ua-payroll
Use this skill whenever asked about Ukrainian payroll for a sole proprietor (ФОП) or small employer who hires staff. Trigger on phrases like "Ukraine payroll", "hiring an employee in Ukraine", "payrol
SKILL.mdagent-skills/ua-payroll/SKILL.md
GitHubUA Payroll
Ukraine Payroll for Employers (Зарплата та податки на найманих працівників) — Skill v1.0
This skill covers what happens when a Ukrainian sole proprietor (ФОП / fizychna osoba-pidpryyemets) or small employer hires staff under an employment contract (трудовий договір) and must run payroll. It is distinct from the owner's own taxes: a single-tax ФОП's own single tax and personal ЄСВ are handled by ua-single-tax and ua-social-contributions. The moment that ФОП hires even one employee, it becomes a tax agent (податковий агент) and an ЄСВ payer for that employee with a separate set of obligations described below.
Wartime note. Figures are pinned at their 1 January 2026 values. Ukraine is under martial law. The military levy (військовий збір, ВЗ) is 5% on salaries since 1 December 2024 (raised from 1.5%). Most amounts key off the statutory minimum wage (₴8,647 from 1 Jan 2026). Always verify the current value before relying on a number.
Two different "ФОП" roles — don't confuse them. A ФОП can be (a) the employer running payroll for hired staff (this skill), and (b) a worker who invoices a business under a service contract instead of being on payroll (§4, misclassification).
1. Quick Reference
Quick Reference
| Field | Value |
|---|---|
| Country | Ukraine (UA) |
| Taxes on salary | ПДФО (personal income tax) 18% + військовий збір (military levy) 5% — withheld from employee; ЄСВ (unified social contribution) 22% — paid by employer on top of gross |
| Currency | UAH (₴) |
| Minimum wage 2026 (мінімальна зарплата) | ₴8,647 / month (₴52 / hour) from 1 Jan 2026 |
| ЄСВ floor | Salary base must be ≥ minimum wage → minimum ЄСВ ₴1,902.34 / month per full-time employee |
| ЄСВ maximum base | 20 × minimum wage = ₴172,940 / month → max ЄСВ ₴38,046.80 / month (verify — §3) |
| Reduced ЄСВ | 8.41% on salaries of employees with a disability (особа з інвалідністю) |
| Legislation | Tax Code of Ukraine (ПКУ) — PIT §167, military levy §16¹ subsec. 10; Law No. 2464-VI on ЄСВ; Labour Code (КЗпП); State Budget Law for 2026 (03 Dec 2025) sets the minimum wage; Law No. 4536-IX (16 Jul 2025) — 2026 reporting changes |
| Authority | Державна податкова служба (ДПС / State Tax Service) collects PIT, ВЗ and ЄСВ; Pension Fund (Пенсійний фонд) keeps insurance records |
| Portal | Електронний кабінет платника (cabinet.tax.gov.ua) |
| Withholding remittance | PIT + ВЗ paid on/at the moment salary is paid (within the salary-payment day); if salary accrued but unpaid, by the 30th of the following month |
| ЄСВ remittance | By the 20th of the month following the month of accrual |
| Unified report | Податковий розрахунок (combined PIT + ВЗ + ЄСВ + Form 4ДФ annex) — quarterly with monthly breakdown from 2026 |
| Contributor | Open Accountants Community |
| Quality tier | Research-verified — pending sign-off by a Ukrainian accountant |
| Skill version | 1.0 |
Headline rates (1 Jan 2026)
Headline rates (1 Jan 2026)
| Component | Native term | Rate | Who pays | Reduces net pay? |
|---|---|---|---|---|
| Personal income tax | ПДФО (податок на доходи фізичних осіб) | 18% | Employee (withheld) | Yes |
| Military levy | військовий збір (ВЗ) | 5% | Employee (withheld) | Yes |
| Unified social contribution | ЄСВ (єдиний соціальний внесок) | 22% | Employer (on top of gross) | No |
| ЄСВ — employees with disability | ЄСВ (пільгова ставка) | 8.41% | Employer | No |
Conservative defaults
Conservative defaults
