Employer of Record in Ukraine

How hiring through an employer of record works in Ukraine

The local employer signs the Ukrainian contract and runs payroll while your managers direct the work. Labour Code Article 24 makes a written contract the rule and bars anyone starting before the employer's hiring order and a hire notification to the tax authority. Martial law lets the parties agree the form of contract (Law 2136-IX, Article 2).

Employer costs and contributions in Ukraine

The employer pays the single social contribution, ESV, at 22% of each employee's accrued pay (ESV Law, Article 8). When a month's base is below the minimum wage, the employer still owes a minimum monthly contribution of UAH 1,902.34 for 2026 (22% of UAH 8,647). The 2026 Budget Law sets the base ceiling at twenty minimum wages, UAH 172,940 a month, and ESV is due by the 20th of the next month. The employer also withholds and remits the employees' 18% income tax and 5% military levy under the Tax Code.

Martial law rules every Ukrainian employer works under

Law 2136-IX of 15 March 2022 covers all employers, including representative offices of foreign businesses, while martial law lasts, and displaces ordinary labour rules where it regulates a matter.

• Hours: weekly hours may rise to 60 in critical infrastructure with proportionate pay, and Article 6(6) disapplies the overtime cap, weekend work ban and public holiday rules (Labour Code Articles 65(1), 71 and 73).
• Leave: the employer may cap annual main leave at 24 calendar days, carry the rest over, refuse unused days and pay cash on dismissal. The Constitutional Court held on 19 May 2026 (No. 3-r/2026) that giving the extra days unpaid is unconstitutional for employees under 18 and with disabilities (Article 12).
• Suspension: where armed aggression makes work impossible for both sides, either party may suspend the contract for up to 90 calendar days in total, extendable by agreement, with no wages due meanwhile and no use as a hidden penalty (Article 13).
• Dismissal and pay: union consent under Article 43 is waived except for elected union officers, dismissal can be issued during sick leave or leave, dated the first working day after it ends (not maternity or childcare leave to age three), and hostilities excuse late pay though wages stay owed (Articles 5 and 10).

Working time, leave and pay rules in Ukraine

• Hours: 40 a week. Overtime is for listed exceptional cases, paid double for hourly workers and not replaceable with time off (Labour Code, Articles 50, 62 and 106).
• Leave: at least 24 calendar days of annual leave, 31 under age 18 and 26 to 30 with disabilities (Law on Leave, Article 6), plus nine public holidays (Labour Code, Article 73), which are working days while martial law lasts.
• Parental leave: 70 days before and 56 after birth, then childcare leave until the child is three (Law on Leave, Articles 17 and 18).

Probation, notice and dismissal in Ukraine

Probation runs up to three months, six with union agreement, and one month for manual workers (Labour Code, Article 27); martial law allows it for any category. Unfitness found in probation allows dismissal on three days' written notice (Article 28). Employees resign on two weeks' written notice (Article 38). Employer dismissal is limited to the closed grounds in Article 40, and a redundancy needs two months' notice, an offer of other work and severance of at least one month's average earnings (Articles 49-2 and 44).

Military reservation and mobilised employees

Employees called up under mobilisation keep their job and position until discharged or the special period ends, with military pay from the State Budget (Labour Code, Article 119(3)).

Reservation (bronyuvannia) defers call-up for staff liable for service at employers with mobilisation tasks or designated critical, and the employer arranges the deferral at the recruitment centre (Law on Mobilisation, Article 25). Under Cabinet Resolution 76 of 2023, most private employers must meet three or more listed tests, always including no tax arrears and an average insured wage of at least three times the minimum wage.

Getting paid in stablecoins, USDC, USDT, tokens and crypto in Ukraine

Short answer: No. Article 23 of the Law on Remuneration of Labour requires wages in money with legal circulation in Ukraine and bans payment in any other form, so a USDC payout cannot replace hryvnia pay. The National Bank also says virtual assets are not a legal means of payment.

What the law says about the form of pay

Article 23 of the Law on Remuneration of Labour requires wages at enterprises in Ukraine to be paid in money with legal circulation there and prohibits payment in any other form, apart from up to 30% in kind under a collective agreement. The National Bank says the hryvnia is the only legal tender.

What it means for employee salary

Ukrainian salary, ESV and tax therefore stay in hryvnia, and USDC or USDT cannot replace a hryvnia salary. Law 2136-IX, Article 10, says wages follow the contract's terms but does not mention crypto. What applies to a hire is confirmed when Toku checks the arrangement.

Contractors

Paying a contractor in crypto is not settled by official sources. Law 2074-IX on Virtual Assets says virtual assets are not a means of payment and cannot be exchanged for goods or services, but takes effect only with Tax Code amendments still unadopted on 2 April 2026, per the National Bank.

Tax on crypto and tokens

The State Tax Service taxes income from selling crypto as annual income, on the money received, at 18% plus the 5% military levy, with a self-filed return where no agent withholds, and says crypto has no defined legal status. Bill 10225-d on virtual assets awaits second reading, so no special crypto tax law is adopted.

How Toku handles it

Employee salary in Ukraine stays in local currency. Toku’s stablecoin payroll and its USDC or USDT payouts through contractor management are separate arrangements from employee salary, and token grants are administered through token grant administration. What applies to a specific hire in Ukraine is confirmed before an offer.

Reviewed November 7, 2026 against the official sources listed below. General information, not legal or tax advice. Tax on crypto or tokens received depends on local rules and where the person is resident, so confirm it with a local adviser.

How hiring through Toku works in Ukraine

1. Share the role, location, salary and start date.
2. Toku confirms coverage, the contract type and the right to work.
3. The local employer issues the contract and onboards the person.
4. Payroll, contributions and filings run each cycle.

Toku checks the role, work location and contract terms before a start date is set. Gather identification, the taxpayer number, hryvnia bank details, the agreed salary and, for staff liable for military service, the military registration document. Your quote confirms the onboarding timeline for Ukraine.

What an employer of record costs in Ukraine

Where Toku supports the hire, its employer of record service starts at $599 per employee per month, with salary, employer contributions and benefit premiums itemized in your quote. Coverage in Ukraine is confirmed before an offer. See the published pricing.

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