--- title: "Ukraine Employer Cost Breakdown 2026 | USC 22%" description: "Ukraine: 22% Unified Social Contribution, flat 18% income tax, 24 days paid leave. Full line-by-line breakdown of hiring costs in Ukraine." canonical: https://www.teamed.global/country-hiring-guides/ukraine/cost-breakdown --- Ukraine · Cost breakdown child Served by Teamed vetted partner-entity network in Ukraine # How much does it really cost to *hire in Ukraine* in 2026? Ukraine's Unified Social Contribution (USC) sits at 22% on top of gross salary. Employees pay nothing on the USC side. Add a flat 18% personal income tax withholding obligation and 24 days of paid leave, and a Ukraine hire typically lands at around 120 to 125 percent of gross once every line is counted. Last reviewed 13 June 2026 · Ukraine guide ![An aerial view of Kyiv with the Dnipro River curving through the city and golden-domed churches catching late afternoon light.](/images/country-guides/ukraine-cost-breakdown.webp) Illustration · Kyiv, Ukraine Answer.cite this The main employer cost above gross salary in Ukraine is the Unified Social Contribution. The rate is 22% on gross remuneration. Employees pay no USC on their side. Income tax is a flat 18% on all employment income. A military levy also applies under wartime legislation at a rate set separately from the PIT. The employer withholds both and remits them promptly. Every employee gets 24 days paid leave days per year. The statutory minimum monthly wage is UAH 8,647/month. A typical Ukraine hire runs at around 120 to 125 percent of gross once the USC and leave costs are counted. ![A notepad of calculations on a desk in a Kyiv office, beside a cup of tea and a laptop showing a payroll screen.](/images/country-guides/ukraine-cost-breakdown-polaroid-1.webp) Adding it up ## The headline: what a Ukraine hire actually costs Start with gross salary. Add 22% USC on top. That is the primary employer-side statutory cost. The employee's 18% income tax and military levy come out of the employee's pay, not yours. The table below shows illustrative totals at a UAH 80,000 monthly salary. These are computed from verified statutory rates and labelled illustrative. They are not statutory figures. The structure is straightforward. Gross salary plus 22% USC is the core employer cost. Payroll is due twice a month under the [Labour Code of Ukraine](https://zakon.rada.gov.ua/laws/show/322-08?lang=en). | Line | Illustrative cost on UAH 80,000/month salary | Source | | --- | --- | --- | | Gross salary | UAH 80,000 | Contract | | Unified Social Contribution at 22% on gross | UAH 17,600 (illustrative) | [PwC Tax Summaries Ukraine 2026](https://taxsummaries.pwc.com/ukraine/individual/other-taxes) | | Income tax withheld at 18% (employee deduction) | UAH 14,400 (withheld from employee, not an employer cost) | [PwC: Ukraine taxes on personal income](https://taxsummaries.pwc.com/ukraine/individual/taxes-on-personal-income) | | Military levy withheld (wartime rate set separately from PIT; employee deduction) | Employee deduction; not an employer cost above gross | Law of Ukraine No. 4015-IX (December 2024) | | Statutory sick pay: first 5 days days employer-funded (illustrative reserve at 50% of daily rate) | ~UAH 3,500 (illustrative annual reserve) | [Torgsoft: Sick leave in Ukraine 2026](https://torgsoft.ua/en/articles/law/sick-leave/) | | **Total illustrative monthly employer cost** | **~UAH 97,600 before the Teamed fee** | **~122% of gross (illustrative)** | These figures are illustrative. They are computed from the 22% USC rate and 18% income tax rate confirmed for 2026. They are not statutory numbers and will vary with actual salary level, leave usage, and any benefits you provide. The USC has an upper monthly wage ceiling; salaries above the applicable ceiling attract USC only on earnings up to that ceiling. The exact ceiling is subject to conflicting sources for 2026. Verify the current figure with a local payroll adviser before budgeting at higher salary points. Add Teamed from $599 per employee per month and the total rises further. Use the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to run your own figures. 1. Start with gross salary Confirm the agreed gross monthly salary. Check it clears the minimum wage floor. This is the number every other line builds on. 2. Add Unified Social Contribution Apply the USC rate to the gross salary. This is the primary employer cost above gross. Check whether the salary sits above the monthly USC wage ceiling before finalising the budget. 