Payroll outsourcing in Ukraine for foreign companies and NGOs<\/h1>\n
A Kyiv payroll company running the full cycle for employers in Ukraine: salary calculation, personal income tax, military levy and social contribution, statutory payroll reporting and HR records. Monthly payroll pack in English for the parent company, a named payroll accountant on your account and an auditor reviewing the calculations every quarter.<\/p>\n
![\"Payroll](\"\/wp-content\/plugins\/mk-landing\/img\/suit-tablet.jpg\")
<\/div>\n- \n
- Gross to net calculation for every employee and contractor<\/li>\n
- Personal income tax, military levy and unified social contribution<\/li>\n
- Sick leave, annual leave, maternity pay, indexation and bonuses<\/li>\n
- Payslips for staff and a payment file in your bank’s format<\/li>\n
- Statutory payroll reporting to the tax authority and pension fund<\/li>\n
- HR records: employment orders, contracts, timesheets, leave schedule<\/li>\n<\/ul>\n<\/div>\nStart<\/span>next payroll month, migration included<\/strong><\/div>\nFee<\/span>individual proposal after we review the scope<\/strong><\/div>\n<\/div><\/div>\n<\/section>\n
\n \nWho we work for<\/div>\nEmployers who outsource payroll to us<\/h2>\n<\/div>\n
\n\nForeign owned<\/div>\nSubsidiaries and representative offices<\/b><\/p>\n
Payroll under Ukrainian law with a monthly reporting pack the head office can read. We explain to the parent why gross, net and employer cost differ, and how the Ukrainian social contribution works.<\/p>\n<\/div>\n
\nLocal business<\/div>\nUkrainian companies with 5 to 200 staff<\/b><\/p>\n
Too large for the chief accountant to handle alongside everything else, too small for a dedicated payroll specialist. We take the whole function, from timesheet to payment order and filing.<\/p>\n<\/div>\n
\nNGOs<\/div>\nDonor funded organisations<\/b><\/p>\n
Salaries split between projects and the administrative budget, allocation keys, timesheets that satisfy donor rules and stand up in an audit. More: accounting for NGOs and business<\/a>.<\/p>\n<\/div>\n
\nOne-off<\/div>\nPayroll review<\/b><\/p>\n
If payroll stays in house, we review a quarter or a year and report the errors with amounts. This is part of our HR and payroll audit<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nScope<\/div>\nWhat the monthly payroll cycle covers<\/h2>\n<\/div>\n
\nGross pay<\/b><\/p>\nSalary, hourly and piece rates, bonuses, night, weekend and public holiday premiums, overtime, additional duties and statutory salary indexation.<\/p>\n<\/div>\n
Taxes and deductions<\/b><\/p>\nPersonal income tax, military levy, unified social contribution, alimony, union dues, voluntary deductions and enforcement orders.<\/p>\n<\/div>\n
Average earnings<\/b><\/p>\nAnnual leave, compensation for unused leave, sick pay funded by the employer and by the state fund, maternity pay and business travel.<\/p>\n<\/div>\n
Payments<\/b><\/p>\nPayment file in your bank’s format, card account register and tax payment orders prepared for the same day as the salary transfer.<\/p>\n<\/div>\n
Statutory reporting<\/b><\/p>\nThe combined personal income tax, military levy and social contribution return with per-employee schedules, plus employment reporting where it applies.<\/p>\n<\/div>\n
HR documents<\/b><\/p>\nHiring, transfer, leave and termination orders, employment contracts, timesheets, leave schedules and personnel files kept in Ukrainian form.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nPayroll in Ukraine<\/div>\nThe rules a foreign employer runs into first<\/h2>\n<\/div>\n
\nTwo payments a month<\/b><\/p>\nUkrainian labour law requires salary to be paid at least twice a month, with no more than 16 calendar days between payments, and the final amount for the month no later than the 7th day of the next month. Most employers run an advance in the middle of the month and the balance at the start of the next one.<\/p>\n<\/div>\n
Three taxes on every salary<\/b><\/p>\nPersonal income tax of 18% and the military levy of 5% are withheld from the employee. The unified social contribution of 22% is paid by the employer on top of gross pay, up to a cap of 20 minimum wages. Taxes are paid on the same day as the salary transfer.<\/p>\n<\/div>\n
Monthly return, per employee<\/b><\/p>\nCompanies file one combined return for income tax, military levy and social contribution every month, within 20 calendar days after the month end, with a schedule for each person paid. Late or wrong filings are the most common reason for penalties we see in payroll reviews.<\/p>\n<\/div>\n
