Employee benefitsin Ukraine

Ukraine's public healthcare is financed from the state budget through the National Health Service of Ukraine, which pays contracted public and private clinics under the Programme of Medical Guarantees. Services in the programme are free at the point of use for patients, regardless of employment status, so employees and sole-proprietor contractors have the same access. Each person signs a 'declaration' with a family doctor, therapist or paediatrician, who provides primary care and refers patients to specialists and hospitals. The programme covers primary care, emergency care, childbirth, a range of specialist and hospital treatment, and listed medicines; clinics must not charge for covered services.

Employers do not pay a separate health premium: the system is funded from general taxes. Waiting times, the availability of contracted providers and capacity vary by region and are affected by the war, which is why many employers add voluntary medical insurance with private clinics.

Voluntary medical insurance is the most widespread health benefit among larger Ukrainian employers. It buys access to private clinics alongside the public system, typically covering outpatient visits and diagnostics, hospital treatment, emergency care and often dental care, with telemedicine increasingly included. Employers commonly pay the full premium for the employee; cover for family members is offered by many employers, often at the employee's cost. Among IT specialists surveyed in December 2025, 49% had medical insurance through their employer, rising to 78% at companies with more than 1,000 staff and falling to 11% at those with up to 10. A 2025 survey of 126 employers across industries found voluntary medical insurance in most companies, frequently fully paid by the employer.

Premiums are exempt from personal income tax and the military levy up to 30% of the employee's salary and do not attract the unified social contribution, which makes insurance a tax-efficient benefit.

Mental-health support has become a visible benefit in Ukraine during the war. Employers offer access to psychologists, counselling platforms, employee assistance programmes and wellbeing apps, sometimes within medical insurance. Among IT specialists surveyed in December 2025, 22% had a mental-health programme through their employer. A 2025 survey of 126 employers found companies actively introducing psychological consultations and specialist platforms, although only 5% to 15% of employees used them.

Some Ukrainian employers pay towards gym memberships, sports clubs or other wellbeing activities, either as a fixed monthly compensation or within a flexible benefits budget. In December 2025, 27% of IT specialists received sport compensation from their employer. Such compensation is generally taxable income for the employee unless provided within a narrow statutory exemption.

Employees in Ukraine are insured against workplace accidents and occupational diseases through the unified social contribution; there is no separate employer premium. If an employee is temporarily unable to work because of a work accident or occupational disease, the employer pays sickness benefit at 100% of average earnings from the first day: the first 17 days from its own funds, and the rest financed by the Pension Fund of Ukraine. Insured people are also entitled to treatment and rehabilitation, monthly payments for lost earning capacity, and payments for special care.

If an employee dies, the family receives a one-off payment of 40 minimum wages (UAH 345,880 at the 2026 rate) and each dependant 8 minimum wages (UAH 69,176). Employers must investigate and record accidents under labour-protection law, and an employer found at fault can face additional civil liability.

Ukraine funds its state pension, temporary-disability, maternity, unemployment and work-injury insurance through one employer payroll levy, the unified social contribution. Employers pay 22% of each employee's gross pay, including bonuses and most benefits in kind; employees pay nothing, as the employee share was abolished in 2016. The base is capped: for 2026 the maximum monthly base is 20 minimum wages, UAH 172,940, so the maximum contribution is UAH 38,046.80 a month per employee. The statutory cap of 15 minimum wages is suspended for 2026 by the budget law. A minimum contribution of UAH 1,902.34 a month (22% of the minimum wage) applies where full-time pay would otherwise generate less. Employers pay a reduced 8.41% for employees with disabilities.

Contributions build the employee's insurance record for a state old-age pension from the Pension Fund of Ukraine. In 2026 a person may retire at 60 with at least 33 years of insurance record, at 63 with at least 23 years, or at 65 with at least 15 years. There is no separate compulsory funded pension contribution in force; voluntary non-state pension funds are an optional supplement.

Unemployment insurance is funded through the employer's unified social contribution. An insured person registered as unemployed qualifies if they have at least seven months of insurance record in the 12 months before registering. The benefit is a percentage of previous average earnings rising with total insurance record, from 50% for under three years to 80% for more than 30 years, paid in full for the first half of the benefit period and at half that rate afterwards. In ordinary times the period runs from 180 to 360 calendar days depending on insurance record, and the benefit may not exceed 1.5 minimum wages. People who resign without a valid reason or by mutual agreement wait 30 days before payment starts.

Under martial law, extended until 31 October 2026, the benefit is paid for no more than 90 calendar days (longer for people close to retirement age), may not exceed the minimum wage set on 1 January (UAH 8,647 in 2026), and starts from the day after unemployed status is granted. Payment stops if the person stays abroad for more than 30 days.

