VAT for ФОП at €85,000 → bill №16037-1 explained
The Ministry of Finance names a €85,000 VAT threshold for ФОП, targeted for 2028; bill №16037-1 lets ФОП choose quarterly returns and adds prefill.
Payroll in Ukraine in 2027 starts from a higher floor. Draft State Budget №16000, registered in the Verkhovna Rada on 15 September 2026, sets the minimum wage at 9,546 UAH a month (57.50 UAH an hour) from 1 January 2027, up from 8,647 UAH. The rates in force today are employer ЄСВ 22% on top of gross, ПДФО 18% and військовий збір 5% withheld from the employee, and the analyses of the draft carry them into 2027. A full-time employee on the minimum wage will cost the employer 11,646.12 UAH a month and take home 7,350.42 UAH, which is 1,096.78 UAH a month more in employer cost than in 2026. The figures become final once the budget law is adopted.
The short version Employer cost in Ukraine = gross salary + 22% ЄСВ, with ЄСВ charged on at least 9,546 UAH for a full-month main-job employee and on at most 190,920 UAH. Net pay = gross − 18% ПДФО − 5% військовий збір. Update the minimum wage in your payroll settings and your 2027 budget before the January run.
Budget 2027 headcount at the new rates. See the Payroll Agent build a gross-to-net register at 2027 rates and stop for your approval.Book a Payroll Agent demo →
What changes on 1 January 2027
The minimum wage drives three payroll numbers in Ukraine: the pay floor for a full month, the minimum employer ЄСВ, and the maximum ЄСВ base. All three move with the draft budget. The draft sits with the Rada budget committee (bill card №16000); the figures below follow the Дебет-Кредит analyses of the draft.
| Indicator | 2026 | 2027 (draft) |
|---|---|---|
| Minimum wage, month | 8,647 | 9,546 |
| Minimum wage, hour | 52.00 | 57.50 |
| Minimum employer ЄСВ (22% × minimum wage) | 1,902.34 | 2,100.12 |
| Maximum ЄСВ base (20 minimum wages) | 172,940 | 190,920 |
| Maximum monthly ЄСВ per employee | 38,046.80 | 42,002.40 |
| Subsistence minimum for able-bodied persons | — | 3,691 |
UAH. Sources: Дебет-Кредит on the minimum wage and subsistence minimum, ЄСВ limits for 2027 and the 2026 values. The ЄСВ law itself sets the cap at 15 minimum wages; that clause was suspended for 2025 and 2026 (Laws №4059-IX and №4695-IX), and art. 45 of draft №16000 sets the 2027 cap at 20 minimum wages.
The subsistence minimum moves the tax social benefit (ПСП): 1,845.50 UAH in 2027, available on monthly pay up to 5,170 UAH (ПСП 2027). A full-time employee on 9,546 UAH earns above that limit, so ПСП matters only for part-time and low-hour staff.
Gross to net in Ukraine: ЄСВ, ПДФО and військовий збір
Ukrainian payroll has one employer charge and two withholdings. ЄСВ is paid by the employer on top of gross salary; ПДФО and військовий збір are deducted from gross by the employer acting as tax agent. The rates below apply in 2026, and the Дебет-Кредит analysis of the 2027 draft expects no change.
| Charge | Rate and bearer | When paid (bank payout) |
|---|---|---|
| ЄСВ | 22% of gross, employer, on top; 8.41% for employees with disabilities | With each payout; final date the 20th of the following month |
| ПДФО | 18% of gross, withheld from the employee | At the moment salary is paid |
| Військовий збір | 5% of gross, withheld from the employee | At the moment salary is paid |
Legal basis: ЄСВ 22% and the minimum-base rule, Law №2464-VI, art. 8(5); ПДФО 18%, Tax Code, p. 167.1; військовий збір 5%, Tax Code, section XX, subsection 10, p. 16-1, sub-p. 1.3. Payment timing per the rate table in the Дебет-Кредит 2027 salary taxation analysis. For cash payouts ПДФО and військовий збір are due within three banking days.
Worked example: employer cost at three salary levels in 2027
Employer cost is gross plus ЄСВ; take-home pay is gross minus 23% in withholdings. The table applies the 2027 draft figures to a main-job employee without ПСП. At 250,000 UAH gross the ЄСВ base stops at 190,920 UAH, so the employer charge is capped at 42,002.40 UAH.
| UAH / month | Minimum wage | Mid-level | Senior |
|---|---|---|---|
| Gross salary | 9,546.00 | 30,000.00 | 250,000.00 |
| ПДФО 18% | −1,718.28 | −5,400.00 | −45,000.00 |
| Військовий збір 5% | −477.30 | −1,500.00 | −12,500.00 |
| Net to employee | 7,350.42 | 23,100.00 | 192,500.00 |
| Employer ЄСВ 22% | 2,100.12 | 6,600.00 | 42,002.40* |
| Employer cost | 11,646.12 | 36,600.00 | 292,002.40 |
| Taxes / employer cost | 36.9% | 36.9% | 34.1% |
* ЄСВ capped at 22% of 190,920 UAH.
