Employer of Record in Ukraine

How an Employer of Record Works in Ukraine

An Employer of Record (EOR) in Ukraine provides foreign companies with a legal way to hire in the country without the need for a local entity. The EOR takes on the role of the legal employer, which includes hiring employees, onboarding them, and handling compliance, while the foreign employer manages the day-to-day operations.

Rivermate provides EOR services in Ukraine, and our experts use their deep knowledge of the country to make hiring quick, easy, and compliant for international employers.

Ukraine labor market: At a glance

The hiring market
Greatest hiring activity:	Kyiv
Hiring timelines:	About 4–8 weeks for entry- and mid-level roles; 6–12 weeks for senior roles.
In-demand sectors:	Services, manufacturing, IT, healthcare, transport.
Sectors with skills shortages:	Skilled trades, engineering, and technical roles.

The salary market
Employer tax contributions:	22% up to a maximum of UAH 38,046.80, Or a reduced rate of 8.41% for employees with disabilities.
Minimum wage:	UAH 8,647 per month.
Average gross annual salary:	About UAH 383,000.
Income tax brackets:	18% flat rate.

What it costs to hire an employee in Ukraine

The base salary only makes up part of the picture when hiring in Ukraine. Other factors like employer contributions, leave, and benefits all add to the overall costs. Here’s what to plan for if you’re considering hiring in the country.

Salaries

Pay varies across industries and roles, but in general salaries are higher in Kyiv and other major cities. Higher-paying industries in the country include IT, telecoms, and finance. The statutory minimum wage is currently set at UAH 8,647 per month, or UAH 52 per hour. Payment of salaries must be made at least twice a month, and there can’t be more than 16 days between each payment.

Contributions

The Unified Social Contribution (USC) makes up 22% of gross salary, and this is only paid by the employer. However, there is a cap in place. The maximum base is equal to 20 minimum salaries, which is currently UAH 172,940. This means the maximum employer contribution is UAH 38,046.80 per month.

There is a reduced USC rate of 8.41%, which is paid instead of the standard 22%, but this only applies to employees with disabilities.

Employees also pay contributions, including personal income tax (PIT) at 18% and a military tax of 5%. This is reduced to 1.5% for military personnel and some security service employees. As such, net pay is equal to about 77% of gross pay.

Leave

Employees receive annual leave of at least 24 days per year, paid by the employer at the rate of their average salary.

Paid sick leave is also provided. The first five days are covered by the employer, and the Pension Fund of Ukraine takes over after this. Pay is equal to 50–100% of the average salary.

If an employee works on a public holiday, they usually receive double pay. However, due to the current martial law in place, this does not apply, and weekend work doesn’t automatically qualify for double pay either. Whether Saturday or Sunday is a scheduled rest day, or part of the normal working schedule, is also relevant.

Severance pay is equal to at least one month of salary for redundancy or reorganization, and all payments are due on the final day of work.

Benefits

Private health insurance is not mandatory but very popular, and now it’s almost standard in the private sector. Meal allowances and performance bonuses are also common.

Paying a 13th-salary bonus at the end of the year is also not mandatory, but it’s sometimes offered by foreign-owned companies.

Foreign talent

Hiring foreign workers involves additional costs, including the work permit. The employer applies for this and pays the fee, and the exact fee depends on the duration of the permit, which could last from months to three years. You may also need to budget for things like certified translations and legalizing documents.

Employer cost calculator

Get an accurate picture of the total employment costs in Ukraine by using our calculator.

What hiring in Ukraine really looks like

Market condition	What an employer needs to know
Talent availability	Strong overall, especially in IT.
Top-paying sectors	Information and telecommunications.
Regional differences	About a third of all vacancies are in Kyiv. Demand is also growing in safer regions of the country.
Key employer challenge	Mobilization. Men who are liable for military service can be called up at short notice.

There is a strong talent pool in Ukraine consisting of a highly educated workforce with particular strengths in STEM fields. The IT sector is very important for the country, including cybersecurity and software development, while other important areas are agriculture, manufacturing, finance, and energy. English proficiency is good, but varies, and it tends to be stronger in younger professionals.

Hiring takes about 4–8 weeks for entry- and mid-level employees, and 6–12 weeks for more senior roles. Strong candidates may be weighing up several options, so quick scheduling matters.

Candidates typically want stable employment, room to grow professionally, and competitive pay. Flexible work is also more important to them. Providing private health insurance is also common practice, especially in the IT sector. If you want to attract top candidates, it’s important to consider what you include in benefits packages.

In general, salaries are higher in Kyiv and major economic centers. Economic activity is also more stable in areas away from the conflict zones.

