Ukraine allocates nearly $5 million in compensation to employers hiring IDPs

The Ukrainian government has allocated 181 million UAH ($4.7 million) in compensation   to employers who hired internally displaced persons (IDPs) in 2023, Deputy Economy Minister, Tetiana Berezhna, said in a press release on Jan. 8.

"Over 8,000 employers received government compensation in 2023 for employing 14,400 Ukrainians forced to relocate from high-risk regions,” Berezhna said.

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This year, the compensation for those hiring IDPs has seen an increase. Starting from Jan. 1, it has been raised to 7,100 UAH ($186) per month, with an additional increase to 8,000 UAH ($210) from April, she said.

The compensation payment period has also been extended from two to three months. Employers hiring internally displaced persons with disabilities are eligible for compensation for up to 6 months.

To access these funds, employers must establish an employment contract (including part-time) or a gig contract with an IDP and apply for compensation through the Diia Portal or in paper form at an employment center, along with the necessary documentation.

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This compensation is part of a program launched in April 2022 to incentivize business owners to hire internally displaced persons. For each employed IDP, the state compensates the employer an amount equivalent to the minimum wage (as of Jan. 1, 2024 - 7,100 UAH or $186) for 3 months, while for the employment of IDPs with disabilities, the compensation extends to 6 months.

As of November 2023, 3,5000 displaced persons have received vouchers for retraining.

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