3. Model income tax and military levy withholding Calculate the flat income tax rate on gross salary for monthly remittance. Confirm the current military levy rate with a local adviser. Both reduce the employee's net pay but are not additional employer costs above gross. 4. Allow for statutory leave and sick pay Budget annual leave days as salary cost during absence. Set aside a reserve for the employer-funded sick pay days. Both are predictable and easy to model in advance. 5. Include notice, severance, and collective rules If the hire might not work out, model the two-month redundancy notice period, the flat one-month severance obligation, and any collective redundancy notification costs that apply at your headcount level. ## Unified Social Contribution: the biggest line Employers in Ukraine pay USC at 22% on every hryvnia of gross remuneration. There is no employer matching pension on top. Employees pay no USC. The full 22% sits on the employer side. This is different from most European markets where the social contribution is split between employer and employee. PwC Worldwide Tax Summaries · Ukraine: Other taxes The Unified Social Contribution rate for employers is **22%** of gross remuneration. Employees are not subject to a separate USC charge. Source: [PwC Worldwide Tax Summaries: Ukraine Individual Other Taxes](https://taxsummaries.pwc.com/ukraine/individual/other-taxes) ### The USC wage ceiling Ukrainian law sets a monthly earnings ceiling above which USC is not charged on the excess. The ceiling is expressed as a multiple of the minimum monthly wage. The applicable multiple for 2026 is subject to a conflict between sources. PwC states the 15x figure as the operative cap for 2026; some domestic sources cite a higher 20x figure. The difference matters at higher salary points. Verify the current ceiling with a local payroll adviser before budgeting roles above UAH 100,000 a month. ### USC remittance timing USC is due at the time of each salary payment. Ukraine requires at least two payroll payments per month under Labour Code Art. 115. Each payment triggers a USC remittance. Income tax on cash payments must be remitted within 3 days banking days of payment. ### Who the employer pays USC to USC is collected by the State Tax Service of Ukraine and funds the Pension Fund plus social insurance branches. The employer files and remits directly. Teamed handles every USC filing, calculation, and remittance as part of the standard payroll service for Ukraine hires. ## Income tax and the military levy Ukraine uses a flat personal income tax (PIT) rate of 18% on all employment income. Every hryvnia of gross salary is taxed at the same rate. A military levy applies on top of PIT under wartime legislation. The levy rate is not held as a figure in the verified cache for this page. Verify the current rate with a local adviser before building a net-salary calculation. ### How PIT is calculated The 18% rate applies to all employment income from the first hryvnia. There is no tax-free personal allowance and no graduated bracket below this rate. The employer withholds PIT from the employee's gross pay each payroll cycle and remits it to the State Tax Service. | Monthly gross (UAH) | PIT rate | Illustrative monthly PIT withheld | | --- | --- | --- | | UAH 20,000 | 18% | UAH 3,600 (illustrative) | | UAH 50,000 | 18% | UAH 9,000 (illustrative) | | UAH 100,000 | 18% | UAH 18,000 (illustrative) | All PIT figures in this table are illustrative. They apply the 18% verified rate to the stated gross. They are not statutory figures and do not include the military levy or any other withholding that applies under separate legislation. ### Military levy Under wartime legislation, a military levy applies to employment income in addition to PIT. The rate was increased from 1.5% to a higher level from December 2024 under Law No. 4015-IX. The specific rate is not confirmed as a standalone figure in the verified cache for this page. Confirm the current rate with a Ukraine payroll specialist before modelling net-salary offers to candidates. ### Minimum wage reference The national minimum monthly wage is UAH 8,647/month, set under the Law of Ukraine On the State Budget of Ukraine for 2026. All contracts must pay at least this amount. An equivalent hourly minimum rate also applies under the same law; verify the current figure with the State Tax Service before setting any hourly-rate contract. ## Statutory leave: the cost most buyers miss Every Ukraine employee gets 24 days paid calendar days of annual leave per year under Labour Code Art. 