Leave and sick pay<\/b><\/p>\nAnnual leave is at least 24 calendar days. Sick leave is paid by the employer for the first five days and by the Pension Fund from the sixth, on the basis of electronic sick notes. Both are calculated on average earnings, which is where most in-house errors happen.<\/p>\n<\/div>\n
Minimum wage and indexation<\/b><\/p>\nThe minimum wage is 8,647 hryvnia a month in 2026 and drives the minimum social contribution, the tax relief thresholds and several caps. Salaries fixed in the contract are subject to statutory indexation for inflation, which employers often forget.<\/p>\n<\/div>\n
Military registration duties<\/b><\/p>\nEmployers keep military records of their staff and notify the territorial recruitment centre within seven days of hiring or dismissing a person liable for service; since August 2026 the notice is filed electronically through Diia. We keep these records as part of HR administration<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nContract types<\/div>\nEmployee, contractor or Diia City: what the employer pays<\/h2>\n<\/div>\n
\n\nEmployment contract<\/div>\n18% income tax and 5% military levy withheld, 22% social contribution on top<\/b><\/p>\n
Full labour law protection: leave, sick pay, notice periods, severance. The standard form for staff who work under your direction and on your schedule.<\/p>\n<\/div>\n
\nPrivate entrepreneur (FOP)<\/div>\nThe contractor pays their own single tax and social contribution, the company withholds nothing<\/b><\/p>\n
Only for genuine services. A contractor who works fixed hours from your office under your instructions can be reclassified as an employee by the labour inspectorate, with back taxes and fines for the company.<\/p>\n<\/div>\n
\nDiia City gig contract<\/div>\n5% income tax and 5% military levy withheld, social contribution of 22% on the minimum wage rather than on actual pay<\/b><\/p>\n
Available only to companies registered as Diia City residents, mostly IT. Residents also confirm compliance with the regime every year: see audit of Diia City residents<\/a>.<\/p>\n<\/div>\n<\/div>\n
We run payroll for all three forms side by side and show the employer cost of each before a hiring decision is made.<\/p>\n<\/section>\n
\n \nDonor funded<\/div>\nPayroll for NGOs and donor projects<\/h2>\n<\/div>\n
\nOne person, several budgets<\/b><\/p>\nA project manager paid from two grants and the core budget needs an allocation key, a timesheet that matches it and a payroll register that shows the split. We set this up so the numbers agree from timesheet to bank statement.<\/p>\n<\/div>\n
Donor rules and caps<\/b><\/p>\nSalary scales, limits on top-ups, rules on bonuses and on paid leave charged to a project differ between donors. We check the payroll against the grant agreement before the month is closed, not after the donor asks.<\/p>\n<\/div>\n
Ready for the grant audit<\/b><\/p>\nPayroll is the first thing an auditor of a donor project opens. Because we also perform grant audits<\/a>, we know which documents are requested and keep them in the order the auditor expects.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nRemote staff<\/div>\nEmployees working from abroad<\/h2>\n<\/div>\n
\nPayroll continues in Ukraine<\/b><\/p>\nStaff who moved abroad after 2022 usually stay on the Ukrainian payroll under a remote work arrangement. The employment contract, the orders and the taxes remain Ukrainian, and the salary is still paid to a Ukrainian bank card or, where the contract allows, to a foreign account.<\/p>\n<\/div>\n
When another country gets interested<\/b><\/p>\nAfter about half a year in one country an employee may become its tax resident, and the employer may acquire obligations there. We flag such cases on the monthly report and, where needed, involve a DFK International member firm in that country.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \nGetting started<\/div>\nWhat we need to take over payroll<\/h2>\n<\/div>\n
\n\n- \n
- Company registration data and the current signatories<\/li>\n
- List of staff with employment contracts, hiring orders and pay conditions<\/li>\n
- Payroll registers and payslips for the last three months<\/li>\n
- Returns filed for the current year and the previous one<\/li>\n
- Leave balances, open sick leave and any enforcement orders<\/li>\n
- The bank’s payment file format and the dates you want salaries paid<\/li>\n<\/ul>\n<\/div>\nMigration in numbers<\/b><\/p>\n
Three to ten working days, depending on headcount and how complete the HR files are. The first month runs in parallel with your previous calculation so that any difference is explained before we take full responsibility. The proposal itself follows within one working day after we have seen the scope.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \n\nHow it works<\/div>\nFour steps with no surprises at month end<\/h2>\n<\/div>\n
