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Get expert helpUkraine might already be on your radar, and for good reason. You’ve probably heard about the deep bench of tech talent in Kyiv, the design creativity coming out of Lviv, or the finance pros who can navigate global systems and local nuances. But once you start looking into hiring, it gets tricky.
This guide gives you the play-by-play. No fluff, just what you need to hire and pay people in Ukraine the right way, without getting tangled in legal surprises. Whether you’re thinking about hiring contractors, full-time employees, or working through an Employer of Record (EOR), we’ve got you covered.
Step-by-step preparation before hiring in Ukraine
Before anyone signs on, you’ve got a few key decisions to make. Let’s start with the basics.
1. Decide how you want to hire
You’ve got three main paths here:
Hiring through your own Ukrainian entity
This is for companies ready to build a long-term presence. You’ll need to register locally, set up payroll, and stay on top of Ukrainian labor laws. Great for scale, but it’s a heavy lift.
Working with contractors
Faster, more flexible, and ideal for short-term or project-based roles. Just be careful. If your contractor looks and acts like an employee, local authorities might say they are one—and that could mean penalties. For more guidance, check out What is Misclassification?.
Using an EOR
This is the low-lift, high-safety option. An EOR like Pebl becomes the legal employer on paper, handles compliance, payroll, and benefits, and lets you focus on working with your new hire.
2. Know the work permit rules
Hiring someone from outside Ukraine? You’ll need a work permit from the State Employment Center. Usually valid from six months to three years, the application includes proof of education, job details, and a draft contract. If you’re using an EOR, they’ll handle this for you.
3. Register as an employer
Here’s what needs to happen before you can legally hire anyone:
- Register your company with the Unified State Register
- Open a Ukrainian bank account
- Register with the tax authorities and pension fund
This can take a few weeks. Most companies partner with local experts to speed things up and get it right.
4. Plan for employer tax costs
Hiring in Ukraine means contributing to the system. Here’s what to expect:
- 18% Personal Income Tax (PIT)
- 22% Unified Social Contribution (USC) paid by the employer
- 1.5% Military Tax, withheld from the employee
Quick math: Paying ₴15,000/month? Budget at least 30% more to cover your contributions.
5. Writing compliant contracts and setting pay correctly
A contract from your home country won’t cut it. Ukrainian labor law has its own rules, and skipping them could mean invalid agreements.
Pick the right contract type
- Employment contract. Required for full-time or part-time hires. Must be in Ukrainian. Needs to include title, salary (in Hryvnia), job duties, working hours, leave policy, and how termination works.
- Service agreement (for contractors). This is a business-to-business deal. Outline the deliverables, payment terms, and ownership of work. If you’re setting the schedule and providing the tools, that’s a red flag for misclassification.
What to include in a Ukraine-ready contract
- Salary in Hryvnia (UAH), even if you’re paying in another currency
- Clear holiday and leave allowances
- Standard notice periods: 2 weeks during probation, 1 month afterward
- Confidentiality and IP terms (especially for tech and creative roles)
Tip: Have a Ukrainian legal expert review it. It’s worth it.
6. Setting up payroll and paying workers in Ukraine
Payroll in Ukraine isn’t just about paying on time. You’ve also got to file taxes, report contributions, and hit monthly deadlines.
Set your calendar
Most employers pay monthly or semi-monthly. Here are the big dates:
- By the 20th: Unified Social Contribution filing and payment
- By the 30th: PIT and Military Tax filings
Missing these dates? That’ll cost you in penalties and stress.
Choose how to pay
- Employees. Must be paid into local Ukrainian bank accounts in Hryvnia. Your bank handles the currency exchange.
- Contractors. Can accept payments into Ukrainian or foreign accounts. Services like Wise, Payoneer, and SWIFT are common. Just make sure you have solid documentation.
Don’t go it alone
Local payroll providers or EORs can take this off your plate. Learn more about how global payroll works when using an EOR.
7. Staying compliant with labor laws in Ukraine
Ukrainian labor law is clear and protective of workers. Here’s what to keep on your radar.
Benefits and time off
- 24 calendar days of paid vacation minimum
- Paid sick leave (you cover the first 5 days)
- 126 days paid maternity leave; up to 3 years unpaid leave available
Hours and overtime
- 40-hour workweek (8 hours/day)
- Overtime paid at 2x rate, limited to 120 hours per year
Probation and termination
- Max probation: 3 months
- Standard notice: 2 weeks during probation, 1 month otherwise
- Dismissals must follow legal process. Severance may apply
Stay updated
Regulations shift often. Minimum wage changes? New tax rules? Keep an eye on the Ministry of Economy of Ukraine or subscribe to a local legal update.
How an EOR ensures a smooth setup
Hiring in Ukraine isn’t something you want to wing. A few things will help:
- Use contracts drafted for Ukrainian law
- Keep a local payroll calendar with built-in tax deadlines
- Follow updates from labor and tax authorities
If you’re looking for a faster, safer route, this is where an Employer of Record (EOR) makes a real difference. An EOR acts as the legal employer on your behalf. That means:
- Your team is fully compliant with local laws
- Payroll and taxes are handled for you
- You can focus on the work, not the paperwork
Pebl does all of that, and more.
Get it right from day one
Hiring in Ukraine isn’t hard if you follow the right steps. When you:
- Pick the right hiring model
- Get contracts reviewed. Build a solid payroll process
- Stay up-to-date on labor law
You avoid headaches, protect your team, and set your global hiring strategy up for success. For more country-specific guidance, see other hiring guides in our Global Hiring + Pay series.
How Pebl helps you hire in Ukraine
Hiring in Ukraine can sometimes feel like a legal maze—lots of options, lots of pitfalls, and there are no second chances. You have to get it right the first time.
Pebl can lead the way.
Our global employer of record service makes it easy to hire in Ukraine without the red tape. We handle the paperwork, payroll, taxes, benefits, and compliance from day one. You get top talent, fully supported, and no delays.
Whether you’re onboarding a UX lead in Lviv or a developer in Dnipro, you can hire confidently without opening an entity. We’ve got teams up and running in Ukraine and 185+ countries worldwide.
When you’re ready to start hiring, let’s talk.
This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.
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