Employer of Record in Ukraine

Hiring Employees in Ukraine in 2025–2026: Legal, But High-Risk Without EOR

Hiring employees in Ukraine remains fully legal, even during martial law and ongoing military conflict. Ukrainian labor legislation continues to operate, and companies are allowed to employ both local and foreign specialists without restrictions on remote work. However, hiring in Ukraine today involves additional layers of risk, including employee mobilization, strict currency controls, and evolving regulatory requirements. Employment disputes, contract enforcement, and force majeure scenarios are more complex to manage under wartime conditions. In this environment, relying on contractors or informal arrangements significantly increases legal and financial exposure. An Employer of Record (EOR) Ukraine provides the safest and most compliant hiring model, ensuring full legal employment, payroll continuity, and risk mitigation while allowing companies to operate in Ukraine with confidence.

Brain Source International helps you save time and reduce costs by allowing you to hire in Ukraine without establishing an entity. Our Employer of Record (EOR) solution handles onboarding, payroll, immigration, and benefits so you can hire your employees faster and grow your business compliantly.

What is an Employer of Record in Ukraine?

An Employer of Record (EOR) in Ukraine is a strategic partner that acts as the legal employer for your employees residing in Ukraine. The EOR takes on all employment responsibilities and liabilities on your behalf, handling payroll, benefits, taxes, and regulatory compliance.

By partnering with an EOR, you can hire employees in Ukraine without the need to establish a local entity or navigate complex labor laws.

In Ukraine, where employment law enforcement and wartime regulations add additional layers of complexity, an EOR significantly reduces legal and operational exposure.

EOR in Ukraine vs Contractors vs Local Entity

War-Related Employment Risks in Ukraine (And How EOR Mitigates Them)

Hiring in Ukraine during wartime is legal, but employment management requires additional safeguards. Martial law, mobilization rules, and financial controls create operational and legal risks that foreign employers must address carefully. An Employer of Record (EOR) Ukraine provides a structured and compliant framework to manage these risks.

Employer of Record (EOR) in Ukraine:
Key Aspects of the Ukrainian Labour Code

Minimum Wage

General: The minimum wage is 7,100 UAH per month.

The minimum wage will increase to UAH 8,000 as of  April 1^st 2024.

Payroll in Ukraine

Payroll Cycle: In Ukraine, the payroll cycle occurs bi-weekly, running twice a month from the 15th to the 20th and from the 31st to the 7th of the following month.

13th Salary: There are no provisions in the law regarding 13th salaries.

Taxation in Ukraine

Employer Payroll Contributions

Employee Payroll Contributions

Income Tax

Would you like to know the approximate cost of employment in Ukraine?

Working Hours

General: The standard workweek in Ukraine typically consists of 40 hours spread across five days. Alternatively, employers may choose to implement a six-day workweek with seven hours per day.

Overtime work in Ukraine is compensated and regulated based on employment contracts or collective agreements. When employees are required to work beyond standard weekly hours or on holidays, specific limits apply.

These limits include a maximum of 4 additional hours over two consecutive days and no more than 120 hours per year. Hours exceeding the standard 40-hour workweek are compensated at a rate of 200% of the regular hourly wage. Alternatively, overtime worked on a rest day can be compensated with another rest day in lieu of payment.

Certain categories of employees, such as pregnant women, those with children under 3 years old, employees under 18, and students, are prohibited from working overtime. Employers must obtain consent from women with children aged 3 to 14 and employees with disabilities before requiring overtime.

In cases of production disruptions due to accidents or to prevent production downtime, mandatory overtime may be necessary.

Leave

Annual Leave (Vacation):

Employees in Ukraine are granted a minimum of 24 calendar days of paid annual leave once they have completed at least 6 months of continuous employment. For minors and employees engaged in difficult or hazardous work, this entitlement may be extended. Unused annual leave days can be carried over and used in subsequent periods.

Public Holidays

Public holidays falling on weekends are moved to another day in lieu.

Sick Days

Employees in Ukraine are entitled to four months of paid sick leave. During this period, the employer covers the first five days of sick leave, with the remainder compensated by the Social Insurance Fund. The amount of compensation provided by the Social Insurance Fund depends on the employee’s length of service:
Fewer than six months of employment: payment based on minimum wage

• 0-3 years of employment: 50% of the employee’s average salary
• 3-5 years of employment: 60% of the employee’s average salary
• 5-8 years of employment: 70% of the employee’s average salary
• 8+ years of employment: 100% of the employee’s average salary

Maternity Leave

Maternity leave entitlement in Ukraine grants employees 126 paid calendar days off, with 70 days to be taken before the estimated due date and 56 days after childbirth. In cases of multiple births or complicated deliveries, maternity leave extends to 140 days.

During maternity leave, the Social Insurance Fund provides compensation equivalent to 100% of the employee’s average salary, subject to a maximum base salary set by the Social Single Fee.

Paternity Leave

In Ukraine, there is no provision for paid paternity leave. However, fathers can take up to two weeks of unpaid leave upon the birth of a child. Additionally, fathers have the option to use leave from the mother’s maternity period if she has resumed working. To do so, fathers must apply to their employer and submit a copy of the child’s birth certificate, a document confirming their familial relationship, and a certificate from the mother’s workplace verifying her return to work.

Parental Leave

After maternity leave ends, mothers, fathers, and grandparents can take unpaid parental leave until the child turns 3 years old.

Other Leave

Depending on the collective agreement or the terms of the employment contract, employees in Ukraine may be eligible for additional types of leave, subject to approval by mutual agreement between the employer and the employee.