Ukrainian severance depends on the reason for dismissal, not on length of service. The employer pays at least one month's average earnings when the contract ends because of redundancy, reorganisation or liquidation, proven unsuitability through lack of qualifications or health, reinstatement of the previous job-holder, the employee's refusal to move with the business or to accept changed essential terms, or destruction of the means of production by hostilities. When an employee resigns because the employer breached labour law, the contract or a collective agreement, or failed to stop workplace bullying, severance is at least three months' average earnings, or more under a collective agreement. Dismissal of a company official whose powers are terminated carries at least six months' average earnings. When an employee leaves for conscription or alternative service, severance is two minimum wages, UAH 17,294 in 2026.

Collective agreements and contracts can set higher amounts. Dismissal during probation, for misconduct or by mutual agreement carries no statutory severance, but every leaver receives pay for unused annual leave. Employees mobilised into the armed forces during the special period keep their job and position instead of being dismissed.

Group life insurance pays a lump sum to an employee's beneficiaries if they die, and policies may add accident or disability benefits. It is offered by a minority of Ukrainian employers: a 2025 survey of 126 companies found that fewer than 20% provided life insurance, compared with most providing medical insurance. Where offered, the insured amount is usually set as a fixed sum or a multiple of salary in the employer's policy. Employer-paid premiums are generally taxable to the employee as income unless they fall within a specific exemption.

War-related support is a distinctive part of Ukrainian benefit packages. Employers keep jobs for mobilised colleagues, as the law requires, and some go further: in December 2025, 18% of IT specialists said their employer continued payments to mobilised colleagues and 9% provided equipment or gear, while 40% reported company donations or initiatives for the armed forces. In a 2025 survey of 126 employers, 38% had programmes supporting military staff and veterans. Employers of critical enterprises can also apply for 'reservation' of key staff, a deferment from mobilisation; 24% of male IT specialists in Ukraine had a reservation through their IT employer in 2026, but only 34% of employers communicated their reservation policy openly.

Employers can contribute to a voluntary non-state pension fund for employees as a supplement to the state pension. Contributions are exempt from personal income tax and the military levy up to 30% of the employee's salary, shared with any employer-paid medical insurance, and the fund's scheme rules set the contribution and when benefits can be drawn. Employer pension contributions are not a widespread benefit in Ukraine; the published employer benefit surveys reviewed do not list them among common benefits.

Every employee in Ukraine is entitled to at least 24 calendar days of paid annual leave per working year, counted from the start date. Under-18s receive 31 calendar days, employees with group 1 or 2 disabilities 30 days and group 3 26 days, and some sectors and hazardous jobs carry additional leave. In the first year the full entitlement can be taken after six months of continuous work; earlier leave is proportional. Leave may be split at the employee's request, but one part must be at least 14 calendar days. It is paid at average earnings before the leave starts, and every unused day is paid out when employment ends. In peacetime, public holidays falling within leave do not count as leave days, and unused leave must normally be taken within 12 months after the working year.

Under martial law, extended until 31 October 2026, the employer may limit annual leave to 24 calendar days for the current working year. Extra days for longer entitlements are carried forward and must be paid when taken after martial law ends; since a Constitutional Court decision of 19 May 2026 they may no longer be granted unpaid. Other paid leave above the annual basic leave may be granted unpaid at the employer's decision, except maternity, childcare and adoption leave. The employer may refuse unused leave days, may refuse any leave to staff working at critical infrastructure or on defence production, and holidays falling within leave are counted as leave days.

An employee who cannot work because of illness or a non-work injury receives temporary-disability benefit, based on an electronic sick note issued by a doctor. The employer pays the first five days from its own funds and the Pension Fund of Ukraine pays from the sixth day until the employee recovers or a disability is established; there is no fixed maximum length of benefit. Both parts are calculated at the same rate, which depends on the employee's total insurance record: 50% of average earnings for under three years, 60% for three to five years, 70% for five to eight years and 100% for more than eight years. Certain groups, including war veterans, receive 100% regardless of record. Monthly benefit is capped at the maximum contribution base (UAH 172,940 in 2026). Employees with less than six months of insurance record in the previous 12 months receive no more than the amount calculated from the minimum wage.

Sick days do not count as annual leave. After more than four consecutive months of incapacity (excluding maternity leave and work injuries), the employer may dismiss the employee. In peacetime an employer cannot dismiss someone during sick leave; under martial law, extended until 31 October 2026, it may, with the dismissal taking effect on the first working day after the sick leave ends.

Employees called up for military service during mobilisation or the special period, including reservists and those signing military contracts, keep their job and position with their employer until the special period ends or until their actual discharge. The employer does not pay salary during service: the serviceman receives military pay from the state budget. The guarantee also continues while the employee is in medical treatment after being wounded, is held captive or is missing. Employees called up may ask for payment of all unused annual leave when they leave for service. Failing to respect these guarantees is fined at four minimum wages per employee. Many employers also apply for 'reservation' of key staff, a deferment from mobilisation for employees of critical enterprises.