| Situation | Default assumption |
|---|---|
| Salary below minimum wage for a full-time post | Not allowed. Accrue ЄСВ on at least ₴8,647 (the minimum-wage floor) |
| Part-time / partial month | ЄСВ may be on actual (proportional) salary — but confirm; the floor applies to full normal hours |
| Worker engaged "as a ФОП" but works like staff | Treat as disguised employment risk → default to advising an employment contract (§4) |
| Disability status claimed but no certificate on file | Use standard 22%, not 8.41%, until the disability certificate is documented |
| Unsure whether a payment is "salary" | Treat as salary subject to PIT + ВЗ + ЄСВ unless clearly a non-wage item |
| Any rate/threshold | State the formula and add "verify current value" |
2. Required inputs & refusal catalogue
Inputs needed before computing payroll
- Inputs needed before computing payroll — 1. Employer status — is the employer a ФОП or a legal entity? Is the ФОП registered as an employer / has it filed the hiring notification (повідомлення про прийняття на роботу) before the employee starts? 2. Gross salary per employee (нарахована заробітна плата) and whether full-time or part-time. 3. Employee special status — disability (for 8.41% ЄСВ), and any PIT social-tax-allowance (податкова соціальна пільга, ПСП) eligibility. 4. Pay frequency — Ukraine requires salary at least twice a month, intervals ≤ 16 calendar days. 5. Tax year / month to pin the minimum wage and caps.
Refusal catalogue
Refusal catalogue
| Code | Refuse / escalate when | Why |
|---|---|---|
| R-UA-1 | User asks how to pay "salary" off the books / in cash to dodge ЄСВ | Illegal undeclared employment (зарплата в конвертах); fines up to 10× minimum wage per worker |
| R-UA-2 | User asks to dress up an employment relationship as a ФОП service contract to avoid payroll taxes | Disguised employment; reclassification, back taxes + penalties (§4) |
| R-UA-3 | User wants to pay below the minimum wage for full-time work | Statutory floor; ЄСВ must still be on ₴8,647 |
| R-UA-4 | Hiring foreign nationals / work-permit, posted-worker, or special-regime payroll | Out of scope; specialist immigration + labour advice needed |
| R-UA-5 | Diia City "гіг-спеціаліст" gig-contract payroll (5% PIT regime, 1.5% military levy via residency tax) | Different regime — cross-ref ua-tax-optimization; do not apply the standard 18%/5%/22% set without checking Diia City status |
| R-UA-6 | Mobilised/military personnel pay, sickness/maternity benefit funded by the state social fund, or дивіденди treated as wages | Special bases/rates; verify with ДПС |
| R-UA-7 | The figure cannot be verified against ДПС / a reputable source for the relevant month | YMYL — never guess a rate or cap |
3. Gross-to-net computation
The model
- Gross-to-net model — For each employee, each month:
Employee withholdings (reduce take-home): ПДФО (PIT) = 18% × gross salary Військовий збір (ВЗ) = 5% × gross salary Net pay = gross − ПДФО − ВЗ Employer cost (on top of gross, NOT withheld): ЄСВ = 22% × base, where base = max(gross, ₴8,647 minimum-wage floor) capped at base ≤ ₴172,940 (20 × minimum wage) [verify] 8.41% instead of 22% for employees with disability Total employer cost = gross + ЄСВKey points: - PIT and ВЗ have no floor and no cap — they are flat percentages of the actual gross. - ЄСВ has a floor (must be on ≥ minimum wage for a full normal month) and a cap (base ≤ 20 minimum wages = ₴172,940; max ЄСВ ≈ ₴38,046.80/month — verify). - ЄСВ is the employer's expense; it is never deducted from the employee. - A податкова соціальна пільга (ПСП) can reduce the PIT base for low earners — apply only if eligibility is documented; otherwise default to no ПСП.
