Over 200 billion hryvnias a year: there are plans to allocate the military levy to fund payments to the Armed Forces of Ukraine
7 May 12:27
The Verkhovna Rada’s Budget Committee has recommended the adoption of Bill No. 15167, which proposes changes to the mechanism for distributing the military levy. The initiative stipulates that starting in 2027, funds from the levy will be directed to a special state budget fund and used exclusively for the pay of Ukrainian military personnel. This was reported by Roksolana Pidlasa, chair of the Verkhovna Rada Budget Committee, according to "Komersant Ukrainian"
What the deputies are proposing
Bill No. 15167 stipulates that the military levy should be directed not to the general fund of the state budget, but to a special fund.
“The Committee reviewed the draft amendments to the Budget Code regarding the allocation of the military levy to a special fund of the state budget (#15167) and recommended that the Verkhovna Rada adopt it immediately as a basis and in its entirety,” Pidlasa said.
According to preliminary estimates, this mechanism will allow for the accumulation of over 200 billion hryvnias annually.
These funds are planned to be directed toward the financial support of servicemen in the Armed Forces of Ukraine.
When the new rules may take effect
The new model is proposed to be introduced starting in early 2027.
It is scheduled to take effect:
- from 2027;
- for three years after the end of the war;
- provided the bill is passed by the Verkhovna Rada.
This refers to a period during which the increased military levy of 5% will remain in effect for another three years after the official end of martial law.
Why this matters
Currently, nearly all domestic revenues of the state budget are already directed toward defense. Ukraine finances its army, the procurement of weapons, ammunition, and equipment, as well as payments to military personnel, primarily using its own resources.
At the same time, international aid largely covers civilian expenditures—social benefits, salaries for public sector employees, pensions, and other state needs.
Once the war ends, the situation may change: civilian expenditures will gradually return to their normal structure, and the volume of international support may decrease. That is why lawmakers are proposing to establish a transparent mechanism for funding military salaries in advance.
What led to the bill
The initiative emerged against the backdrop of several bills proposing different models for distributing funds from the increased military levy.
Previously, Law No. 4835-IX was adopted, which provides for the extension of the 5% military levy for another three years after the end of martial law.
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What salaries do military personnel receive
The pay of military personnel depends on their position, rank, length of service, branch of service, and location of duty.
According to the Ministry of Defense, the minimum pay is 20,130 UAH.
At the same time, the total amount can exceed 120,000 UAH per month if a soldier receives additional payments for performing combat missions.
What additional payments are provided
An important part of military personnel’s income consists of additional payments, often referred to as “combat pay.”
| Amount of the payment | Who is eligible |
|---|---|
| 100,000 UAH | to military personnel directly participating in combat operations on the front lines |
| 50,000 UAH | Those performing duties in headquarters and command structures that direct units on the front lines |
| 30,000 UAH | to military personnel carrying out combat orders outside the immediate front lines |
It is precisely these payments that require stable funding, as they are directly linked to combat operations and life-threatening risks.
Why the military levy was retained after the war
On April 14, President Volodymyr Zelenskyy signed a law extending the increased military levy of 5% for another three years after the official end of martial law.
This decision is linked not only to defense needs but also to Ukraine’s international financial obligations.
Extending the military levy is one of the conditions for continued cooperation with the IMF and receiving macro-financial assistance. International partners expect Ukraine to strengthen its own budgetary resources to cover the deficit.
What will change for the budget
If the bill is passed, the military levy will become a more targeted instrument. The funds will not be absorbed into the general budget fund but will be directed toward a specific need—the financial support of the military.
This could increase transparency in the use of funds and make it clearer to taxpayers exactly where their contributions are going.
A vote in the Rada is expected on May 12.
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