Ukrainian law gives employees a set of leave rights that the employer must grant on request but does not have to pay:
up to 10 calendar days when the employee marries;
up to 7 calendar days on the death of a spouse, parent, step-parent, child, stepchild or sibling, and up to 3 calendar days for other relatives, in each case plus travel time to the funeral;
up to 30 calendar days to care for a seriously ill relative who needs constant care;
up to 60 days a year for employees with group 1 or 2 disabilities and up to 30 days for old-age pensioners and people with group 3 disability.

Some leave is paid: combat veterans and people with war-related disabilities receive 14 calendar days of additional paid leave a year. War participants and families of fallen defenders may take up to 14 unpaid days a year, and people with special merit up to 21 days. Employers often go further by contract or collective agreement, for example paying for marriage or bereavement days. Under martial law, extended until 31 October 2026, additional paid leave such as veterans' leave may be made unpaid at the employer's decision and carried forward.

Insured employees receive temporary-disability benefit, paid from the first day by social insurance rather than the employer, when a doctor certifies that they must care for a sick family member. Care for a sick child under 14 is paid for up to 14 calendar days per illness, or for the whole hospital stay if the child is treated in hospital with the parent. Care for another sick family member is paid for up to three days, or up to seven in exceptional cases. A parent caring for a child under three or a disabled child under 18 because the usual carer is ill is paid for the whole period of the carer's illness. The benefit uses the same rate as sickness benefit, 50% to 100% of average earnings depending on insurance record. Benefit is not paid if the employee was on annual or study leave at the time.

Separately, employees may take unpaid leave of up to 30 calendar days to care for a seriously ill relative who needs constant care.

For family or other reasons, an employer and employee may agree unpaid leave of up to 30 calendar days a year. When there is a threat of armed aggression, an epidemic or an emergency, the employer may grant unpaid leave without that limit at the employee's request. Unpaid leave by agreement does not count towards annual-leave entitlement.

Under martial law, extended until 31 October 2026, the employer may grant unpaid leave of any length at the employee's request, and must grant up to 90 calendar days of unpaid leave to an employee who has gone abroad or become an internally displaced person and asks for it. Simplified-regime contracts may set longer unpaid leave by agreement.

Many Ukrainian technology employers give more paid time off than the statutory 24 calendar days. Among IT specialists surveyed in December 2025, 63% had more than 20 paid vacation days a year, 20% had fewer than 20 and about 3% had unlimited vacation; 57% also had paid public holidays off, which matters because holidays are not automatically days off under martial law. Employers add extra leave by contract or policy, for example days for seniority, birthdays or wellbeing, and contractors working as sole proprietors often receive paid days off by contract even though the law does not require it.

Beyond statutory sickness benefit, many Ukrainian technology employers pay for sick days themselves, often at full salary and sometimes without a doctor's note for short absences. Among IT specialists surveyed in December 2025, 43% had a limited number of paid sick days and 16% unlimited paid sick leave, so about 40% had none beyond what the law provides. This matters most for sole-proprietor contractors, who have no employer-paid sick leave by law, and for employees whose statutory benefit is below 100% of pay because of a shorter insurance record.

A pregnant employee is entitled to 126 calendar days of paid pregnancy and childbirth leave: 70 days before the birth and 56 days after it. For multiple births or complicated deliveries the total is 140 days, with 70 days after the birth. The leave is granted in full however many days were used before the birth, and with medical approval the employee may move part or all of the 70 prenatal days to after the birth. At her request the employer must add her annual leave immediately before or after it, regardless of time worked.

Pay is maternity benefit at 100% of average earnings for the whole leave, regardless of the length of insurance record, paid through the employer and financed by the Pension Fund of Ukraine. Monthly benefit is capped at the maximum contribution base (UAH 172,940 in 2026) and cannot be less than the amount calculated from the minimum wage; employees with less than six months of insurance record in the previous 12 months receive no more than the amount based on twice the minimum wage. Women who are not insured receive state maternity assistance instead. Pregnant employees cannot be dismissed by the employer except on liquidation, cannot be required to work overtime and, under martial law, cannot be required to work nights without consent. Maternity leave is protected from the martial-law power to make leave unpaid.

A father is entitled to a one-off paid 'leave on the birth of a child' of up to 14 calendar days, not counting public holidays, which must be taken within three months of the birth. It is available to a husband whose wife has given birth, to an unmarried father living with the mother, and, where the mother is a single parent, to a grandparent or other adult relative who cares for the child. Only one person can take it. The employee chooses the length in a written application and must provide the birth registration document within 30 days of starting the leave. It is paid by the employer at average earnings.

A husband may also take up to 14 calendar days of unpaid leave while his wife is on post-natal leave, and either parent may take childcare leave until the child turns three. Under martial law, extended until 31 October 2026, the employer may decide to grant this birth leave without pay, because only maternity, childcare and adoption leave are protected from that power; the employee keeps the days.

