What payroll taxes apply in Ukraine in 2026?

Employers pay a 22% unified social contribution, capped at UAH 129,705 per month. From gross pay, employers withhold 18% personal income tax and a 5% military levy. The 5% rate applies while martial law is in force.

How does martial law affect employment in Ukraine?

Martial law changes several standard rules. Public holidays are working days, employers may limit annual leave to 24 days, and some dismissal procedures are simplified. Check mobilization rules for male employees as part of your continuity planning.

Can Good Balance Global hire employees in Ukraine?

Yes. As your Employer of Record (EOR), we employ the person under Ukrainian labor law, withhold income tax and the military levy, and pay the unified social contribution on time. We track martial-law changes for you, so your contracts stay current.

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Payroll and benefits guide

Ukraine

CapitalKyiv

Fiscal Year1 January - 31 December

Date Formatdd/mm/yyyy

CurrencyUAH (Ukrainian Hryvnia)

Payroll FrequencyMonthly

Employer Taxes22%

Employee Costs5%

Overview

Languages: Ukrainian
Income tax: 18%
VAT: 20%; Reduced rates: 14%, 7%. 7% for medicines, medical goods, and accommodation; 14% for some agricultural products

Contributions

Employer

22%

Unified social contribution (USC)Capped at 15 times the minimum wage, UAH 129,705/month (2026)

22%

Total employer cost

Employee

Military levyWithheld from gross pay under martial law; returns to 1.5% from 1 January of the year after martial law ends. Personal income tax of 18% is withheld separately

Total employee cost

Authority Payments

Authority PaymentPaid ToDue DateMethod

Authority Payment

State Tax Service of Ukraine

Paid To

Personal income tax and military levy withheld from wages

Due Date

When salary is paid

Method

Bank transfer; reported on the quarterly unified payroll report

Authority Payment

State Tax Service of Ukraine

Paid To

Unified social contribution (USC)

Due Date

20th of the following month

Method

Bank transfer; reported on the quarterly unified payroll report

Minimum Wage & Working Hours

Minimum wage: UAH 8,647 / Monthly; Effective 1 January 2026
Standard working hours: 40 hours per week
Overtime: Paid at 200% of the regular rate; up to 4 hours over 2 days and 120 hours per year

Leave

Annual leave24 calendar daysUnder martial law, employers may limit paid annual leave to 24 days
Sick leaveEmployer pays the first 5 daysThe Pension Fund of Ukraine pays from day 6, at 50%–100% of average pay depending on insurance record
Maternity leave126 days70 days before and 56 days after birth, paid from social insurance
Paternity leaveUp to 14 calendar daysOne-time paid leave on the birth of a child, requested within 3 months of birth; it cannot be split or replaced with cash. Under martial law, employers can refuse it to staff working at critical infrastructure sites
Parental leaveUntil the child turns 3Available to either parent
Public holidaysSuspended under martial lawPublic holidays are working days while martial law is in force

Leave type	Duration	Notes
Annual leave	24 calendar days	Under martial law, employers may limit paid annual leave to 24 days
Sick leave	Employer pays the first 5 days	The Pension Fund of Ukraine pays from day 6, at 50%–100% of average pay depending on insurance record
Maternity leave	126 days	70 days before and 56 days after birth, paid from social insurance
Paternity leave	Up to 14 calendar days	One-time paid leave on the birth of a child, requested within 3 months of birth; it cannot be split or replaced with cash. Under martial law, employers can refuse it to staff working at critical infrastructure sites
Parental leave	Until the child turns 3	Available to either parent
Public holidays	Suspended under martial law	Public holidays are working days while martial law is in force

Termination

Probation period: Up to 3 months
Notice period: 2 months for redundancy
Severance pay: At least 1 average monthly salary on redundancy
13th salary: Not mandatory
Notes: Martial-law rules allow some exceptions to standard dismissal procedures

FAQ

Sources

Last updated: November 1, 2026

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