Indexation for military personnel

Who is eligible for indexation?

The issue of salary indexation remains one of the most pressing issues for Ukrainian defense attorneys. Despite this right being guaranteed by law, in practice, military personnel often face underpayments or complete non-payment. Let's take a closer look at how this mechanism works and what to do if your payment is not received. We'll also discuss how the services of "Prikhodko&Partners" Law Firm can help you.

What is indexing and why is it important?

Indexation is a special government mechanism created to support citizens' purchasing power. As prices for goods and services constantly rise due to inflation, the real value of the money received decreases. Indexation is intended to partially or fully compensate for this depreciation.

According to the law, all income of citizens that is not of a one-time nature is subject to indexation. Since a military service member's salary is their permanent income, it must be indexed. This is not a bonus or a premium from a commander, but a social guarantee established by law.

Legislative framework

The main document regulating this issue is the Law of Ukraine "On the social and legal protection of military personnel and their families." Article 9 of this regulatory legal act clearly states that monetary support is subject to indexation in accordance with the law. Furthermore, the process is regulated by the Law "On the indexation of monetary incomes of the population" and Procedure № 1078, approved by the Cabinet of Ministers.

An important detail: indexation must be calculated and paid simultaneously with the payment of the basic salary for the corresponding month. This means that when receiving their monthly salary, a service member should already see the indexation amount included in it if grounds for it arise (the inflation threshold has exceeded the established limit).

Who is eligible for payments?

All categories of military personnel, regardless of branch of service or rank, are eligible to receive indexed pay. This includes:

• military personnel of the Armed Forces of Ukraine (AFU);
• fighters of the National Guard of Ukraine (NGU);
• employees of the State Border Guard Service (SBGS);
• members of the Security Service of Ukraine (SBU);
• military personnel of other legitimate military formations, including intelligence and special services.

This right arises automatically once inflation exceeds the 103% threshold. The only requirement for claims is that the monetary allowance was not indexed for a given period or was calculated with errors.

Typical problems and violations by military units

Unfortunately, military personnel often receive incomplete payments. The most common issues include:

1. Complete lack of accruals. The military unit simply ignores its obligation to calculate indexation for months or even years.
2. Incorrect base month. This is the key problem. The base month is considered to be the month in which the salary increase occurred. For a long time, military units considered January 2016 to be the base month, although in fact, March 2018 (when salaries changed significantly) should be used for many periods. The incorrect date results in the loss of thousands of hryvnias monthly.
3. Citing a lack of funds. Commanders often explain non-payment by citing a lack of budgetary allocations. However, the Supreme Court has repeatedly emphasized that a lack of budgetary funds is not grounds for the state to fail to fulfill its obligations.
4. Concealment of information. Military personnel often don't know how to verify accruals, and indexation may not be listed as a separate line item on pay slips.

So, these are the key reasons why a military service member does not receive an indexation of his pay.

Periods during which debts most often arise

Most disputes concern previous years, when indexation was calculated using outdated or erroneous formulas. Legal practice identifies the following key periods:

• 2016–2018: a period during which no accruals were made at all due to budget disputes;
• 2018–2020: the period following a major salary reform, where the main problem was the incorrectly determined base month;
• the current period: martial law has increased the workload on finance departments, which also leads to technical errors or calculation delays.

However, for each of these periods, you can recover unpaid amounts by seeking professional legal assistance. This will significantly facilitate the process of defending your rights.

Step-by-step algorithm for protecting rights

If you discover that you have not been paid indexation, you should do the following:

• Step 1: Report or application. If you are still serving, submit a report to your unit commander requesting the accrual and payment of indexation for a specific period. If you have already been discharged, submit a written application to your military unit.
• Step 2: Obtaining evidence. Request a salary certificate and an extract from the order of removal from the unit (if you were discharged). The certificate must clearly state the amounts accrued.
• Step 3: Filing a lawsuit. Since military units rarely agree to payments voluntarily (due to bureaucratic complications with the treasury), the only effective method is an administrative lawsuit. Courts in Ukraine usually side with military personnel in such cases.
• Step 4: Enforcement of the decision. Once the court decision enters into legal force, the military unit is obligated to recalculate and pay the funds. In the event of a delay, enforcement agencies can be involved.

Remember that indexation is not a gift, but your legal right to protect your income from inflation. Our military lawyers are ready to assist you at every stage. Need help from a military lawyer? Leave your phone number by filling out the form on our website, and a lawyer will contact you shortly.