One parent with two or more children under 15, a child with a disability or an adopted child, a single mother, a father raising a child alone, a guardian or a foster parent receives 10 calendar days of additional paid leave every year, not counting public holidays, on top of annual leave. Where several grounds apply, the total cannot exceed 17 calendar days. The leave is paid at average earnings and unused days are paid out on dismissal.

Mothers or single fathers with two or more children under 15 or a disabled child may also take up to 14 calendar days of unpaid leave each year. Under martial law, extended until 31 October 2026, the employer may decide to grant the additional paid days without pay, with the days carried forward until after martial law.

An employee who adopts an orphaned child or a child deprived of parental care receives one-off paid adoption leave of 56 calendar days, or 70 days when adopting two or more children, not counting public holidays. It starts after the court's adoption decision takes effect, and the employee must apply within three months of that date. If spouses adopt, one of them takes it. The leave is paid at average earnings; where a newborn is adopted within two months of birth, the adoptive parent receives maternity benefit for the period from adoption to the end of the post-natal leave instead. Adoptive parents can also take childcare leave until the child turns three, and adoption leave is protected from martial-law rules allowing leave to be made unpaid.

After maternity leave ends, the mother or father may take childcare leave until the child's third birthday, in one block or in parts. Grandparents, other relatives who actually care for the child, adoptive parents and guardians may use it instead. Where a child needs home care on medical advice, one parent must be given further unpaid leave until the child turns six. The employer does not pay salary during the leave, although it may voluntarily offer partly paid or longer leave. Families receive state assistance from the Pension Fund instead: in 2026, UAH 7,000 a month for care of a child until the first birthday, and other assistance described separately.

The leave counts towards continuous service and insurance record but not towards annual-leave entitlement. Parents may work part-time or from home while on it, and must give 10 calendar days' notice of an early return. Employees on childcare leave, and women with children under three, cannot be dismissed by the employer except on full liquidation, and childcare leave is protected from martial-law rules allowing leave to be made unpaid or dismissal during leave.

Ukraine pays state family assistance through the Pension Fund of Ukraine, regardless of whether parents are employees or self-employed. For each child born after 31 December 2025, one parent receives a one-off birth assistance payment of UAH 50,000. The mother or another legal representative who cares for a child under one receives childcare assistance of UAH 7,000 a month in 2026 (UAH 10,500 for a child with a disability), starting the day after maternity leave or maternity benefit ends; families whose child was under one on 1 January 2026 also qualify from that date. For children born on or before 31 December 2025, the earlier birth assistance of UAH 41,280 continues: UAH 10,320 up front and the rest in monthly instalments.

Payments go to a special account linked to a Diia card. Amounts from 2027 will be set by the 2027 budget law.

Since 2026 Ukraine pays 'yeYasla' childcare assistance to a mother or other legal representative who has been caring for a young child and returns to full-time work. It is UAH 8,000 a month per child in 2026 (higher for a child with a disability), paid from the month after the child's first birthday until the month the child turns three. The money is paid by the Pension Fund of Ukraine to a dedicated account and must be spent on childcare, such as a nursery, kindergarten, nanny or other registered childcare provider; unspent funds can be used for 90 days after the child turns three. Amounts from 2027 will be set in the 2027 budget law.

Some Ukrainian employers enhance maternity provision beyond the state benefit, for example by topping up pay above the benefit cap, paying contractors for maternity leave or giving extra paid time. In December 2025, 23% of IT specialists reported a maternity-leave benefit from their employer. The state already pays 100% of average earnings for 126 days to insured employees, so employer enhancements mainly matter for high earners above the benefit cap and for sole-proprietor contractors.

A smaller group of Ukrainian employers offer paternity benefits beyond the statutory birth leave of up to 14 days, such as guaranteeing full pay for that leave under martial law, adding extra paid days or extending the benefit to contractors. In December 2025, 12% of IT specialists reported a paternity-leave benefit from their employer.

Some Ukrainian employers have added compensation for kindergarten or nursery fees to their benefit packages, usually as a monthly reimbursement within a benefits budget. A 2025 survey of 126 employers identified kindergarten compensation among the newer benefits companies are adding, alongside the state 'yeYasla' childcare assistance of UAH 8,000 a month introduced in 2026 for parents returning to full-time work. Employer reimbursements are generally taxable income for the employee.

Ukrainian law does not require a 13th-month salary, a year-end or holiday bonus, or a holiday pay premium. Annual leave is paid at the employee's average earnings without any uplift. Employers may promise bonuses in the employment contract, a bonus policy or a collective agreement; once promised on stated terms, they become contractual pay. Any bonus is taxed like salary, with 18% personal income tax and the 5% military levy withheld, and the employer pays the 22% unified social contribution on it.

Ukrainian employers use bonuses as part of total pay, alongside base salary and allowances. Year-end, holiday and performance bonuses are a competitive practice among IT and multinational employers, but measured provision among IT specialists is moderate: in December 2025, 24% received referral bonuses, 15% payments for personal events such as weddings or births, 13% periodic bonuses and 11% performance bonuses, while 40% received no cash benefits beyond salary. A 13th-month salary is not required by law; 22% of respondents in state institutions reported one. Bonuses are taxed and attract the employer contribution like salary, and become an entitlement only when the contract or a bonus policy promises them on stated terms.

