee can claim his pension at the age of  60 years. The contributions to pension amount to 22% of an individual's salary, which is  paid either by the individual or their employer.

Legislation Leaves:  

Employers must pay salaries for vacation days (also known as Vacation pay). This provides  employees with annual leaves to preserve    

  • Their place of work (position)  
  • Salary during that period  

An employee during the vacation period is only paid an average salary.

Employment Insurance:  

State social security payments are responsible for the payment at the time of short-term  disability, long-term disability, or during unemployment. Contribution to the employment  insurance is made by the employer on behalf of their employees in the form of unified  social tax. The employer’s contribution to the employment fund is 22% of the employee's  gross salary.  

Short-term disability – Employees are paid benefits in 100% x (employee's average salary  per day of disability). The employer pays the first 5 days, the rest – by the state fund.  

However, the payment amount depends on the employee’s length of service if the disability is not work-related.  

Long-term disability – Long-term disability benefits depend on the average salary (or  minimum income) and the level of disability. The spherical disability state commission  establishes the level of disability.  

Unemployment insurance – Compensation from the unemployment fund depends upon  the reason for unemployment, the length of service, and the person's average salary  before unemployment. This compensation could also be provided as one single payment.

Fringe Benefits

Fringe benefits are an additional part of an employee's compensation, considered part of the employee’s salary for payroll purposes, and a basis for calculating employees' labor rights.

Under their benefits policies, Ukrainian companies usually offer alternatives, including inkind compensation and flexible work agreements.

Companies know that incentivizing their employees is not always paying more but better.

In this regard, companies use different in-kind elements to individualize the compensation for every employee’s needs; this also has favorable tax treatment, increasing the net amounts employees receive.

Commonly provided fringe benefits include

  • Meal vouchers
  • Health insurance  
  • 13th-month bonuses  
  • Performance-based  
  • bonuses

Voluntary medical insurance offers different additional options, some of the most popular  ones in Ukraine being:

  • Coverage of exclusions from the agreement. These are usually provided within certain  corporate limits and could include prosthetic devices.  
  • Health Days that include preventive health checkups arranged in the office.
  • Wellness benefits include access to swimming pools, gyms, or compensation for a gym  membership.  
  • First aid training workshops and/or lectures from the doctors in the office.
  • There is coverage for a certain limited number of critical illnesses in the leading specialized clinics outside Ukraine, such as coronary artery bypass surgery, cancer,  heart valve replacement or repair, live-donor, neurosurgery, and organ tissue transplant. This is a different insurance product called ‘worldwide medicine.’

Exempt Benefits

The exempt benefits include

  • Insurance benefits
  • Pension amounts

Long-term Incentives

The mandatory long-term incentives listed above include market practice benefits. Long term benefits are a great strategic way to retain and attract the right talent to a business.  

A few commonly provided supplementary employee benefits in Ukraine include retirement,  life insurance, medical, and personal accident insurance. A few perks also range from  health days’ to critical illness coverage.


Long-term life insurance – Employers in Ukraine provide additional retirement insurance  that can be arranged in the form of long-term life insurance. For tax benefit purposes, an  employer chooses insurance coverage that must be arranged in the form of additional  pension insurance. Such insurance covers have several requirements according to the  law:

  • Minimum duration for the coverage – until official pension age in Ukraine
  • No prior cancellation (except in cases of disability, critical illness, or death, disability)
  • Beneficiary – insured employee or their dependents

In cases other than above, the employer has to pay the following taxes:  

  • Unified social tax - 22%  
  • Personal income tax - 18%  
  • Military tax of 1.5%.  

However, corporate clients use this as an instrument of the social package.

Group life insurance:

Territory of coverage: Ukraine or worldwide.  

Limits: Fixed amounts or salary-based (up to 3x annual salaries)  

Scope of coverage:  

  • Death of the employee resulting from any reason
  • Permanent disabilities
  • Injuries & traumas or Temporary disability (fixed % of compensation per day of disability)
  • Critical illnesses that include heart attack, brain tumor, cancer, and the like

The employer pays costs and premiums that depend on factors such as each employee's  group size, occupation, gender, and age.

Typical medical insurance plans in Ukraine include:

  • In-patient and Out-patient treatments  
  • Emergency care  
  • Expenses for prescription medicines
  • Dental care and additional options include treatment of critical illnesses, maternity  care, and preventative check-ups.

Premiums for health insurance in Ukraine are usually paid for by the employer. The costs  depend on group size, the scope of the medical plan, level of clinics covered (state/  departmental, private clinics of different levels).

Personal Accident Insurance:

Territory of coverage: Ukraine or worldwide.  

Period of coverage: working hours only, 24 hours a day (preferable)  

Insurance limits: fixed amounts or salary based (usually up to 3x annual salaries)  

Scope of coverage:      

  • Death due to personal accident  
  • Permanent disability  
  • Injuries & traumas or temporary disability (% of compensation for each day of disability)  

Premiums are must be paid for by the employer, and the premium amounts would depend  upon group size and employee occupation.

Business Travel Insurance:

This insurance has a few forms, including single policies, group medical coverage, or  separate corporate business travel insurance policies.  

Scope of coverage:

  • Medical costs  
  • Personal accidents  
  • Assistance Third-party liability  
  • Baggage insurance  
  • Financial risks (trip cancellation)  
  • Business travels within Ukraine

Termination/Severance in Algeria

The amount of severance pay employees in Ukraine are entitled to depends on the reason for termination and the employee’s seniority. If an employee terminates their contract for violation of agreement or law, they are entitled to a severance pay of three average salaries.

In most other cases, severance pay is one month's salary in addition to the notice period pay (if provided in lieu of actual notice period), compensation for unused vacation pay, and other benefits.

Corporate officers are entitled to a severance pay of six months of average salary.

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Competitive pricing. We offer different payment plan for SMBs and enenterprises. Get discounts when you hire more.
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We have local experts on the ground, offering in-country support. Your employee are in good hands.
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We take all responsibility for ensuring that you comply with local regulations when you hire employees through Chaad.
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Pay your employees in 70+ currencies and take advantage of the best currency rates available. Send global payments with a single click and keep track of your transfers in real time.

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Employer of Record

With our Employer of Record(EOR) network you don't need to set up entities to hire full-time talent abroad. We help you hire in 150+ countries and ensure 100% compliance with local laws.

EOR in 150+ countires
Handle taxes, social contributions
compliance ready System

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We take care of all the details to make sure you comply with local laws, including those related to taxes, social security, the minimum salary, termination regulations, and more.

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Trusted by global businesses and leaders

“ChaadHR is like a global-hiring specialist sitting by our side, and makes hiring globally as smooth as hiring on our local sites. We hire people, present requirements, and ChaadHR covers everything else.”

Yuki Akiyama
HR Director, Bimgoo

“Hiring compliance is always a complicated issue during global hiring. ChaadHR optimized this problem transparently and thoroughly. We no need to worry furthermore, and our employees and contractors also feel comfortable and give us positive feedback about ChaadHR."

Andrew Ellison
Hiring Manager, Wimton Logistics

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$ 49.00 USD
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per month, per contractor
Compliant contracts for 150+ countries
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$ 299.00 USD
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per month, per employee
Leverage our EOR, Hire employee in 150+ countries.
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