Ukraine
[Updated 6/23/25] Health insurance is the number one employee benefit people in Ukraine care about. Despite the difference between the two sectors, this is considered equally important for blue- and white-collar workers. Although state-provided medical care is free of charge, it is unfortunately not always deemed sufficient. Private medical care is expensive, and the price of medicine is rising.
Country Insight
Average Cost
The average monthly cost of employee benefits for a medium-sized company is approximately 1,000 Hryvnias for a basic package, 1,500 Hryvnias for a standard package, and 2,500 Hryvnias for a superior package. Employees pay a tax for medical insurance premiums paid by their employers. Personal income and military taxes are not applied to insurance premiums that do not exceed 30% of monthly salary.
Mandatory employee benefits in Ukraine are provided within the state social security system. They include pension benefits, unemployment, death, and short-term and long-term disability from occupational illnesses or personal accidents. Supplementary employee benefits in Ukraine include retirement, life, medical, and personal accident insurance. Perks range from ‘health days’ to critical illness coverage.
Despite the martial law in the country, the need for health and benefits support remains in Ukraine.
Insurance companies are still operating and providing services in territories with low-level military activity in Ukraine, but not in regions with active combat and occupied territories.
Emergency and planned assistance, as well as inpatient and outpatient care, can still be provided. Employees can also pick up prescriptions at pharmacies. More comprehensive options, typically covered within policies, such as dental, critical illness, vision, maternity, vaccination, and check-ups, are also readily available.
Passive war is generally excluded from coverage or can be offered with certain limitations. Local insurers are adapting to the current situation. They can more often offer passive war coverage for the civil population, such as emergency assistance under medical insurance and certain limits under life or property insurance. Insurance coverage cannot be provided for mobilized persons, who are on full state provision.
Mandatory Employee Benefits in Ukraine
The state of social guarantees in Ukraine is insufficient to ensure a minimum standard of living. Additionally, the process of obtaining benefits is somewhat bureaucratized.
Pension
The Ukrainian pension system is based solely on level 1 of the pension provision (PAYG, or ‘pay as you go’). Unfortunately, this system does not guarantee sufficient pension provision, particularly given the nation’s aging population and declining workforce.
The pension age for 2024 is 60 years, applicable to both men and women, provided they have at least 30 years of experience. In the future, the minimum service length will increase by one year each year, reaching 35 years by 2028. Further changes, such as implementing the secondary accumulative pension level, are also planned by the government, but the date has not been set.
LegislativeLeaves
Payments, also known as vacation pay, are formally considered part of the salary for vacation days. This provides employees with annual leave (main and additional) to preserve their place of work (position) and salary for the period. Since the employee does not work during the vacation period, the average salary is paid to him.
Paid Time Off
Maternity benefits – These are assigned for the entire period of the maternity leave, provided that the application for benefits is made within 6 months from the end of this leave. The total duration of maternity leave is 126 days (70 calendar days before delivery and 56 days after).
- The basis for maternity benefits is the issuance of sick leave, following the established procedure.
- The benefit amount is calculated based on the average salary for the previous 12 months.
- These benefits are covered by the state social security fund and are paid by the employer.
- In addition to maternity leave benefits, the state assists with costs associated with childbirth.
This help for 2025 is set at UAH 41,280. Parents will be able to receive part of the amount, UAH 10,320, immediately, and the rest will be paid in installments of UAH 860 per month for 3 years.
Parents may also be able to use vacation for childcare for up to 3 years, saving their vacation time. This is unpaid leave, however.
Employment Insurance
The employer pays state social security payments for employees through a unified social tax of 22% of salary. This tax covers the pension system, unemployment benefits, and short-term and long-term disability benefits.
- Short-term disability – These work-related benefits are paid 100% of the average salary per day of disability (the employer pays the first 5 days, the rest by the state fund). If the disability is not work-related, the payment amount depends on the employee’s length of service.