Worked: ₴30,000 gross (standard full-time employee)
Worked: ₴30,000 gross (standard full-time employee)
| Line | Calculation | Amount (₴) |
|---|---|---|
| Gross salary (нарахована ЗП) | — | 30,000.00 |
| ПДФО (PIT) | 18% × 30,000 | −5,400.00 |
| Військовий збір (ВЗ) | 5% × 30,000 | −1,500.00 |
| Net pay to employee (на руки) | 30,000 − 5,400 − 1,500 | 23,100.00 |
| ЄСВ (employer, on top) | 22% × 30,000 | 6,600.00 |
| Total cost to employer | 30,000 + 6,600 | 36,600.00 |
Worked: ₴30,000 gross (standard full-time employee)
So a ₴30,000 salary costs the employer ₴36,600, the employee receives ₴23,100, and ₴13,500 goes to the budget (₴5,400 PIT + ₴1,500 ВЗ + ₴6,600 ЄСВ).
4. Employee vs ФОП-contractor (misclassification / disguised employment)
A common arrangement: instead of hiring an employee, a business asks the worker to register as a single-tax ФОП (Group 3) and invoice for "services". The worker then pays ~5% single tax + 1% military levy + their own minimum ЄСВ, and the engaging business pays no payroll PIT/ВЗ/ЄСВ. This can be legitimate for genuine independent work — but it is disguised employment (приховані трудові відносини) if the substance is an employment relationship.
Indicators that point to employment, not genuine contracting
- Employment indicators — - Fixed working hours / a workplace / subordination to internal rules. - Single client (the engaging business is the worker's only or dominant "customer"). - Payment is a regular fixed monthly amount resembling salary, not per-deliverable. - The business supplies the tools, equipment and workplace. - Personal performance required; the ФОП cannot subcontract or substitute. - Integration into the org chart, ongoing managed work rather than a defined project. Ukraine's incoming labour-reform "5+ indicators" test presumes employment when 5 or more such criteria are met (status pending the new Labour Code — verify timing).
Consequences of misclassification
- Consequences — - Reclassification to an employment relationship by the labour inspectorate / court. - Back PIT, military levy and ЄСВ for the whole period, plus interest. - Fines under the Labour Code (КЗпП ст. 265) up to 10× minimum wage per worker for undeclared employment; potential personal liability for management. (Labour Code of Ukraine (КЗпП) ст. 265)
Default guidance
If indicators point to employment, advise an employment contract with proper payroll (this skill). Only treat as a genuine ФОП-to-ФОП service contract when the worker is truly independent, has multiple clients, controls their own work, and bears business risk — document the reasoning. See R-UA-2.
Diia City gig specialists. Companies in the Diia City regime can engage гіг-спеціалісти (gig specialists) under a special gig-contract that is neither an employment contract nor an ordinary ФОП arrangement, with a favourable resident-tax regime (commonly 5% PIT). This is a separate regime — cross-ref
ua-tax-optimizationand do not apply the standard 18%/5%/22% set without confirming Diia City status (R-UA-5).
5. Reporting & payment calendar
Registration / before the first employee starts
- Registration before first employee starts — - File the повідомлення про прийняття на роботу (notification of hiring) to ДПС before the employee begins work — failure is penalised. - Issue a hiring order (наказ про прийняття) and employment contract; keep a salary ledger.
Withholding remittance (PIT + military levy)
- Withholding remittance (PIT + military levy) — - PIT and ВЗ are paid at the same time salary is paid (з виплатою зарплати). - If salary is accrued but not paid, PIT/ВЗ are due by the 30th of the following month. - Advance + final salary each month (twice-monthly pay rule, ≤ 16-day interval).
ЄСВ remittance
- ЄСВ remittance — - ЄСВ is due by the 20th of the month following the accrual month (e.g., January salary → ЄСВ by 20 February).
Unified report — Податковий розрахунок (combined PIT + ВЗ + ЄСВ)
Unified report filing deadlines (Law No. 4536-IX (16 Jul 2025))
| Period | Filing deadline (verify; rolls to next business day if weekend/holiday) |
|---|---|
| Q1 2026 | by 10 May 2026 (→ 11 May 2026 in practice) |
| Q2 2026 | by 9 August 2026 |
| Q3 2026 | by 10 November 2026 |
| Q4 2026 | by 9 February 2027 |
Unified report — Податковий розрахунок (combined PIT + ВЗ + ЄСВ)
From 1 January 2026 (Law No. 4536-IX, 16 Jul 2025) the Податковий розрахунок — the single report combining ЄСВ, ПДФО, the military levy and the 4ДФ per-person annex — is filed quarterly with a monthly breakdown within the quarter.
