Military Levy Bill Passes First Reading
On Thursday, May 14, Ukraine's Verkhovna Rada approved draft law No. 15167 in its first reading, receiving support from 226 lawmakers. The legislation mandates that revenue from the military levy can only be used to pay military personnel—nothing else. Going forward, all proceeds from this tax will go into a dedicated state budget fund, ensuring the money is spent exactly as intended.
Previously, military levy funds were pooled into the general budget, giving the government flexibility to allocate them across defense and civilian needs as situations evolved. Under the new bill, every hryvnia collected will automatically flow into a separate special fund. These resources may be used solely for the salaries of Ukrainian Armed Forces service members.
Changes in Military Funding
Starting January 1, 2027, and continuing through the end of the third post-war year, the military levy will be directed into this special fund—amounting to over 200 billion UAH annually. These funds are earmarked exclusively for troop pay, a critical step in sustaining the country's defense capabilities. The bill's explanatory note states that its purpose is 'to legally lock in the targeted use of state budget revenues from the military levy for paying service members of the Armed Forces of Ukraine.'
Additionally, in February 2026, Prime Minister Yulia Svyrydenko announced the government is considering keeping the permanent 5% military levy even after the war ends. Starting June 2026, frontline infantry soldiers under special contracts will earn between 250,000 and 400,000 UAH. As of 2025, the base minimum for a recruit is 20,130 UAH, for a ground forces rifleman 20,586 UAH, and for mountain assault units 23,999 UAH.
'This move carries more political weight, since virtually all own-source revenues of the general state budget are already going to defense needs—though that covers both military pay across all defense forces and weapons procurement.' Roksolana Pidlasa, People's Deputy
The approval of this bill underscores the Ukrainian government's growing focus on financially supporting its troops, especially amid the ongoing war. Creating a dedicated fund for the military levy could bring greater stability to service members' pay—a vital factor for morale and national defense. Moreover, retaining the military levy in the future may boost the army's financial independence, a key advantage during wartime.
As Ukraine solidifies its military funding framework, further insights into the allocation of these resources reveal that the military levy will be closely linked to specific defense expenditures. This shift not only ensures dedicated support for service members but also raises questions about the long-term implications for military budgeting. For a deeper understanding of how these changes will affect defense spending, visit the latest updates on military funding in Ukraine.