Remote work is popular, as is hybrid working. This must be formalized in writing, unless it’s needed because of the threat of armed aggression. Remote employees have the same rights as other employees. The employer also needs to provide equipment, or compensate them for using their own, and this should be clearly stated in the contract.

Country-specific problem that employers must know about

Mobilization has to be taken into account given the current circumstances. Under martial law, men who are liable for military service might be called up to serve, and this can be at quite short notice. As such, employers need to plan for this eventuality.

The first thing to do is check their military registration documents when hiring a candidate to find out if they are subject to military registration. Before you can hire them, they must be registered with the correct military authority. You must verify their documents no earlier than 72 hours before hiring them. Within seven days of issuing the hiring order, you must notify the relevant authority and maintain your own military registration records.

If an employee is called up to serve, you must keep their job and position, and you can’t dismiss them. You must also pay them any unused annual leave if they ask for it. Upon their return, they may be entitled to up to 60 days of unpaid leave in certain circumstances.

Because the loss of a team member to military service is a real possibility, make sure you plan for the potential consequences. This could involve documenting processes and sharing knowledge among other team members so they can continue the work if an employee has to make a sudden exit.

Compliance risks employers need to know about

Work permits

Foreign nationals usually need a work permit to work in Ukraine, unless they are permanent residents or refugees. The employer applies for it, and once it is issued, the employer has 90 days to sign the employment contract and 10 days to submit a certified copy. If the employee starts work before getting the permit, this can lead to fines equal to 20 times the minimum wage for each employee.

Probation

Probation is optional, but if used, it must be written into the hiring order and is normally included in the contract. It generally lasts up to three months, but can be up to six months in individual cases, as long as the trade union agrees. The limit for workers is one month. During martial law, probation can be used for any category of employee, including those who would otherwise be exempt. You can dismiss a probationer with three days’ written notice, but the employee can challenge this.

Time records

You must keep careful and accurate time sheets showing the hours each employee works as well as any overtime they complete. 40 hours is the standard working week, and there are legal limits on overtime, which is only allowed in exceptional cases.

Fixed-term contracts

Fixed-term contracts automatically become indefinite contracts if employment continues after the fixed term ends. Even if a fixed-term contract is renewed once, it is generally treated as indefinite. If you have a project that you let run on informally, this could mean the employee ends up on a permanent contract.

How Rivermate can help you stay compliant when hiring in Ukraine

At Rivermate, we apply local labor laws in Ukraine and handle every aspect of the employment relationship on your behalf, so you can focus your efforts on running your business and finding suitable talent.

Benefits of hiring employees through an EOR in Ukraine

Hiring in Ukraine is not just about finding the right person. You also need to have a compliant contract and deal with payroll and tax filings, while having a good understanding of local labor laws. If you don’t want to set up a local company and manage this all yourself, you can use the services of an EOR to handle it for you.

If you want to hire quickly, you’ll be able to hire in weeks instead of months when you use an EOR. Setting up a company involves preparing documents, tax registration, social fund registration, and more, and it can take months. An EOR already has everything in place, so you can get straight to onboarding employees while avoiding the setup costs and paperwork involved in setting up a local entity.

The EOR will draft contracts that meet Ukrainian labor law, handle payroll and taxes, administer leave and benefits, help with work permits for foreign nationals, and follow all the required processes.

It can also help to attract talent. Because the local experts know what top talent wants from a role, including potential benefits like private health insurance, they can use this knowledge to make suggestions that could help you to attract the best talent to your positions.

Using the services of an EOR also allows you to start small and add headcount as your needs change. This makes it a good way to scale with flexibility and tap into the tech talent pool in the country without making a long-term commitment.

Want to hire in Ukraine?

Hiring in Ukraine is easy when you use an EOR like Rivermate. We make the process simple for foreign companies, managing taxes, payroll, legal compliance, and more, so you can hire talent with complete confidence.

Talk to a Ukraine Hiring Expert

Sources:

https://natlex.ilo.org/dyn/natlex2/natlex2/files/download/46087/UKR-46087%20(EN).pdf

https://cis-legislation.com/document.fwx?rgn=8651

https://www.accace.com/labour-law-and-employment-in-ukraine/

https://tax.gov.ua/en/mass-media/news/999527.html

https://tr.tax.gov.ua/data/material/000/785/917389/YAkiy_rozm_r_dinogo_10.07.pdf

https://buh.ligazakon.net/news/242569_vyskoviy-zbr-u-2026-rots-sklki-platyat-fzichn-osobi-ta-pdprimts

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https://legalaid.ua/ua/dovgostrokova-viza-d-v-ukrainu/