75. Sick pay is employer-funded for the first 5 days days per absence. After those days, the state social insurance system takes over. ### Annual leave The 24 days statutory entitlement is expressed in calendar days, not working days. This is more generous than it first appears for roles with a standard 5-day week. Many technology and professional services employers in Ukraine provide 28 calendar days or more as a competitive benefit. Annual leave and public holidays are counted separately in Ukrainian law. ### Statutory sick pay The employer funds the first 5 days days of each illness period. The sick pay rate depends on length of service. Employees with fewer than three years of service receive 50% of their average daily salary. Longer-serving employees receive a higher percentage, up to 100 percent at eight or more years of service. After the employer-funded period ends, the Social Insurance Fund pays the remaining sick days. ### Maternity and parental leave Maternity leave runs for 18 weeks at 100% of average earnings. Payment comes from the Social Insurance Fund, not the employer. Paternity leave is 14 days paid calendar days under Law No. 1401-IX of 15 April 2021. Unpaid job-protected childcare leave is available until the child turns three. These are floors, not ceilings. ### Standard working week The maximum working week is 40 hours under Labour Code Art. 50. Overtime beyond that must be compensated at an enhanced rate. Budget the enhanced rate into any role where extended hours are expected. ## The costs nobody quotes you upfront Three things sit outside the standard 120 to 125 percent loading. Redundancy notice pay, the flat one-month severance obligation, and collective redundancy notification costs can all add up quickly if the hire does not work out. None of these are unavoidable. All of them can be modelled before the offer is made. ### Redundancy notice pay For employer-initiated redundancy, the Labour Code requires at least 8 weeks advance notice. The employee stays on payroll in full during that period. If you are restructuring a team, that is two months of full salary cost per head beyond the planned headcount. Budget it from day one. ### Flat redundancy severance On top of the notice period, Art. 44 of the Labour Code requires a severance payment of at least one average monthly salary on redundancy. This applies regardless of how long the employee has served. It is not a progressive formula that builds with tenure. One month, paid on the dismissal day, in addition to any notice-period salary. The same-day final pay rule under Art. 116 means there is no grace period for the employer to calculate and transfer the amount. ### Trade union consent For certain employer-initiated dismissals, Ukrainian law requires prior consent from the relevant trade union body under Labour Code Art. 43. Where a union is present, this adds a procedural step before the dismissal can take effect. Skipping it can invalidate the dismissal and expose the employer to reinstatement and back-pay liability. Teamed manages the procedural sequence for every Ukraine hire. ### Collective redundancy notification If your team reduction meets the collective redundancy threshold, the rules change. For a business with 20 to 100 employees, 10 or more dismissals within a 30 days-day window triggers the collective redundancy procedure. That means 60 days advance notice to both affected employees and the State Employment Centre under Labour Code Art. 49-4. That notification window sits on top of the normal 8 weeks notice each individual receives. ## How Teamed handles Ukraine employment costs for you Teamed becomes your legal [employer of record](/lp/employer-of-record) in Ukraine for [**from $599 per employee per month**](/pricing), with **zero FX mark-up** in any currency. Payroll, USC, income tax withholding, military levy remittance, and the full Ukraine employment compliance stack run on **one platform**. **Real HR and legal experts** handle your Ukraine hires from the first offer letter through every bi-monthly payroll cycle, USC filing, and annual leave calculation. **An actual person**, not a chatbot or a pooled queue. There is **no setup fee** and **no exit fee**. Every employer cost **passes through at cost, itemised** on every invoice. You see the USC line, the PIT line, and the sick pay line. Nothing is hidden inside the management fee. EOR payroll, contractor onboarding, and entity setup all live on **one platform**. A Ukraine contractor who converts to payroll keeps their record. That same