Employer of Record in Ukraine

For companies building teams of 10 or more across business, technical, and operational functions — not for individual hires.
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Why companies build teams in Ukraine

Lundi's story started in Ukraine. Since 2013 we've operated client teams in Ukraine ranging from 40 to 500 people, primarily in software engineering and HR/recruitment functions. We remain ready to operate in Ukraine and continue to support Ukrainian talent, often by employing in Poland or other European markets where the relocated talent now lives.

Languages

Ukrainian

Payroll Frequency

Twice Monthly

Currency

UAH

Capital City

Kyiv

Employer Tax Rate

22.00%

Lundi's story started in Ukraine. Since 2013 we've operated client teams in Ukraine ranging from 40 to 500 people, primarily focused on software engineering and HR/recruitment delivery — including a Kyiv-based operation supporting Randstad Poland's cross-border recruitment activity that placed over 1,000 hires per year of Ukrainian talent into Polish operations. That cross-border operating model became the conceptual foundation for how Lundi operates today across 70+ markets.

Our founder's track in CEE goes deeper: a leadership role on Google's first CEE acquisition (which at the time was the largest venture-backed exit in Ukraine), subsequent leadership of a regional CEE e-commerce company acquired by Ukraine's largest marketing agency, building an AI research lab focused on computer vision for e-commerce, and a stint in China launching a cross-border e-commerce platform. The Ukrainian and CEE markets are not where we expanded into — they're where Lundi came from.

Ukraine has one of CEE's strongest engineering ecosystems — Grammarly, GitLab, Petcube, MacPaw, Ajax Systems, plus extensive global outsourcing operations (EPAM, SoftServe, Luxoft, Sigma Software, N-iX). Operations within Ukraine continue to function. The practical consideration for international employers today is staffing continuity — with the war ongoing, individual team member availability cannot be guaranteed in the way it can in non-mobilized markets. For most companies we recommend sourcing the relocated Ukrainian talent in Poland, Romania, or Germany. For companies that specifically want Ukraine on the ground, we know how to do it.

Why companies build teams here

Lundi's history in Ukraine. Lundi's story started in Ukraine. Since 2013 we've operated client teams in Ukraine ranging from 40 to 500 people, primarily focused on software engineering and HR/recruitment delivery. The largest of these was a Kyiv-based operation supporting Randstad Poland's cross-border recruitment activity — ultimately placing over 1,000 hires per year of Ukrainian talent into Polish operations. That cross-border operating model became the conceptual foundation for how Lundi operates today across 70+ markets.

Our founder's track in CEE goes deeper: a leadership role on Google's first CEE acquisition (which at the time was the largest venture-backed exit in Ukraine); subsequent leadership of a regional CEE e-commerce company that was acquired by Ukraine's largest marketing agency; building an AI research lab focused on commercializing computer vision for e-commerce use cases; and a stint in China launching a cross-border e-commerce platform. The Ukrainian and CEE markets are not where we expanded into — they're where Lundi came from.

The talent ecosystem. Ukraine built one of CEE's strongest engineering sectors over the 2000s and 2010s — Grammarly (Ukrainian-founded, US-incorporated, multi-billion valuation), GitLab (Ukrainian-founded), Petcube, MacPaw, Ajax Systems, Preply, Reface, plus extensive outsourcing operations (EPAM Ukraine, SoftServe, Luxoft, Sigma Software, N-iX). Senior backend, full-stack, mobile, and machine learning depth has been among Europe's best for two decades. That engineering depth has not gone away.

Where things stand today. Operations within Ukraine continue to function. Power, connectivity, and the broader operating infrastructure have stabilized substantially through 2024–2025; international companies operating in Ukraine today do so with redundant power and connectivity, distributed locations, and clear protocols. The Ukrainian government has actively supported tech industry continuity through programs like Diia City (the virtual economic zone for IT companies).

The practical consideration for international employers today is staffing continuity. With the war ongoing, the availability of any individual team member cannot be guaranteed in the way it can in non-mobilized markets — something to weigh against the talent quality and cost advantage. For most companies building teams of 10+, we recommend sourcing the relocated Ukrainian talent in its current geography — typically Poland (the largest destination for relocated Ukrainian engineers and operators), Romania, Germany, or the Baltics. The talent quality is the same; the staffing continuity is more predictable.

