Ukraine’s Military Levy to Be Tied to Specific Defense Spending

Parliamentary Committee Backs Military Levy Reform

According to Главком: Ukraine’s parliamentary Budget Committee has approved legislative amendments that would designate the military levy for a specific purpose. Under the new proposals, revenue from the military levy would be channeled into a dedicated state budget fund, used exclusively to pay salaries for personnel of the Armed Forces of Ukraine. The committee has recommended that the Verkhovna Rada adopt draft law No. 15167 as a basis and in its entirety. A vote is expected on May 12.

The changes would shift the military levy from the general fund to a special fund, allowing for more efficient use of collected resources. The total annual revenue from this levy exceeds 200 billion hryvnias. This means the funds will be earmarked solely for military pay, marking a significant step in strengthening the country’s defense capabilities.

New Funding Timeline and Service Conditions

The new mechanism is set to take effect on January 1, 2027, and will remain in place until the end of the third year after martial law is lifted. In connection with these changes, starting in December 2024, the military levy rate for most personal income will be 5%. Meanwhile, military personnel’s pay in Ukraine remains exempt from the military levy, further supporting their financial stability.

Roksolana Pidlasa, head of the Budget Committee, noted: 'This step carries more political significance, as nearly all general fund revenues from domestic sources are already directed toward defense needs.'

It is worth noting that draft law No. 15177 had proposed redirecting funds starting in July 2026. By June 2026, infantry soldiers on the front line would receive between 250,000 and 400,000 hryvnias under special contracts, reflecting a rise in military financial support. As of 2025, the base minimum for a recruit will be 20,130 hryvnias, for a rifleman in the Ground Forces-20,586 hryvnias, and for mountain assault units-23,999 hryvnias. These changes aim to improve service conditions and bolster support for military personnel.

On May 6, Ukraine observes Infantry Day, underscoring the importance of backing soldiers and their funding needs.

The committee’s proposed changes are designed not only to increase military pay but also to establish a stable, long-term mechanism for meeting service members’ needs. Creating a special fund will promote more transparent and targeted use of budget resources, especially critical given the wartime challenges the country faces. Since the collected funds will be directed exclusively toward defense, this highlights the priority of military support in state policy.

The recent approval of the military levy reform is part of a broader strategy to enhance defense funding in Ukraine. This aligns with the recent decision to extend the military levy for three years post-conflict, ensuring sustained financial support for military personnel. Such measures underscore the government's commitment to bolstering the Armed Forces during critical times.