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Ukraine Overhauls Military Pay and Employee Reservation Rules Starting July 1

Зміни в системі оплати праці військових та правил бронювання працівників набирають чинності з першого липня.

Key Social Policy Updates in Ukraine Taking Effect July 2026

Starting July 1, 2026, Ukraine introduces significant changes affecting pensioners, military personnel, employers, and entrepreneurs. While no across-the-board pension increase will occur, age-based supplements remain in place. Electricity and gas tariffs stay unchanged. A new payment system for service members will be implemented, along with revised employee reservation rules and updated bank details for military levy payments. These adjustments come amid ongoing wartime conditions, reflecting the government's efforts to balance fiscal constraints with targeted support.

As of late June, the Verkhovna Rada did not pass Bill No. 15224-5, which proposed raising the minimum pension from UAH 2,595 to UAH 7,387 starting July 1 and to UAH 7,591 from October 1. Lawmakers also failed to approve changes increasing the general subsistence minimum to UAH 9,906 in July and UAH 10,180 in October. Consequently, no broad pension hike will take effect on July 1, 2026. The last major pension indexation occurred in spring 2026.

Age-Based Supplements and Utility Tariffs

Age-related pension supplements remain active. These include:

  • UAH 300 per month for individuals aged 70 to 74;
  • UAH 456 per month for those aged 75 to 79;
  • UAH 570 per month for citizens aged 80 and above.

The residential electricity tariff stays at UAH 4.32 per kWh, while the natural gas tariff for Naftogaz of Ukraine customers remains at UAH 7.96 per cubic meter. A moratorium on gas tariff increases during martial law continues to apply.

Regarding subsidies, most recipients will see their assistance automatically reassigned. However, citizens who have experienced changes in household composition, income, or property status—as well as internally displaced persons, renters, and those living outside their registered address—must reapply to the Pension Fund. For most internally displaced persons, state support will continue automatically.

Starting in July 2026, military personnel will begin receiving payments under a new system that took effect on June 1, 2026. This framework includes:

  • A monthly additional payment of UAH 10,000 for service members not receiving other rewards;
  • UAH 20,000 per day for performing specific combat missions;
  • UAH 40,000 per day for assault operations deep in enemy defenses;
  • UAH 100,000 for capturing an enemy combatant;
  • UAH 15,000 for confirmed close-quarters elimination of an enemy.

New employee reservation rules have also been introduced under Cabinet of Ministers Resolution No. 692. Companies must re-certify their critically important status by September 1, 2026, and meet updated salary criteria. They are required to monitor reservation quotas and submit documents through the Diia portal in a timely manner.

Additionally, the State Tax Service has announced new account details for military levy payments effective July 1, introduced by State Treasury Service Order No. 197. These changes will impact both government operations and the business environment across Ukraine.

The introduced social policy and payment system changes reflect the state's efforts to adapt to wartime conditions while ensuring support for vulnerable groups, including pensioners and military personnel.

Despite the lack of a general pension increase, age-based supplements and new military payments may improve the financial standing of certain citizen categories. However, uncertainty surrounding the minimum pension and subsistence minimum could raise public concern, especially amid inflation and rising service costs. The revised employee reservation rules and military levy payment procedures also highlight the need for businesses to adapt to new wartime realities.

In addition to the changes in military pay and employee reservation rules, Ukraine's government has also approved new military contracts with fixed service durations. This move is part of a broader strategy to enhance military structure and ensure stability during ongoing wartime conditions, reflecting the government's commitment to supporting its armed forces.