Filed via the Електронний кабінет. There is no separate military-levy return — ВЗ is reported inside the Податковий розрахунок alongside PIT and ЄСВ.
6. Worked examples
Example A — Minimum-wage employee
Example A — Minimum-wage employee
| Line | Calc | ₴ |
|---|---|---|
| Gross | — | 8,647.00 |
| ПДФО 18% | 0.18 × 8,647 | −1,556.46 |
| ВЗ 5% | 0.05 × 8,647 | −432.35 |
| Net | 6,658.19 | |
| ЄСВ 22% | 0.22 × 8,647 | 1,902.34 |
| Total cost | 10,549.34 |
Example A — Minimum-wage employee
Gross = ₴8,647 (the 2026 minimum wage), standard rates.
(ЄСВ minimum floor met exactly, since base = minimum wage.)
Example B — Part-time below minimum wage (ЄСВ floor bites)
Example B — Part-time below minimum wage (ЄСВ floor bites)
| Line | Calc | ₴ |
|---|---|---|
| Gross | — | 5,000.00 |
| ПДФО 18% | 0.18 × 5,000 | −900.00 |
| ВЗ 5% | 0.05 × 5,000 | −250.00 |
| Net | 3,850.00 | |
| ЄСВ — if part-time is genuine | 22% × actual ₴5,000 | 1,100.00 |
| ЄСВ — if treated as full normal-hours post | 22% × ₴8,647 floor | 1,902.34 |
Example B — Part-time below minimum wage (ЄСВ floor bites)
A part-time employee is paid ₴5,000 gross for a part-time post.
The floor rule matters: for a full normal-hours position ЄСВ must be on at least ₴8,647 even if the paid salary is lower. For a genuinely part-time/partial-month post, ЄСВ may be on the actual amount — confirm the working-time basis before choosing.
Example C — Employee with a disability (reduced ЄСВ)
Example C — Employee with a disability (reduced ЄСВ)
| Line | Calc | ₴ |
|---|---|---|
| Gross | — | 30,000.00 |
| ПДФО 18% | −5,400.00 | |
| ВЗ 5% | −1,500.00 | |
| Net | 23,100.00 | |
| ЄСВ 8.41% (not 22%) | 0.0841 × 30,000 | 2,523.00 |
| Total cost | 32,523.00 |
Example C — Employee with a disability (reduced ЄСВ)
Gross = ₴30,000, documented disability certificate on file → ЄСВ at 8.41%.
Compared with Example "₴30,000 standard" (₴36,600 total cost), the disability rate saves the employer ₴4,077/month. (Without a certificate on file, use 22% — default.)
Example D — High earner hitting the ЄСВ cap
Example D — High earner hitting the ЄСВ cap
| Line | Calc | ₴ |
|---|---|---|
| ПДФО 18% | 0.18 × 200,000 | 36,000.00 |
| ВЗ 5% | 0.05 × 200,000 | 10,000.00 |
| Net | 200,000 − 46,000 | 154,000.00 |
| ЄСВ base | min(200,000, 172,940 cap) | 172,940.00 |
| ЄСВ 22% | 0.22 × 172,940 | 38,046.80 (verify cap) |
| Total cost | 200,000 + 38,046.80 | 238,046.80 |
Example D — High earner hitting the ЄСВ cap
Gross = ₴200,000.
PIT and ВЗ apply to the full ₴200,000 (no cap); ЄСВ stops at the 20-minimum-wage base of ₴172,940, so the marginal employer ЄСВ on income above the cap is zero.
7. Tier 2 — judgement calls & edge cases
- Salary in kind / benefits — taxable; a "natural coefficient" (натуральний коефіцієнт) grosses up non-cash benefits for PIT. Flag for accountant.
- Vacation pay & sick leave — included in the ЄСВ/PIT base; first 5 days of sick leave are employer-funded, the rest from the social-insurance fund (different ЄСВ treatment on the fund-paid portion). Verify.
- ПСП (податкова соціальна пільга) — reduces PIT base for low earners meeting the income limit; apply only with documented eligibility.