\n01<\/b>Review within 1 day<\/strong><\/p>\nWe look at headcount, pay structure, current calculations and the last quarter of filings, and tell you what looks wrong before any engagement letter.<\/p>\n<\/div>\n
02<\/b>Migration<\/strong><\/p>\nWe take over employee cards, orders, leave and sick leave balances, and reconcile the payroll database against the returns already filed.<\/p>\n<\/div>\n
03<\/b>Monthly cycle<\/strong><\/p>\nYou send the timesheet and HR changes, we return the calculation, the payment file and the tax orders on dates fixed at the start.<\/p>\n<\/div>\n
04<\/b>Filing and support<\/strong><\/p>\nWe file the returns, answer tax authority queries, issue income certificates to staff and explain the numbers to your management and head office.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n<\/section>\n
\n \nWhy outsource<\/div>\nWhat you get beyond the calculation<\/h2>\n<\/div>\n
\nNo single point of failure<\/b><\/p>\nHoliday, sick leave or resignation of one specialist does not delay the salary run. The account is run by a team inside an audit firm.<\/p>\n<\/div>\n
An auditor looks at it<\/b><\/p>\nCalculations are reviewed quarterly by an auditor. Errors in average earnings, indexation and tax reliefs surface in our review, not in a tax inspection.<\/p>\n<\/div>\n
Confidentiality<\/b><\/p>\nManagement and key staff salaries are not discussed in your office. For many employers this alone is the reason to move payroll outside.<\/p>\n<\/div>\n<\/div>\n<\/section>\n
\n \n\n\n\nFAQ<\/div>\nWhat clients ask most often<\/h2>\n<\/div>\n
\n\nHow much does payroll outsourcing cost in Ukraine?<\/summary>\n
The fee depends on headcount, pay structure, business travel and whether salaries are split between projects. We send a proposal after reviewing the assignment, normally within one working day.<\/p>\n<\/details>\n
\nDo you work in our system or your own?<\/summary>\n
Either. We can work in your accounting system through remote access, or run payroll on our side and hand over the registers and journal entries. We agree the format during the review.<\/p>\n<\/details>\n
\nWho is liable for penalties caused by a payroll error?<\/summary>\n
We accept liability for our own errors and state it in the engagement letter. Where the error follows from incomplete data supplied to us, we work the situation out together.<\/p>\n<\/details>\n
\nCan we outsource payroll only and keep the rest of accounting?<\/summary>\n
Yes, and this is the most common arrangement. Payroll separates cleanly from the other ledgers; we only agree the journal entry format with your accountant.<\/p>\n<\/details>\n
\nDo you provide reporting in English?<\/summary>\n
Yes. The monthly payroll pack, the employer cost summary and any group reporting schedules are issued in English. The firm belongs to DFK International, so the format is familiar to foreign head offices.<\/p>\n<\/details>\n
\nHow fast can you start?<\/summary>\n
From the next payroll month. Migration takes three to ten working days depending on headcount and the state of the HR documentation.<\/p>\n<\/details>\n
\nWe only have two or three employees in Ukraine. Is outsourcing worth it?<\/summary>\n
This is the most common case for a representative office or a subsidiary at its start. A small payroll still carries the full set of monthly duties: two payments, tax orders, the monthly return, leave and sick pay. Handing it over costs less than a mistake in a single return.<\/p>\n<\/details>\n
\nDo you make the salary payments from your own account?<\/summary>\n
No. Payments always go from the employer’s account. We prepare the payment file and the tax orders, your signatory approves them in the bank on the agreed date. This keeps control of the money with you and keeps our role clear in the engagement letter.<\/p>\n<\/details>\n
\nCan you also take over HR records and military registration?<\/summary>\n
Yes. Employment contracts, orders, timesheets, leave schedules and the military records of staff are kept by the same team, so payroll and HR documents never contradict each other. The service is described on the page HR administration in Ukraine<\/a>.<\/p>\n<\/details>\n
\nHow is salary data protected?<\/summary>\n
Access to the payroll database is limited to the named accountant and the reviewing auditor. Files are exchanged through a secure storage, not by e-mail, and the engagement letter includes a confidentiality clause covering pay data of every employee.<\/p>\n<\/details>\n<\/div>\n<\/div>\n
\nRequest a proposal<\/h3>\n
Tell us the headcount and the pay structure. We reply within 1 working day.<\/p>\n\n
\n<\/p>
- <\/ul><\/div>\n