Ukraine Army Reform: Zelensky Announces 300,000 UAH Combat Pay and Fixed-Term Contracts

For non-combat personnel serving in rear areas, the minimum base salary is rising from 20,000 to 30,000 hryvnias per month . The increase matches the country's average monthly salary, which has steadily risen during the war .

For frontline infantry soldiers, the leap is far more dramatic. The average compensation is now approximately 300,000 hryvnias per month, up from roughly 170,000 hryvnias . With additional combat bonuses factored in, some reports state that total monthly pay for infantry on the frontline could reach up to 460,000 hryvnias .

The government has already committed to begin disbursing these higher payments in June 2026, with the Cabinet of Ministers approving the final implementation mechanisms .

Fixed-Term Contracts Replace Indefinite Service

The most significant structural reform is the introduction of fixed-term military service contracts, effectively ending the era of "indefinite" service under martial law for infantry and assault personnel .

The new system offers three distinct contract types with clear end dates :

• Infantry-Assault Contract (10 or 14 months)
• Combat Contract (24 months)
• Basic Contract (24 months)

These are described as "significantly stronger" contracts, offering higher guaranteed pay and incentives tied directly to combat performance . Soldiers will receive a guaranteed deferment from further mobilization upon completing their contract terms . The entire contract process can be completed digitally through the Army+ app, speeding up recruitment and reducing bureaucracy .

The reform also includes a specific fast-track return mechanism for soldiers who went AWOL—one of the war's most persistent and demoralizing problems—allowing them to sign a new contract and rejoin their units under the improved conditions .

A Predictable Path Out: Phased Discharge for Long-Serving Soldiers

A key demand from soldiers and their families has been a clear endpoint to service. The reform introduces a mechanism for the gradual demobilization and discharge of personnel who have been fighting the longest . While the exact schedule is still being defined by the Defense Ministry, the principle is established: those who have borne the heaviest burden for years will finally have a predictable path back to civilian life .

Opening the Ranks: Foreign Volunteer Recruitment

Zelensky explicitly ordered the government to launch a dedicated campaign to actively recruit foreign volunteers to join the Ukrainian Armed Forces . The government will approve a specific mechanism for this initiative, and importantly, foreign volunteers will serve under the exact same contract terms and conditions as Ukrainian personnel . This signals an effort to professionalize and regularize the role of the International Legion within the force structure.

How It’s Funded: A Record Budget and an EU Loan

The financial firepower behind the reform comes from a record-setting defense budget. On June 10, 2026, the Verkhovna Rada approved amendments that raised the 2026 security and defense budget to an unprecedented 4.4 trillion hryvnias (approximately €85–98 billion), an increase of 1.56 trillion hryvnias (about $34.7 billion) from the original budget .

Of this vast sum, 2.3 trillion hryvnias is allocated for weapons and military equipment procurement, and more than 1.45 trillion hryvnias is dedicated solely to military pay .

This budget expansion is only possible because of the €90 billion EU loan for 2026–2027. Approved by the European Parliament on February 11, 2026, and finalized by the EU Council in April, the loan is divided into €60 billion for defense and €30 billion for macro-financial and budget support . Ukraine expects to receive €45 billion in disbursements this year alone, with €31.8 billion going directly to defense and security needs . The loans are structured as limited-recourse borrowing, with Ukraine only obligated to begin repayment once it receives reparations from Russia .

Ukraine is also seeking an additional $20 billion from its allies for weapons procurement on top of the budgeted amounts .

What This Means for Ukraine’s War Effort

This reform represents the most comprehensive overhaul of Ukraine's military service system since the full-scale invasion began. It directly confronts the war’s most serious internal challenge: keeping enough trained, motivated infantry in the fight.

By offering dramatically more money, clear service timelines, and a guaranteed end date, the government aims to improve retention of experienced troops while attracting new volunteers. The addition of foreign fighters under formalized contracts adds a new dimension to force generation. The key test will now be execution—specifically, how quickly the government, Defense Ministry, and military command can operationalize the new contract types, begin the increased payments in June, and manage the complex logistics of phased demobilization while continuing active combat operations .