- Дивіденди / royalties / GPC (civil-law) contract fees — different rate/base mixes; a civil-law service contract with an individual (not a ФОП) is still subject to PIT + ВЗ and ЄСВ (often at the standard 22%). Don't conflate with employment.
- Multiple jobs — the minimum-wage ЄСВ floor applies at the main place of work; for a secondary job ЄСВ is on actual pay. Confirm which is primary.
- Diia City — see §4 / R-UA-5 and
ua-tax-optimization.
8. References & test suite
References (verify against primary sources before filing)
- References — - Tax Code of Ukraine (ПКУ) — §167 (PIT 18%), §16¹ subsec. 10 (military levy 5%), §168 (withholding/remittance), §176 (tax-agent reporting). - Law No. 2464-VI "On collection and accounting of the Unified Social Contribution" — 22% rate, minimum/maximum base, 8.41% for employees with disability. - Labour Code of Ukraine (КЗпП) — ст. 265 (penalties for undeclared/disguised employment), twice-monthly pay rule, hiring notification. - State Budget Law for 2026 (adopted 03 Dec 2025) — minimum wage ₴8,647 from 1 Jan 2026. - Law No. 4536-IX (16 Jul 2025) — quarterly Податковий розрахунок from 1 Jan 2026. - ДПС / State Tax Service — tax.gov.ua / dps.gov.ua; Електронний кабінет (cabinet.tax.gov.ua). - PwC Worldwide Tax Summaries — Ukraine (corroboration of rates).
Self-check / test suite
- ₴30,000 gross → PIT ₴5,400, ВЗ ₴1,500, net ₴23,100, ЄСВ ₴6,600, total ₴36,600. ✔
- ₴8,647 (minimum wage) → net ₴6,658.19, ЄСВ ₴1,902.34 (= ЄСВ minimum). ✔
- Disability employee at ₴30,000 → ЄСВ 8.41% = ₴2,523 (not ₴6,600). ✔
- ₴200,000 → ЄСВ capped at base ₴172,940 → ЄСВ ₴38,046.80; PIT/ВЗ uncapped. ✔
- Worker with one client, fixed hours, employer's tools, monthly fixed pay → employment indicators ≥ 5 → advise contract (R-UA-2). ✔
- Request to pay cash off-book to skip ЄСВ → refuse (R-UA-1). ✔
- Diia City gig specialist → do not apply 18%/5%/22%; cross-ref
ua-tax-optimization(R-UA-5). ✔ - Q1 2026 unified report deadline → 10/11 May 2026; no separate military-levy return. ✔
PROHIBITIONS
- Prohibitions — - Do NOT advise paying wages off the books, in cash undeclared, or "in envelopes" (зарплата в конвертах) to avoid ЄСВ/PIT/ВЗ. - Do NOT structure a genuine employment relationship as a ФОП service contract to dodge payroll taxes (disguised employment). - Do NOT accrue ЄСВ below the minimum-wage floor for a full normal-hours position. - Do NOT apply the 8.41% reduced ЄСВ without a documented disability certificate. - Do NOT treat Diia City gig specialists under the standard 18%/5%/22% set without confirming the regime. - Do NOT state any rate, cap or deadline as final without verifying the current value against ДПС / a reputable source for the relevant month. - Do NOT file or submit anything on the user's behalf, or move money — prepare figures for the user and their accountant to review and submit.
Disclaimer
This skill is research-verified against public sources (ДПС / State Tax Service, PwC Worldwide Tax Summaries, reputable Ukrainian payroll/accounting publishers) but is pending sign-off by a qualified Ukrainian accountant. Ukrainian payroll rules, minimum wage, caps, the military-levy rate and reporting forms change frequently — especially under martial law — so every figure must be re-verified for the exact month of computation. This is general information, not legal, tax or accounting advice, and does not create a professional relationship. Always have a credentialed Ukrainian accountant review payroll before salaries are paid or reports are filed. Part of openaccountants.com — open-source tax skills for the self-employed.
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General reference only. This document does not constitute tax, legal, or financial advice. Verify figures against the cited primary sources or with a licensed professional before relying on them.
Today's figures and who stands behind this skill
This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-07-13. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call get_skill with slug ua-payroll on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/ua-payroll. If neither is available, confirm every figure against the official source pages cited above before relying on it.