• Bereavement: An employee is entitled to bereavement leave of up to 7 days for the death of an immediate family member.
• Marriage: An employee is entitled to 10 days of leave in the event of their wedding.
• Study: Employees are entitled to paid study leave which is compensated by the employer. The length of the leave is dependent on the duration of the exam period.

Why Choose Brain Source International as Your Ukraine EOR

Brain Source International operates as a service-driven Employer of Record, not a self-service SaaS platform. This means every engagement is managed by experienced professionals who understand local employment realities, rather than automated workflows designed for generic use cases.

Our EOR model is human-led, with direct involvement from legal, payroll, and HR specialists who actively manage employment, compliance, and risk throughout the employee lifecycle. This approach is especially critical in jurisdictions where labor law enforcement, documentation, and regulatory interpretation require local expertise.

With a long-standing focus on Eastern Europe, Brain Source International brings region-specific knowledge that global platforms often lack. We understand local labor practices, regulatory nuances, and the operational challenges faced by international companies hiring in the region.

We have hands-on war-time hiring experience in Ukraine, supporting companies through periods of disruption, relocation, infrastructure instability, and regulatory changes. This experience allows us to anticipate risks and implement compliant solutions before issues escalate.

Finally, our approach is built on real hiring cases, not abstract frameworks. We work with companies hiring in Ukraine today, addressing practical challenges related to contracts, payroll continuity, workforce availability, and compliance under martial law.

How an Employer of Record (EOR) in Ukraine
Simplifies and De-Risks Employment

This is where an Employer of Record (EOR) in Ukraine becomes an indispensable strategic partner. An EOR provides a compliant and efficient solution by acting as the official employer for your team members in Ukraine. This model allows you to hire top professionals without the burden of establishing a local legal entity, managing complex payroll processes, or navigating dynamic labor regulations.

The EOR takes on all administrative and legal responsibilities, including drafting employment contracts compliant with Ukrainian labor law, handling tax withholdings, and managing social security contributions. This ensures your operations remain fully compliant with Ukrainian regulations while reducing risks for your business.

At the same time, you maintain complete control over the day-to-day activities of your employees, while the EOR manages the administrative heavy lifting.

FAQs for Employer of Record in Ukraine

What is an Employer of Record in Ukraine and how does it work?

An Employer of Record in Ukraine is a local legal entity that hires employees on behalf of a foreign company and assumes full responsibility for compliance with Ukrainian employment regulations. The EOR becomes the official employer, while the client company manages the employee’s day-to-day work. This model allows businesses to hire employees in Ukraine without setting up a local entity, while remaining fully compliant with Ukraine employment law, payroll rules, and tax regulations.

Is hiring in Ukraine legal during the war?

Yes, hiring in Ukraine remains legal, even under martial law. Ukrainian labor legislation continues to operate, and companies are allowed to hire both local and foreign employees, including remote workers. However, hiring in Ukraine during wartime involves additional risks such as mobilization rules, currency controls, and force majeure scenarios. An EOR in Ukraine helps companies manage these risks compliantly and maintain employment continuity.

Can foreign companies hire employees in Ukraine without opening a local entity?

Yes. Foreign companies can hire employees in Ukraine without establishing a local legal entity by using an Employer of Record. The EOR handles employment contracts, payroll, taxes, and compliance, while the client company focuses on operations. This is the fastest and lowest-risk option for companies entering the Ukrainian market.

Is it possible to hire remote employees in Ukraine through an EOR?

Absolutely. Many international companies hire remote employees in Ukraine across IT, sales, operations, and support roles. An Employer of Record enables compliant remote hiring by issuing locally compliant employment contracts, managing Ukraine payroll, and ensuring adherence to labor regulations—even when employees work remotely from different regions or relocate abroad.

How does Ukraine employment law affect foreign employers?

Ukraine employment law is employee-protective and highly formalized, covering contracts, working hours, leave entitlements, termination rules, and social contributions. Non-compliance can lead to fines, back payments, and legal disputes. By using an Employer of Record in Ukraine, foreign employers transfer legal employer responsibilities to a local expert who ensures full compliance with labor law and regulatory updates.

How does Ukraine payroll work under an Employer of Record model?

Under an EOR model, Ukraine payroll is fully managed by the Employer of Record. This includes salary calculations, tax withholding, social contributions, and statutory reporting. Payroll is typically processed twice per month, and employers must comply with income tax (18%), military levy (1.5%), and employer social contributions (22%). An EOR ensures accurate and timely payroll execution, even during banking or infrastructure disruptions.

Is using an EOR in Ukraine safer than hiring contractors?

In most cases, yes. The comparison between Ukraine contractors vs employees is critical. Contractors are often misclassified, which can trigger tax penalties and employment claims. An EOR in Ukraine provides a fully compliant employment structure, reducing misclassification risk and ensuring proper adherence to labor and tax regulations—especially important during wartime enforcement.

How does an EOR mitigate war-related employment risks in Ukraine?

An EOR in Ukraine during the war helps mitigate risks related to mobilization, employee relocation, payroll continuity during blackouts, and currency restrictions. The EOR manages compliance, documentation, and payroll locally, ensuring that employment remains lawful and operational even under martial law conditions.

Who should consider using an Employer of Record in Ukraine?

Companies expanding into Eastern Europe, hiring remote teams, or testing the Ukrainian market should consider an Employer of Record. An EOR Ukraine solution is particularly suitable for businesses that want speed, compliance, and risk mitigation without the complexity of setting up and maintaining a local entity.