Simplified regime of labor relations during the war: official work – official guarantees

Press service of the State Tax Service of Ukraine, published 25 August 2025 at 09:33 Chapter: News

During the martial law in Ukraine, the simplified regime for regulating labor relations operates – special legal model that allows employers and employees to formalize cooperation more flexibly, but does not exempt them from obligation to pay taxes and contributions.

This regime applies to employment relationships if:

- employer is a small or medium-sized enterprise with up to 250 employees;

- or the employee’s monthly salary exceeds eight minimum wages (64 thousand UAH per month in 2025).

In an employment contract, parties can determine individual working conditions, including payment, responsibility, organization of working hours, material support, conditions for terminating the contract, etc. Contract is concluded in the written or electronic form.

What does the employer pay for the employee?

Even using the simplified regime, the employer is obliged to:

deduct from the employees’ incomes and transfer to the relevant budgets:

- 18% of the personal income tax – for financing schools, hospitals, etc.;

- 5% of the military levy – for defense needs;

accrue and pay 22% of the single social contribution – is transferred to the Pension fund and Social insurance fund, from which the employees receive:

- temporary disability benefits (hospital);

- maternity benefits;

- insurance payments in case of an accident at work;

- pension provision in the future.

Employee who works officially, even in the simplified regime:

- acquires insurance experience;

- has confirmed income for applying for subsidies, benefits, loans;

- is protected in case of illness or disability.

Work officially – paid taxes work for you!