For companies that specifically want to operate in Ukraine on the ground, we know how to do it. We've been operating client teams in Ukraine since 2013.

Operating context. Ukraine is on EET/EEST (UTC+2/+3) — full European working-hours overlap, early-morning overlap with US East Coast. English proficiency among Ukrainian tech and outsourcing professionals is strong (the sector has served Western clients for two decades). Diia City status (the virtual economic zone for IT companies) offers significant tax structuring — 5% personal income tax for IT specialists, 18% CIT or 9% on distributed profit (a unique tax-on-distribution model), and labor law flexibility. Hryvnia (UAH) is the local currency.

Cost of Employment in Ukraine

What it costs to employ someone through Lundi.

Lundi's cost is the all-in cost of the employee — gross salary plus statutory employer contributions plus customary benefits — and a Lundi management fee on top. The management fee depends on team size and scope: smaller teams pay a higher per-head rate, teams of 20+ get materially better unit economics, and Build–Operate–Transfer engagements are structured separately.

The alternative paths look like: setting up your own local entity (meaningful months of legal and accounting work, plus ongoing in-country HR, payroll, and compliance infrastructure), engaging a local recruitment agency on contingency (typically a percentage of first-year compensation, paid once, with no ongoing employment relationship), or hiring as a contractor (lower upfront cost, real misclassification risk in most jurisdictions). Lundi is faster than entity setup, structurally different from contingency recruitment, and lower-risk than contractor arrangements.

Talk to us for specific pricing.

Talk to us about Ukraine

Employer Tax Costs in Ukraine

In Ukraine, an employer’s total social contributions are 22% of an employee’s salary.

Employee Income Taxes in Ukraine

Employees in Ukraine are taxed 18% regardless of their income bracket. In addition, employees’ income is also subject to a military tax of 1.5%.

Employee Probation in Ukraine

The maximum probation period is one month for non-qualified employees. For specialists and managers, the probation period is three months.

Employee Overtime in Ukraine

A work week in Ukraine is 40 hours per week and typically eight hours per day. Employees are entitled to two days off every week.In Ukraine, a maximum of four hours of overtime is permitted during two consecutive days at a time. An employee can’t work more than 120 hours overtime per year.Overtime on weekdays and public holidays is paid at 200% of an employee’s regular hourly wage, and this cannot be compensated by providing an additional day of rest.If an employee works on their day of rest, they are paid 200% of their regular hourly wage, or that employee must be given another day of rest instead.

Employee Notice in Ukraine

Notice periods in Ukraine can vary depending on the reason for termination. However, no notice period applies if the employer and employee consensually agree on termination.

In Ukraine, notice for dismissal is generally two months. For resignations, it is generally two weeks.

Termination in Ukraine

The amount of severance pay employees in Ukraine are entitled to depends on the reason for termination and the employee’s seniority. If an employee terminates their contract for violation of agreement or law, they are entitled to a severance pay of three average salaries.‍In most other cases, severance pay is one month's salary in addition to the notice period pay (if provided in lieu of actual notice period), compensation for unused vacation pay, and other benefits.‍Corporate officers are entitled to a severance pay of six months of average salary.

How Lundi works in Ukraine

Build

We scope your team and recruit the right people in-country — finance, accounting, HR/payroll, BD, ops, or IT.
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Operate

We employ the team via our local entity and run the day-to-day — payroll, compliance, HR, and performance management.
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Transfer

When you're ready, we transition the team to your own legal entity. Or stay on Lundi's infrastructure indefinitely — your choice.
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Why Companies Choose Lundi

If you need help with anything, we're here for you

Who is Lundi for?

Lundi works with companies building teams of 10 or more across business, technical, and operational functions . Not for one-off hires or individual placements.

How is this different from an EOR?

EOR platforms employ individuals for you. Lundi recruits, employs, and operates concentrated teams — including day-to-day management, HR, and an optional path to your own entity. It's the operating model for companies that have outgrown the EOR ceiling.

Still have any questions? Talk to us.