Employee tuition at the employer’s expense: what should be known about taxation

Press service of the State Tax Service of Ukraine, published 31 August 2026 at 12:21 Chapter: News

Employer may pay for the employee’s tuition and under certain conditions such payment will not be considered as taxable income.

In particular:

- it must be Ukrainian institution of higher or vocational education;

- cost of such tuition must not exceed 25 941 UAH for one month of training. That is, it must not exceed three times the minimum salary established on January 1 of relevant year.   

The minimum salary is set at 8 647 UAH per month as of January 1, 2026. So, its triple amount is 25 941 UAH. This amount for each month of tuition is not subject to the personal income tax and military levy. 

It is not necessary to pay for tuition every month. Employer can immediately transfer funds for several months or for the entire period of tuition. In this case, the tax-free limit is determined for each full or incomplete month of tuition.  

What if the cost of tuition is higher than the established limit?

If payment amount exceeds 25 941 UAH per month, not the entire cost of tuition is taxed, but only the excess amount.

For the employee, it is considered additional benefit and is subject to the personal income tax at the 18% rate and military levy of 5%.

Does employee need to declare payment for tuition?

No. If the cost of tuition meets conditions of the Tax Code of Ukraine and does not exceed the established non-taxable limit, the employee does not need to declare such amount and pay taxes on it.

If the cost of tuition exceeds non-taxable limit, the excess amount is taxable. Personal income tax and military levy in this case are accrued, withheld and paid by the employer as a tax agent. Employee does not need to submit separate declaration only because of the receipt of such income.