- Long-term disability – The compensation for work-related long-term disability depends on the level of disability and the average salary or minimum income. The Spherical Disability State Commission establishes the level of disability.
- Unemployment insurance – Compensation from the state fund for unemployment depends on the length of service, the average salary of the person before unemployment, and the reason for unemployment. This compensation could also be provided as a single payment.
Supplementary Employee Benefits
Retirement
Long-term life insurance – Additional retirement insurance could be arranged as long-term life insurance. For tax benefit purposes, the coverage should be in the form of additional pension insurance, which has several requirements according to the law:
- Minimum period of coverage – until official pension age +/- 10 years
- No prior cancellation (except for death, disability, critical illness, or move for leaving abroad)
- Beneficiary – only the insured employee or dependents
Group Life Insurance
The territory of coverage: Ukraine or worldwide.
Limits: salary-based (typically up to 2 times annual salary) or fixed amounts.
Scope of coverage:
- Death resulted from any reason (PA or illness)
- Invalidity of I, II, and III groups (permanent disability)
- Injuries & traumas (with % of compensation according to the Table of traumas) / Temporary disability (fixed % of compensation per day of disability)
- Critical illnesses (cancer, heart attack, brain attack, and the like), the list ranges from 6 to 32 illnesses
Premiums are usually paid by the employer, and costs depend on the group size, occupation, gender, and age of each employee.
Healthcare
There is no obligatory state medical insurance. In theory, medical help is free of charge, but in practice, it often requires incurring out-of-pocket expenses or applying for private medical assistance.
Voluntary medical insurance – This is a popular solution that provides a sufficient level of medical assistance for employees. It is now available mainly as group medical insurance for corporate clients. Medical insurance for individuals is less affordable.
Typical medical insurance plans include:
- Outpatient treatment
- In-patient treatment
- Emergency care
- Providing medicines
- Dental care
- Additional options include the treatment of critical illnesses, preventative checkups, and maternal care.
The employer typically pays premiums, and costs depend on the group size, the level of clinics covered (state or departmental, private clinics of varying levels), and the scope of the medical plan.
Personal Accident Insurance
The territory of coverage: Ukraine or worldwide.
Period of coverage: 24 hours a day (preferably) or working hours only.
Limits: salary-based (typically up to 2 times annual salary) or fixed amounts.
Scope of coverage:
- Death as a result of a personal accident
- Invalidity of I, II, and III groups (permanent disability)
- Injuries & traumas (with % of compensation according to the Table of traumas) / Temporary disability (fixed % of compensation per day of disability)
Premiums are typically paid by the employer and depend on the group size and employee occupation.
Business Travel Insurance
This insurance comes in several forms, including single policies, part of a group medical coverage plan, or separate corporate business travel insurance policies.
Scope of coverage:
- Medical costs
- Personal accidents
- Assistance
- Third-party liability
- Baggage insurance
- Financial risks (trip cancellation)
- Business travels within Ukraine
Employee Perks
Voluntary medical insurance could offer different additional options, some of the most popular being:
- Coverage of exclusions from the agreement. These are typically offered within specific corporate limits and may include items such as war-related risks and veterans’ support.
- Mental Health support, including individual sessions and lectures from general practitioners, psychologists, and other professionals. Wellness benefits include access to swimming pools and gyms, as well as compensation for a gym membership.
- Coverage for a limited number of critical illnesses (cancer, coronary artery bypass surgery, heart valve replacement or repair, neurosurgery, live-donor organ/tissue transplant) in the leading specialized clinics outside Ukraine.
Administrative Organizations
Ministry of Social Policy (https://www.msp.gov.ua/) is responsible for policy and provides general coordination.
Pension Fund (http://www.pfu.gov.ua/) administers pensions.
State Fiscal Service (http://sfs.gov.ua/) collects contributions.
This information on mandatory and supplemental employee benefits in Ukraine is provided by Asinta’s Central and Eastern European Partner, the GrECo Group.