[Updated 4/15/24] 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.

Asinta Partner
Natalia Zaborovska

GrECo Group

More Info

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 & Benefits support remains in Ukraine.

Insurance companies are still working and providing services in territories with low-level military action in Ukraine but not in the regions with active action and occupied territories.

Emergency and planned assistance, as well as in-patient and outpatient care, can still be provided; employees can pick up prescriptions in the pharmacies. More comprehensive options typically covered within policies, such as dental, critical illnesses, vision, maternity, vaccination, and checkups, are also readily available.

Passive war is generally excluded from coverage or can be offered with certain limitations. Insurance coverage cannot be provided for mobilized persons, who are on full state provision.

Mandatory Employee Benefits in Ukraine

The state of social guaranties in Ukraine is insufficient to ensure a minimum standard of living. In addition to this, the process of obtaining benefits is rather bureaucratized.


The Ukrainian pension system is based only on level 1 of the pension provision (PAYG ‘pay as you go’ level). Unfortunately, this system does not guarantee sufficient pension provision, especially considering the nation’s aging and the decrease in the working population.

The pension age for 2024 is 60 years both for men and women with at least 30 years of experience. In the future, each year, the length of the minimum service will increase by one year; in 2028, it will be 35 years. Further changes, like implementing the secondary accumulative pension level, are also planned by the government, but the date is not set.


Payments, called vacation pay, are formally the salary for vacation days. This provides employees with annual leaves (main and additional) to preserve their place of work (position) and salary for their 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 took place no later than 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 the appointment of 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 2024 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 at 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 first 5 days are paid by the employer, 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 one single payment.


Supplementary Employee Benefits


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, move for leaving abroad)
  • Beneficiary – only the insured employee or dependents

In other cases, the employer must pay the following taxes: a 22% unified social tax, a 18% personal income tax, and a 1.5% military tax. These are mainly used by corporate clients as an instrument of a social package.

Group Life Insurance

The territory of coverage: Ukraine or worldwide.

Limits: salary-based (usually up to 2x annual salaries) 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 from 6 up to 32 illnesses

Premiums are usually paid by the employer, and costs depend on the group size, occupation, gender, and age of each employee.


There is no obligatory state medical insurance. In theory, medical help is free of charge, but in practice, it requires many of out-of-pocket expenses or applying for private medical help.

Voluntary medical insurance – This is a very popular solution to provide a sufficient level of medical help for employees. Now it is 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 with medicines
  • Dental care
  • Additional options include the treatment of critical illnesses, preventative checkups, and maternal care.

Premiums are usually paid for by the employer, and costs depend on group size, the level of clinics covered (state/ departmental, private clinics of different level), and the scope of the medical plan.

Personal Accident Insurance

The territory of coverage: Ukraine or worldwide.

Period of coverage: 24 hours a day (preferable) or working hours only.

Limits: salary-based (usually up to 2x annual salaries) 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 usually paid for by the employer and depend upon group size and employee occupation.

Business Travel Insurance

This insurance has a few forms, including single policies, part of group medical coverage, 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 usually offered within certain corporate limits and could include things like war-related risks and veteran’s support.
  • Mental Health support, including individual sessions and lectures from general practitioners/ psychologists, etc. Wellness benefits include access to swimming pools and gyms or 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 ( is responsible for policy and provides general coordination.

Pension Fund ( administers pensions.

State Fiscal Service ( collects contributions.


This information about mandatory and supplemental employee benefits in Ukraine comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

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