Budgeting a foreign hire in Ukraine is simpler than most employers expect, because the system is flat. Here is exactly who pays what in 2026, with a worked example.
- Withheld from the employee: 18% income tax + 5% military levy = 23% of gross.
- Paid by the employer on top of gross: 22% Unified Social Contribution. The employee pays 0% social contribution.
- Non-residents are taxed the same 18% + 5% on Ukrainian-source employment income.
- Income tax, military levy and the social contribution are reported and paid monthly.
Who pays what: the short version
| Component | Rate | Borne by |
|---|---|---|
| Personal income tax (PIT) | 18% | Employee (withheld) |
| Military levy | 5% | Employee (withheld) |
| Unified Social Contribution (USC) | 22% | Employer (on top of gross) |
Personal income tax (18%)
Ukraine applies a flat 18% personal income tax to employment income. There are no progressive brackets, which makes payroll predictable. The tax is withheld by the employer and remitted monthly.
Military levy (5%)
A military levy applies on top of income tax. Under martial law it was raised from 1.5% to 5% on 1 December 2024, so the combined withholding on employment income is now 23%. Treat the 5% as a current wartime rate that could change.
Unified Social Contribution (22%)
The Unified Social Contribution funds state social insurance. Crucially, it is paid entirely by the employer at 22% of gross salary and does not reduce the employee's net pay. This is unusual in Europe, where social contributions are typically split, and it makes the headline cost to the employer easy to model.
A worked example
For a gross monthly salary of 40,000 UAH:
| Line | Amount (UAH) |
|---|---|
| Gross salary | 40,000 |
| Income tax (18%) | -7,200 |
| Military levy (5%) | -2,000 |
| Employee net | 30,800 |
| Employer USC (22%, on top) | +8,800 |
| Total employer cost | 48,800 |
So the worker takes home 30,800 UAH, while the total cost to the employer is 48,800 UAH.
Employer obligations
- Register as an employer and run compliant monthly payroll.
- Withhold and remit income tax and military levy each month.
- Pay the 22% USC each month.
- File the required monthly payroll and tax reports.
- Keep the work permit, contract and residence documents current.
The military levy in particular is a wartime measure and rates are revised periodically. Confirm the current figures with the State Tax Service or a Ukrainian accountant before finalising budgets or contracts.
New to hiring in Ukraine? Start with how to hire foreign workers in Ukraine and work permits explained.
Frequently asked questions
What is the total tax on a foreign worker’s salary in Ukraine? +
Employees have 18% personal income tax plus a 5% military levy withheld (23% total) from gross pay. On top of gross, the employer pays a 22% Unified Social Contribution. Non-residents are taxed the same 18% + 5% on Ukrainian-source employment income.
Does the employee pay social contributions? +
No. The Unified Social Contribution of 22% is paid entirely by the employer and does not reduce the employee’s net salary. This is unusual among European countries.
Planning a cross-border hire?
Tell us the roles you need. We handle sourcing, work permits, and onboarding end to end.
Talk to us