Ukrainian legislation requires employers to have at least 4% of their employees be persons with disabilities. It is worth noting that “persons with disabilities” or “disabled” refer to persons with disabilities under Ukraine’s legislation and have relevant supporting documents. This requirement is established by the Law of Ukraine “On the Fundamentals of Social Protection of Persons with Disabilities in Ukraine” (adopted on 03/21/91). This requirement applies to all legal entities and entrepreneurs, except for state bodies and enterprises 100% owned by the state. Employers who have seven or fewer employees may ignore this requirement. That is, Ukrainian companies should do everything possible to have a certain number of employees with disabilities on staff. Also, Ukrainian nongovernmental organizations and charities must follow the mentioned requirement.
How many disabled people shall have a Ukrainian employer?
As mentioned above, at least 4% of the Ukrainian company’s staff are disabled. One employee is required if the number of employees is between 8 and 25. If the company is not able to follow this requirement, then a tax can be applied. So consider this information before you decide to open a company in Ukraine. Consider that only the average number of employees per year is calculated. Under Ukrainian legislation, the employer shall submit the salary statement to the government monthly.
What is the tax or fine for violating Ukrainian legislation regarding the employment of persons with disabilities?
Employers in Ukraine often cannot hire the required number of disabled employees. Then, based on the calculation, a tax is paid in the following year. The tax calculation is generated automatically based on the total number of employees, the number of disabled employees, and the average salary using the following example:
| A | Average number of employees in 2024 | 100 |
| B | Average number of employees with Disabilities in 2024 | 2 |
| C | Required number of employees with Disabilities in 2024 | 4 |
| D | Average salary per year in 2024 | 120 000.00 UAH |
| E | Tax | D*(C-B) |
Companies that do not have the required number of disabled employees on staff must pay the state an amount calculated as follows: (I) the number of disabled employees (that is not enough to meet the standard) multiplied (II) by the average salary (per year).
The Social Protection Fund for Persons with Disabilities (Ukrainian authority, that is responsible for managing this topic, managed by the Ministry of Social Policy of Ukraine) notifies the employer of the calculation before the beginning of April of the following year. The employer must pay the tax before the 15th of April. Employers who don’t violate the legislation don’t receive any notification.