For budgets kept in dollars: the draft budget assumes an average rate of 47.1 UAH per US dollar in 2027 (Дебет-Кредит). At that rate the 30,000 UAH role costs about $777 a month and the minimum-wage role about $247. Plan with your own treasury rate; the budget figure is a forecast.
Minimum-wage floor and part-time staff
Ukraine applies two separate minimum-wage rules: a pay floor for every employee and a minimum ЄСВ for main-job employees. They are easy to mix up, and the second one is where part-time payroll costs more than expected.
The pay floor applies to everyone, pro rata
An employee who works the full monthly norm must be paid at least the minimum wage (art. 3-1 of the Law on Remuneration of Labour). If a salary for a full month is 7,000 UAH, the employer adds a 2,546 UAH top-up in 2027 so the total reaches 9,546 UAH. Part-time staff and staff who worked part of the month get the floor in proportion to hours worked: half the norm means at least 4,773 UAH.
The ЄСВ minimum applies to the main place of work
If the ЄСВ base of a main-job employee is below the minimum wage, the employer pays ЄСВ as if the base were the minimum wage (Law №2464-VI, art. 8(5)). Worked example for a half-time main-job employee in 2027:
- Gross 4,773.00 UAH; ПДФО 859.14 and військовий збір 238.65 withheld; net 3,675.21 UAH.
- With a ПСП application on file, ПДФО drops to 526.95 UAH ((4,773 − 1,845.50) × 18%) and net rises to 4,007.40 UAH.
- Employer ЄСВ 2,100.12 UAH, the full minimum, equal to 44% of this gross salary.
Exceptions to the ЄСВ minimum: pay from a secondary job, contracts with non-fixed working hours, employees with disabilities on reduced rates, staff hired after the first or dismissed before the last working day of the month, and a full month of unpaid leave (list of exceptions).
Payroll for a foreign company with a Ukrainian team
A foreign group that employs people in Ukraine runs payroll through the Ukrainian employer, usually its ТОВ, which withholds ПДФО and військовий збір, pays ЄСВ and reports to ДПС as tax agent. Three points shape the 2027 budget:
- Headcount cost. Use gross × 1.22 below the 190,920 UAH cap and gross + 42,002.40 UAH above it.
- Currency. Salaries are paid and taxed in hryvnia, so a dollar or euro budget carries rate risk between approval and payout.
- Contractors. Paying people as ФОП contractors is a separate regime. Under the IMF benchmarks listed in July 2026 the government is to submit rules against abuse of the simplified system by the end of December 2026; the June 2026 IMF commitments name disguised employment through ФОП among the targets (IMF benchmarks). Our guides on payroll taxes in Ukraine and ФОП vs ТОВ cover the difference.
Automating Ukrainian payroll with human approval
Payroll automation in Ukraine means the calculation, register and filing data are produced by software and a named person approves the payout and signs the reporting. The FINMOZG Payroll Agent runs gross-to-net for every employee, computes employer ЄСВ at 22% and withholds ПДФО at 18% and військовий збір at 5%, then produces payslips, the payroll register, the payment batch and the declarations. The run stops at Awaiting approval. Money moves and filings go to ДПС only after that approval and a КЕП signature.
5 reasons finance teams trust this setup
- The payroll engine is deterministic: the same inputs always give the same figures, line by line.
- Payroll release and filing always require a human; the agent never disburses pay on its own.
- Submissions to ДПС wait for a valid КЕП signature from an authorised signer.
- Every approval and signature lands in an immutable, hash-chained audit log.
- Payroll deadlines sit on the same compliance calendar as ПДВ.
Tax workflows and payroll are part of the Business plan at $69 a month per legal entity; ФОП start on Starter at $9 (see pricing). To check a single salary or your ФОП payments, use the free Ukraine tax calculator. Its minimum-wage field still shows an older default, so type 9,546 for 2027.
Run January 2027 payroll on the new minimum. See your gross-to-net register, employer ЄСВ and payment batch prepared by the Payroll Agent, ready for your approval.Book a Payroll Agent demo →