The tax wedge is the share of taxes and contributions in the employer's total cost of a worker: personal income tax, military levy and ESV combined.
The tax wedge is the share of taxes and contributions in the employer's total cost of a worker. It shows how much of the money a business spends on labour goes to the state and how much goes to the employee.
In Ukraine, 18% personal income tax and 5% military levy are withheld from gross pay, and the employer pays 22% ESV on top. For a gross salary of UAH 30,000 the total cost is UAH 36,600, of which taxes are UAH 13,500, a wedge of 36.9%.
The scale is flat, so the wedge is the same for the minimum wage and a high salary as long as pay does not exceed 20 minimum wages: above that ESV is not charged and the share of taxes falls.
In detail, with examples: How much tax you really pay in Ukraine: salary, VAT, excise and a worked example
Personal income tax Military levy Single social contribution (ESV)
Checked against official sources on October 29, 2026. When a figure changes, it is updated on every page of the site.
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The tax wedge on salary, VAT in receipts and utility bills, fuel and tobacco excise, a monthly total, taxes on savings and property, sole proprietors and the budget.