Stock options and similar share-linked awards appear mainly in Ukrainian-founded startups and product companies with foreign holding structures. In December 2025, 12% of IT specialists at startups and 6% at product companies reported stock options or phantom shares, and such awards were rare elsewhere. Options are usually granted by a foreign parent company, often in the United States, under its plan; the plan sets the grant, vesting schedule, exercise price and leaver terms. Gains are generally taxed as income in Ukraine when the employee receives shares or sale proceeds.

Recognition in Ukrainian companies mostly takes the form of holiday gifts and certificates, team events and payments for personal milestones. In December 2025, 42% of IT specialists had corporate events or team building, 38% holiday gifts or certificates and 15% payments for personal events such as a wedding or birth of a child; 24% received referral bonuses for recommending new hires. Non-cash gifts are tax-free up to 25% of the monthly minimum wage, UAH 2,161.75 in 2026, while cash awards are taxed as salary.

A phantom equity award gives an employee a contractual right to a cash payment linked to the company's share value or a sale, without issuing shares. It suits Ukrainian teams of foreign-owned companies where granting real shares is complex. The award agreement defines the notional units, valuation formula, vesting, payment triggers and leaver treatment, and the payment is taxed as employment income with the employer contribution when paid. Employers in Ukraine use it alongside stock options; surveys combine the two, so its separate prevalence is not measured.

The Labour Code recognises remote work, performed anywhere the employee chooses using digital tools, under a written remote-work contract based on a standard form. The remote employee organises their own working time within the normal 40-hour limit and is guaranteed a 'disconnection' period when they may ignore work communications. The contract sets how equipment, software and data-protection tools are provided and how the employee is compensated for using their own equipment, internet and electricity; if it is silent, the employer must provide and maintain the equipment and pay the related costs. Remote and office work may be combined by agreement.

During a threat of armed aggression, an emergency or an epidemic, an employer may move staff to remote work by order without a separate remote-work contract. Pregnant employees, parents of a child under three and parents of two or more children under 15 or a disabled child have priority for remote work where the job allows it.

Employees who study part-time while working are entitled to paid study leave from their employer. Students at evening or distance higher-education institutions receive 10 to 40 calendar days a year for classes and exams, depending on their year of study and the form of study, 30 days for state examinations and two to four months to prepare and defend a diploma. Postgraduate students receive 30 days a year and may take one day a week at 50% pay for four years. Vocational students receive 35 days a year and secondary evening-school students 10 or 23 days for final exams. The leave is paid at average earnings. Under martial law, extended until 31 October 2026, the employer may decide to grant study leave without pay.

Remote work is the norm in Ukrainian technology: in December 2025, 69% of IT specialists worked fully remotely and 36% had hybrid arrangements, and 35% had flexible schedules; flexibility in schedule and location was the benefit respondents valued most. Fully remote work ranged from about 76% at companies with up to 10 staff to 69% at those with over 1,000, but only 33% in state employers. A separate mid-2026 survey of 14,631 IT specialists found 66% fully remote, with office-based work edging up to 13%. Employers combine remote work with coworking access, equipment and backup-power support, and the Labour Code requires a remote-work contract setting equipment and compensation terms.

Ukrainian employers invest widely in learning. In a 2025 survey of 126 employers across industries, 83% paid for training such as courses, conferences and language programmes. Among IT specialists in December 2025, 39% had employer-paid English courses, 33% internal training or mentoring and 29% access to external courses. Employers typically run an annual learning budget per employee or approve courses and certifications case by case, sometimes with a repayment clause if the employee leaves soon after an expensive course. Employer-paid training related to the job is not treated as taxable income for the employee.

Because of power cuts caused by attacks on energy infrastructure, Ukrainian employers have extended home-office support to backup power and connectivity: budgets for generators, power stations and batteries, and satellite internet terminals, alongside laptops, monitors and furniture. In December 2025, 28% of IT specialists received compensation for equipment. A 2025 survey of 126 employers identified budgets for generators or satellite internet among the benefits companies are adding. Under the Labour Code, an employer must provide equipment to remote employees, or compensate the use of the employee's own, unless the remote-work contract says otherwise.

A growing group of Ukrainian employers give staff a personal benefits budget, a 'cafeteria' model in which employees choose from options such as medical insurance top-ups, sport, learning, childcare or backup power. In a 2025 survey of 126 employers, 18% had introduced this model and a further 10% planned to expand or automate it in 2026. The same survey put average benefits spending at UAH 65,000 per employee a year, with a maximum recorded of UAH 395,000 (about US$9,600). Amounts drawn from a budget are taxed according to the benefit chosen.