employee can **graduate** from EOR to your own Ukraine entity without switching systems. EOR is the right structure for a first Ukraine hire, **until it isn't**. Teamed does not lock you in. Start from the Ukraine hiring overview or run the [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost) to see the full picture. ## Frequently asked questions What does it cost to hire someone in Ukraine in 2026? A Ukraine hire typically runs at 120 to 125 percent of gross salary in direct employer cost. The main line above gross is the Unified Social Contribution at 22% of gross remuneration. Employees pay no USC themselves. Income tax at 18% and a military levy are withheld from the employee's pay and are not additional employer costs above gross. Add the Teamed fee from $599 per employee per month for the full picture. What is the Unified Social Contribution rate in Ukraine in 2026? The USC employer rate is 22% on gross remuneration, confirmed under the Law of Ukraine On the Collection and Accounting of the Unified Social Contribution. Employees pay no USC. The rate applies up to a monthly earnings ceiling; the operative ceiling for 2026 is subject to conflicting sources so verify it with a local adviser before budgeting at higher salary points. What income tax does a Ukraine employer withhold? Ukraine uses a flat personal income tax rate of 18% on all employment income. There is no personal allowance. The employer withholds PIT plus a military levy from each payroll payment and remits both to the State Tax Service. The military levy rate was increased under wartime legislation from December 2024; confirm the current rate before modelling net pay. What statutory leave must a Ukraine employer provide? Every Ukraine employee gets 24 days paid calendar days of annual leave per year under Labour Code Art. 75. Sick pay is employer-funded for the first 5 days days of each absence. Maternity leave runs for 18 weeks at 100% of average earnings, funded by the state. Paternity leave is 14 days paid calendar days under Law No. 1401-IX. What severance must a Ukraine employer pay on redundancy? On redundancy, Ukrainian law requires at least one average monthly salary as a severance payment under Labour Code Art. 44. This applies regardless of tenure. The employer must also give at least 8 weeks advance notice. All final payments are due on the dismissal day itself under Labour Code Art. 116. Where a trade union exists, prior union consent may be required before the dismissal takes effect. Teamed Legal Operations The USC rate is the number clients focus on and it is fair to focus on it. But the ceiling is where the real variable lies. The operative ceiling for 2026 is genuinely contested between authoritative sources. At higher salary levels that gap is worth checking before you set the budget, not after the payroll runs. A note from Tom Price-Daniel Ukraine's 22% USC sits entirely on the employer side. The employee pays nothing toward it. Add the flat 18% income tax withholding obligation and 24 days paid leave days, and the total typically runs 120 to 125 percent of gross. Know the USC ceiling and the military levy rate before you send the offer. Tom Price-Daniel · Co-founder, Teamed ## Related Ukraine guides - Hiring in Ukraine, overviewparent - [Ukraine tax and payroll](/country-hiring-guides/ukraine/tax-and-payroll)sibling - [Ukraine termination and severance](/country-hiring-guides/ukraine/termination-and-severance)sibling - [Armenia employer cost breakdown](/country-hiring-guides/armenia/cost-breakdown)neighbour - [Serbia employer cost breakdown](/country-hiring-guides/serbia/cost-breakdown)neighbour - [Employer of Record overview](/lp/employer-of-record)core - [Pricing, Zero FX Fixed](/pricing)core - [Employer Cost Calculator](https://www.teamed.global/tools/employer-cost)tool - [Talk to an expert](https://www.teamed.global/contact)CTA A note on this page. This is a guide, not legal, tax or accounting advice. Rules change and vary by jurisdiction. Verify current requirements with the State Tax Service of Ukraine and the Ministry of Economy of Ukraine before relying on any specific figure. Worked examples in this guide are illustrative only and computed from statutory rates. They are not statutory figures. The USC wage ceiling for 2026 is subject to conflicting information across authoritative sources; verify the operative ceiling before budgeting at higher salary points. The military levy rate was increased under Law No. 4015-IX from December 2024; confirm the current rate with a local adviser.