Payroll legislation changes in Ukraine for 2025 | News Flash

Payroll legislation changes in Ukraine can have a significant impact on businesses operating in the country, affecting everything from tax compliance to employee compensation. As the legal landscape evolves, staying informed is essential for employers to ensure compliance and avoid potential risks. This article highlights the latest updates in payroll legislation, outlining key modifications and their implications for businesses in Ukraine.

Increase in Military tax rate from December 1, 2024

• MT – 5% of total accrued income

Minimum indicators from January 1, 2025 remained unchanged, namely:

• Amount of the minimum salary:
  • 8 000 UAH – in the monthly amount;
  • 48.00 UAH – per hour.

• The minimum amount of SSC (Social security contributions) per month:
  • 1 760 UAH (22% from 8 000 UAH)

Change of maximum indicators from January 1, 2025

• The maximum value of the SSC calculation base per month:
  • 160 000 UAH (8 000 UAH х 20)
• The maximum amount of SSC per month:
  • 35 200 UAH (22% from 160 000 UAH)
• The maximum amount for 1 day of compensation for sick leave:
  • 5 256,24 UAH (160 000 / 30,44)

Change in the frequency of filing the Unified reporting on the SSC, PIT and MT:

• From January 1, 2025, a monthly provision of tax calculation of the amounts of income accrued (paid) in favor of taxpayers – individuals, and the amounts of tax withheld from them, as well as the amounts of accrued single contribution for employees is introduced
• The reporting deadline is up to the 20th day of the month following the reporting month.

Changes in the definition of the base month for indexation from 2025:

• The consumer price index in January 2025 is taken as 1 or 100 percent. The calculation of such an index for indexation begins in February 2025.

• At the same time, the retention of the previously determined indexation amount is not envisaged.

Summary:

• January 2025 becomes the base month;
• Indexation from February 2025 begins “from scratch”.

How Accace can help you navigate payroll legislation changes in Ukraine

Keeping up with payroll legislation changes in Ukraine can be challenging, especially as regulations evolve. Accace provides expert payroll outsourcing and advisory services to help businesses stay compliant while streamlining their payroll processes. With deep local expertise and a proactive approach, our team ensures accurate payroll calculations, tax compliance, and seamless reporting, allowing you to focus on your core business. Whether you need full payroll outsourcing in Ukraine or just occasional support, Accace is here to simplify your payroll management.

Anna Magdich

Managing Director | Accace Ukraine

Book a meeting with Anna