Ukraine has no tax-favoured meal-voucher system, so employer-provided meals, food allowances and office lunches are a taxable benefit for the employee. Office-based employers often provide snacks, fruit and drinks; in December 2025, 34% of IT specialists had office snacks or fruit, while meal allowances or paid lunches are offered by some employers by policy.

Company cars and car or fuel allowances are used mainly for sales, field and senior roles, and for some expatriate packages. Private use of a company car or a cash allowance is taxable income for the employee, while costs of business use are documented as business expenses. Technology employers rarely include cars in standard packages.

Employers in Ukraine may pay for business mobile phones and internet or reimburse employees' costs. Business use documented under the remote-work contract or company policy is not a taxable benefit, while a flat allowance for private use is taxed as income. Mobile and internet allowances appear in some expatriate and remote-work packages.

Foreign employees in Ukraine have the same statutory rights as local staff, and expatriate packages may add housing, medical insurance, mobile and fuel allowances or meal stipends agreed in the contract. Employer-paid housing and allowances are taxable income for the employee unless provided because the job requires it. Expatriate assignments have been less common since 2022 because of the war.

Ukrainian law distinguishes an employment contract, under which a person performs work set by the employer within its working rules for a salary, from a civil-law contract for a defined service or result. Many technology professionals work as registered sole proprietors (FOP), known in Ukrainian as fizychna osoba-pidpryiemets, invoicing a client under a civil-law contract; about half of IT specialists surveyed in 2026 worked this way, down from 87% in 2022, while employment contracts and Diia City gig contracts have grown.

A genuine contractor receives no statutory paid leave, sick pay, notice or severance from the client. Indicators of employment include fixed hours, detailed supervision, integration into the team, work for a single client, employer-provided equipment and regular salary-like payments. If the labour inspectorate finds de facto employment without a contract and without paying the unified social contribution and taxes, the fine is ten minimum wages per worker (UAH 86,470 in 2026), rising to thirty minimum wages (UAH 259,410) for a repeat within two years, plus back taxes and contributions. Paying half the fine within ten banking days settles it. Contractor agreements typically define the scope, fees, schedule, termination, autonomy, tax responsibility and confidentiality, and state that no employment is created.

An employment contract in Ukraine is normally made in writing and must be written in specified cases, including remote or home-based work, contracts with an individual employer, minors, 'contracts' (a special fixed-term form with negotiated duties and termination terms) and whenever the employee asks. The employer must issue an order of employment and notify the tax authority of the hire before the employee starts; admitting someone to work without this is a serious breach. Contracts usually set the place of work, position and duties, pay and bonuses, working hours and leave, notice terms and the start date.

Indefinite contracts are the default. Fixed-term contracts are allowed when the work cannot be indefinite, for example temporary or seasonal work, or at the employee's request; a fixed-term relationship that simply continues becomes indefinite. Under martial law, extended until 31 October 2026, the parties may agree the contract form and employers may hire on fixed-term contracts for the period of martial law or to replace an absent employee.

Small and medium-sized employers with up to 250 staff, and any employer for employees earning more than eight minimum wages a month (above UAH 69,176 in 2026), may also agree a 'simplified regime' contract while martial law lasts. It sets hours, leave and termination terms individually, must be in Ukrainian and in writing, and must pay compensation when the employer ends it on a ground not listed in the Labour Code: at least half the minimum wage after up to 30 days' work, one minimum wage after more than 30 days, three after more than a year and five after more than two years. Employers process staff data under the Personal Data Protection Law and should record job titles in line with the national occupational classifier.

Employers in Ukraine must pay wages at least twice a month, at intervals of no more than 16 calendar days and no later than seven days after the end of the period being paid. Most employers pay an advance around mid-month and the balance at month end; the first-half payment must cover at least the time actually worked at the employee's rate. If a pay day falls on a weekend or holiday, wages are paid the day before. Pay for annual leave is due before the leave starts unless the contract or collective agreement says otherwise. Salaries are paid in hryvnias (UAH); senior contracts are sometimes indexed to US dollars and converted at the payment date.

On dismissal, all amounts due are paid on the last working day, or the day after the former employee asks if they were not at work that day, together with a written breakdown. Under martial law, extended until 31 October 2026, an employer that proves a delay was caused by hostilities is relieved of liability for late payment, but the wages remain owed and may be deferred until operations resume. The fiscal and tax year is the calendar year.

Ukraine's national minimum wage is UAH 8,647 a month and UAH 52 an hour from 1 January 2026, set by the State Budget Law for 2026. It applies to all employers and regions and covers full-time work for a full month; part-time pay is proportional. Pay below it is unlawful and fined at two minimum wages per affected employee. The minimum wage also drives other figures: the minimum and maximum unified social contribution, sole-proprietor tax amounts, severance on conscription (two minimum wages) and labour fines. The 2027 rate will be set in the 2027 budget law.

Market pay is far above the floor for professional roles: national statistics-based averages are around UAH 30,000 a month in 2026, and IT salaries are commonly quoted in US dollars.

