Ukraine is an Eastern European country that borders Russia, Belarus, Poland, Slovakia, Hungary, Romania, and Moldova. It has a workforce of 20.5 million people (2021), and a GDP of 178.7 billion US dollars (2023).

The war between Russia and Ukraine starting in 2022 resulted in a 30% decrease in Ukraine’s GDP, with the war having an impact on global trends such as inflation, poverty, food insecurity, and deglobalization. However, despite uncertainty, there are signs that Ukraine’s economy is improving, with employers being attracted to their highly-skilled, cost-effective workforce – particularly in the tech sector.

This help guide will provide information on Ukrainian labor law, giving an overview of mandatory benefits that employers must provide such as set working hours, overtime rates, maternity/paternity leave, annual paid leave, and social security contributions. We’ll also provide information on how Remote People can help companies stay compliant with Ukraine’s labor laws through our Employer of Record (EOR) services and local recruitment support.

Ukraine Employment Laws

The Labor Code of Ukraine was adopted in the Soviet period in 1971 and was re-issued after Ukraine became independent in 1991.

The code signifies the right to work, ensured by the state, and to freely choose a profession that offers an established minimum wage. It is designed to offer protection to both employees and employers, setting out rules on topics such as working hours, paid annual leave, overtime rates, and parental leave.

Employees working within Ukraine under a resident or non-resident company are covered under Ukrainian labor law.

Mandatory Employee Benefits in Ukraine

There are a number of mandatory employee benefits that the Ukraine labor law sets out, and requires employers to offer their employees.

Social Security

Ukraine follows a Social Security system which was initiated after Ukraine claimed independence. This system allows employees to qualify for certain benefits including:

  • Old-age pension/benefits
  • Sick pay
  • Maternity Pay
  • Unemployment benefit
  • Workplace injury benefit
  • Family allowance

Employers in Ukraine are required to pay social security contributions on behalf of their employees, at a rate of 22%.

Annual Paid Leave

All Ukraine employees are entitled to paid annual leave. 

This equates to 24 calendar days of paid vacation time, with additional leave requestable by certain categories of employees such as teachers or civil servants.

Employees can also request unpaid leave for personal reasons, which is approvable at the discretion of the employer.

Working Hours

The maximum number of hours an employee in Ukraine can work is 40 hours per week, generally divided into either 5 or 6 working days.

Employees working in critical infrastructure such as energy, transport, or water may be permitted to work up to 60 hours per week.

National Minimum Wage

The minimum wage in Ukraine is UAH 8,647 per month (2026). 

This is established by recommendations from the Cabinet of Ministers in Ukraine and is set to establish a basic standard of living for employees, taking into account inflation, employment level, and the average wage rate.

Overtime Pay

Overtime pay for employees in Ukraine is only permitted in particular circumstances.

If overtime work is carried out on a weekday, it must be paid at double the rate of an employee’s regular salary. If an employee performs overtime on a day off, it’s often recommended that the employee receives another day off instead of overtime pay.

Paid Public Holidays

The government of Ukraine issues public holidays each year, which are paid and considered separate from paid annual leave. The public holidays in Ukraine are as follows:

  • New Year’s Day (January 1)
  • Women’s Day (March 8)
  • Orthodox Easter Sunday (April 20) (date varies)
  • Orthodox Easter Monday (April 21) (date varies)
  • Labor Day (May 1)
  • Day of Remembrance and Victory over Nazism (May 8)
  • Orthodox Whit Sunday (June 8) (date varies)
  • Orthodox Whit Monday (June 9) (date varies)
  • Constitution Day (June 28)
  • Ukrainian Statehood Day (July 15)
  • Independence Day (August 24)
  • Defender’s Day (October 1)
  • Christmas Day (December 25)

Paid Sick Leave

Ukraine’s Social Security System provides access to sick leave for employees who are unable to work due to sickness/injury.

Employees must provide a certificate from a doctor or medical professional to be eligible for sick pay, and generally, the employer covers the first 5 days of sickness. The Social Insurance Fund provided by Social Security covers the remaining time.

Typically, sick leave is limited to a maximum of 4 months.

Maternity Leave

Female employees in Ukraine receive 126 calendar days of paid leave when they have a baby. This is usually taken 70 days before the birth of the child and 56 days after the child is born.

Employees can choose to extend their maternity leave to 140 calendar days if they have experienced complications related to childbirth (e.g. a caesarian section delivery).

Maternity leave is paid at the full level of the employee’s average wage and is compensated in full by the Social Security system. 

Paternity Leave

Male employees are entitled to paternity leave when their partner/spouse has a baby.

Paternity leave in Ukraine consists of 14 days of unpaid leave, which is typically taken after the child is born. This leave may be paid at the discretion of the employer, but this won’t be recompensated by Social Security.

Parental Leave

Both male and female employees in Ukraine are entitled to take unpaid parental leave until their child reaches the age of 3. They can maintain job guarantees and other benefits while taking parental leave, protecting their job while they’re away.

Pensions

Men and women in Ukraine can retire from the age of 60, provided that they have completed at least 30 years of service.

The minimum length of service is due to increase by one year each year. The Ukraine government is also planning a secondary-funded pension level, but this has not yet been released.

Employers must contribute 22% of the employee’s gross salary towards their pension plan. The employee’s contribution is set at a fixed deduction from their salary each month.

Severance Pay

Employers are required to pay their employees severance pay in circumstances of unplanned dismissal.

Severance pay is typically paid at one average monthly salary. This is calculated by taking an average of the last two calendar months before the dismissal of the employee.

The amount of severance pay is generally decided based on the employee’s length of service and the reason for the termination.

Supplementary Employee Benefits in Ukraine

It’s recommended that employees receive supplementary benefits in addition to mandatory benefits to provide extra motivation and improve staff retention. Supplementary employee benefits are also a powerful way of attracting potential employees to your business.

Some examples of supplementary employee benefits include:

  • Flexible working opportunities
  • Performance bonuses
  • Medical insurance
  • Access to training courses
  • Enhanced pension/parental leave packages
  • Compensation for transport, food, and housing

Optimize Employee Benefits with Remote People

Remote People can help companies optimize employee benefits and ensure compliance through our Employer of Record (EOR) services in Ukraine.

These services can make hiring employees in Ukraine a simpler, more efficient process, reducing the risk of error and stress. A qualified, experienced EOR provider fully understands Ukraine’s labor laws and taxation process, giving you peace of mind that these important factors are covered when employing in Ukraine.

Simplify your expansion with Remote People’s Ukraine Employer of Record (EOR) service. We handle the complexities of hiring, from onboarding and payroll to compliance with Ukrainian labor laws—so you can hire quickly, stay compliant, and focus on growing your business.

Remote People are also experienced in finding the best talent for your business via their Ukraine recruitment services. You can gain access to a pool of qualified people who can help take your business to the next level.