Social Contributions (USC) – Ukraine

Employer pays 22% of gross salary to USC fund. Employees pay nothing - 0% contribution. Covers all social insurance: pensions, healthcare, unemployment, maternity/paternity, disability benefits. Unique system in Europe.

Maximum monthly base is 20× minimum wage (UAH 8,647 × 20 = UAH 172,940 as of 2026). Note: This 20× cap officially postponed for 2026, effectively remaining at 15× minimum wage for practical purposes. High earners pay capped amount.

Minimum base equals one minimum wage (UAH 8,647 from January 1, 2026). Minimum monthly USC payment approximately UAH 1,902. Applies to income at main place of work. Ensures minimum social insurance coverage.

Foreign individuals working in foreign company representative offices exempt from USC. All other foreign employees must pay USC same as Ukrainian citizens. No general exemption for expats.

Employees pay ZERO social security contributions in Ukraine. All USC burden falls on employer at 22%. However, employees still pay 18% PIT + 5% military tax (23% total) on gross income. Favorable for employees compared to most countries.

Self-employed on general system pay 22% USC on net taxable income after expenses. Must also pay 18% PIT + 5% military tax. Total burden significant for high earners.

Individual entrepreneurs (FOPs) on simplified taxation pay fixed USC amounts: Group I UAH 302.80/month, Group II UAH 1,600/month. Group III pays 22% of minimum wage (UAH 1,902) as minimum. More favorable than general system.