No raises, but new contracts: what the 2026 budget plans mean for the Ukrainian military

5 December 19:11

Defense Minister Denys Shmyhal said that the draft state budget for 2026 does not provide for an increase in the salaries of military personnel, but the government plans to introduce a new form of contract service with improved conditions.

He said this during an hour of questions to the government in the Verkhovna Rada, Ukrinform reports, "Komersant Ukrainian".

What the government said

According to Shmyhal, fixed payments for the military in 2026 will remain at the current level. At the same time, the ministry proposes to introduce an updated contract model that will allow servicemen – both new recruits and those who are already serving – to switch to conditions with higher payments and an expanded social package.

The Cabinet of Ministers expects that such a system will become a motivator for wartime service and will allow for a more accurate allocation of budget resources without increasing the overall cost of maintaining the army.

The Defense Ministry assures that military salaries are paid on time and in full

Despite the absence of an increase in payments, the Ministry of Defense assures that military salaries are paid on time and in full, and this trend will continue in 2026. The minister also said that the defense ministry has allocated an additional UAH 2.1 billion for the development of drone capabilities, which remains one of the key priorities in the defense budget structure.

What it means for the military

New contracts can become a tool for targeted financial incentives within a limited budget. In fact, the government is not relying on a general increase in wages, but on targeted improvements in conditions for those who are willing to serve longer or move to specific combat positions.

At the same time, the absence of indexation may cause a debate against the backdrop of a high workload for the army and rising expectations in the military community.

Марина Максенко
Editor

Reading now