The ordinary Labour Code limit is 40 hours a week, normally over five days with two days off; a six-day week may not exceed seven hours a day. Under-16s and 16-18-year-olds and some hazardous jobs have shorter weeks. Employees get a meal and rest break of up to two hours, usually four hours into the day and unpaid, and at least 42 hours of uninterrupted weekly rest, with Sunday as the general day off. Overtime is allowed only in listed exceptional cases, is capped at four hours over two consecutive days and 120 hours a year, and is paid at double the hourly rate; it cannot be replaced by time off. Pregnant employees, those with children under three, under-18s and students on study days cannot be required to work overtime. Night work earns at least 20% extra, and work on a day off is paid double or compensated with another day off.

Under martial law, extended until 31 October 2026, employers at critical infrastructure (defence, essential services and similar) may extend the normal week to 60 hours, paying proportionally more, or to 40 hours for staff entitled to reduced hours. Any employer may set a five- or six-day week and daily start and finish times, and weekly rest may be cut to 24 hours. The overtime caps, the ban on work on days off and the rule shortening the working day before holidays are suspended. Pregnant women, mothers of children under one and people with disabilities for whom it is medically contraindicated still cannot be asked to work nights without consent, and the 60-hour and 24-hour rules do not apply to minors. The ordinary rules return when martial law ends.

Probation is optional and must be agreed and stated in the employment order. Under the Labour Code it may last up to three months, up to six months in particular cases with the elected trade-union body's agreement, and no more than one month for manual workers. Days the employee did not actually work are not counted. In peacetime probation cannot be applied to, among others, under-18s, recent graduates, people with disabilities placed by referral, pregnant women, single mothers of a child under 14, people hired on fixed-term contracts of up to 12 months, temporary or seasonal staff and internally displaced persons.

If the employer finds the employee unsuitable during probation, it may dismiss them with three days' written notice and no severance; the employee can challenge the decision as a dismissal dispute. Staying in post after probation ends means the employee has passed it.

Under martial law, extended until 31 October 2026, probation may be set for any category of employee, including those normally exempt. At enterprises critical to the armed forces or the defence industry, probation for employees liable for military service is capped at 45 calendar days.

Ukraine has no at-will employment. Outside probation, an employer may dismiss only on a ground listed in the Labour Code, chiefly: redundancy, reorganisation or liquidation; proven unsuitability through lack of qualifications or health; repeated breaches after an earlier disciplinary sanction; absence without good reason for more than three hours in a day; appearing at work intoxicated; theft from the employer; absence through incapacity for more than four consecutive months (work injuries and maternity leave excluded); and reinstatement of the previous job-holder. For redundancy, unsuitability or reinstatement the employer must first offer other suitable work. Since 2022 the Code also allows dismissal where hostilities have destroyed the employer's means of production, and termination when an employee has been absent without any information for more than four consecutive months. A dismissed employee may challenge an unlawful dismissal in court and seek reinstatement and back pay.

Pregnant women, women with a child under three (under six where the child needs home care) and single mothers of a child under 14 or a child with a disability cannot be dismissed by the employer except on full liquidation, and then only with placement in new work. In peacetime the employer also cannot dismiss someone during sick leave or annual leave.

Under martial law, extended until 31 October 2026, an employer may dismiss an employee during sick leave or ordinary leave (but not maternity or childcare leave), with the dismissal date set to the first working day after it ends, and prior union consent is not required except for elected union officials. An absent employee whose workplace is in an area of active hostilities cannot be dismissed for absenteeism, although the absence is unpaid.

Notice in Ukraine depends on who ends the contract and why:
An employee may resign from an indefinite contract with two weeks' written notice. If the resignation is for a valid reason, such as moving, pregnancy, caring for a child under 14, retirement or the employer's breach of labour law, the employer must release them on the date they request.
For redundancy or other changes in the organisation of work, the employer must give each employee at least two months' personal written notice and offer any suitable vacancy; the two-month rule does not apply where the job disappears because of mobilisation measures or destruction of the business by hostilities.
Dismissal for unsuitability during probation needs three days' written notice. Termination by mutual agreement needs no notice, and dismissal for misconduct or other listed grounds takes effect without a notice period.

On termination the employer pays all wages due, compensation for every unused day of annual leave and any severance on the last working day. Under martial law, extended until 31 October 2026, an employee whose workplace is in an area of hostilities that threatens their life may resign on the date they choose, except where they have been assigned to critical infrastructure or compulsory public works.

An employer in Ukraine pays one payroll charge on top of salary: the unified social contribution of 22% of gross pay, capped at a monthly base of UAH 172,940 in 2026 (maximum UAH 38,046.80 a month), with a minimum of UAH 1,902.34 per full-time employee. From each employee's gross pay the employer withholds personal income tax at 18% and the military levy at 5%, 23% in total, and remits both; there is no employee social contribution. For example, on gross pay of UAH 100,000 a month the employer pays UAH 22,000 in contributions, withholds UAH 23,000 and the employee receives UAH 77,000.

The military levy rose from 1.5% to 5% on 1 December 2024 to fund defence. A 2026 amendment keeps it until 31 December of the third year after the year martial law ends. Corporate profit tax is 18% and the standard value added tax (VAT) rate is 20%. Diia City residents and their staff follow a separate reduced regime.

Most employer-provided benefits in Ukraine count as taxable income for the employee. The value of free housing, property use, meals, goods or services provided as a fringe benefit is taxed at 18% personal income tax plus the 5% military levy; for non-cash benefits the taxable value is grossed up by a factor of 1.21951, and cash allowances and bonuses are taxed and subject to the 22% employer contribution like salary.

Key exceptions: employer-paid voluntary medical insurance and non-state pension contributions are exempt from income tax and the military levy up to 30% of the salary accrued to that employee, provided the medical policy pays a healthcare provider and runs for at least a year, and these premiums do not attract the unified social contribution. Non-cash gifts are tax-free up to 25% of the monthly minimum wage, UAH 2,161.75 in 2026, while cash gifts are always taxed. Items supplied because the job requires them, such as work equipment and business travel costs within the statutory rules, are not a taxable benefit.

Collective agreements in Ukraine can add terms above the legal minimum, such as shorter hours, extra leave, higher severance or employer-paid benefits, and the Labour Code lets employers set some rules only with the elected trade-union body. Trade unions are lawful and many established employers have collective agreements; younger technology companies more often set terms in individual contracts and internal policies.

Under martial law, which is extended until 31 October 2026, an employer may propose pausing collective-agreement provisions that cover matters regulated by the martial-law labour law, but a pause needs the mutual agreement of the parties under the agreement's own procedure. The usual requirement to obtain prior union consent before dismissing an employee is suspended, except for elected union officials, and the union-law article on employer duties towards unions is paused. Once martial law ends, these suspensions lapse.

Diia City is an optional legal and tax regime for qualifying technology companies. A resident must, among other conditions, pay average monthly remuneration of at least the euro equivalent of EUR 1,200 and engage at least nine employees or gig specialists. Employees and gig specialists of a resident pay personal income tax at 5% instead of 18%, plus the 5% military levy, and the employer pays the unified social contribution at the minimum level (22% of the minimum wage, UAH 1,902.34 a month in 2026) rather than 22% of full pay.

A gig contract is a civil-law agreement specific to Diia City. It does not create an employment relationship, and disputes go to civil courts, but the law gives gig specialists some protections: an annual paid break of at least 17 working days after six months of continuous work, rest periods set in the contract, and pay that may be fixed in foreign currency. Residents can also use 'employment contracts' with individually negotiated duties and termination terms. The regime is used mainly by IT employers seeking an alternative to sole-proprietor arrangements.

Ukraine has been under martial law since 24 February 2022. Parliament has extended it in 90-day periods; Decree 1060/2026 extends the period from 05:30 on 31 October 2026 for ninety days, ending at 05:30 on 29 January 2027. While it lasts, the law 'On the organisation of labour relations under martial law' of 15 March 2022 temporarily overrides parts of the Labour Code for employers of every size and sector, including representative offices of foreign companies.

The main changes are: employers may extend the normal working week to 60 hours for staff at critical infrastructure and cut weekly rest to 24 hours; public holidays stop being days off; annual leave can be limited to 24 calendar days a year, with any extra days carried forward and paid after martial law ends; probation may apply to any new hire; fixed-term contracts may run for the period of martial law; and dismissal is allowed during sick leave or ordinary leave, with the dismissal date set to the first working day after it ends. Trade-union consent to dismissals is generally not required.

An employer or employee may also suspend an employment contract when the war makes work impossible for both sides. Suspension stops wages and other payments for up to 90 calendar days in total, longer only by agreement, and the employer must give 14 calendar days' notice before recalling the employee. Collective-agreement terms can be paused only by mutual agreement of the parties. The law expires when martial law ends; the ordinary Labour Code rules then apply again. Employers usually also plan for mobilisation of staff, power cuts and connectivity in their continuity arrangements.

Foreign nationals generally need a work permit, obtained by the employer from the regional employment centre, before working for a Ukrainian employer or a Diia City resident. The employer applies with a draft employment or gig contract, passport copy and photograph. Permits for ordinary employees last for the contract term up to two years; seconded workers and intra-corporate transferees can receive up to three years, and permits are renewable. The fee depends on duration: three subsistence minimums for up to six months (UAH 9,984 in 2026), five for six months to a year (UAH 16,640), eight for one to two years (UAH 26,624) and ten for two to three years (UAH 33,280). With the permit, the employee obtains a long-stay visa where required and a temporary residence permit. Foreign representative offices register foreign staff through accreditation instead. Wartime entry rules and the closure of some borders can lengthen the process.