Rising oil prices and a recovery in economic growth could put military pay increases back on the agenda in 2018. Previously, the government suspended the indexation of wages, which was due to the lack of free resources in the federal budget. Officials continue to discuss a possible format for increasing salaries, which will depend on the development of the economic situation.
The economic crisis forced the government to optimize state budget expenditures. The authorities also froze the indexation of military pay. Next year, officials plan to resume annual salary indexation, which became possible thanks to the improving economic situation.
The rise in oil prices above $50/barrel. ensured an increase in domestic budget revenues. As a result, the government received additional financial resources that will allow it to increase spending on military allowances. However, the extent of future military pay increases in 2018 remains uncertain.
Representatives of the Ministry of Finance propose to increase military salaries by 4%, which corresponds to economic realities. The head of the Ministry of Finance, Anton Siluanov, emphasizes that future indexation corresponds to the forecast level of inflation. However, deputies do not agree with such an increase in wages.
The State Duma considers such indexation to be insufficient, emphasizing the long period of moratorium on salary increases. The military pay has not been revised for 5 years, which does not correspond to the role played by the Russian armed forces. During this period, the price increase was about 46%, which negatively affected the well-being of military personnel. The real income of the military has decreased by a third, deputies emphasize. Such dynamics contradict the goals set out in the May presidential decrees.
Controversial promotion: in search of justice
The salary of military personnel must correspond to the average level in leading sectors of the economy. These obligations of the authorities are recorded in the May decrees. If in 2014 military salaries exceeded this level by 10%, then in 2016 the situation changed. Salaries in the financial sector reached 80 thousand rubles, and in the energy sector increased to 78 thousand rubles. At the same time, military salaries remained at 62 thousand rubles.
Raising military salaries in 2018 will require significant resources, with recent news indicating the government's intention to increase social spending. The authorities are forced to take into account the approaching presidential elections by increasing pensions and salaries of public sector employees. In addition, there are alternative tools to increase the pay of military personnel.
Despite the lack of indexation, military pay increased due to various allowances. Among other things, the military can count on a salary increase for commanding units or for good physical training. In the latter case, the bonus can reach 80% of the salary. In addition, military personnel can count on annual bonuses related to budget savings.
The government's final decision on future indexation of military salaries will be made based on the development of the economic situation. Experts are considering several scenarios that await the Russian economy next year.
Prospects for the Russian economy
The dominant factor for the Russian budget remains the change in oil prices, experts emphasize. Increase in oil prices to 55-57 dollars per barrel. increases the revenue side of the budget. As a result, the government receives the resources necessary to fully implement the May decrees.
The positive dynamics of external factors allows the domestic economy to move towards growth. Despite the low GDP growth rates (within 1.5-2.5%) next year, officials emphasize overcoming the negative consequences of the crisis.
A further increase in the cost of a barrel may lead to a larger indexation of monetary allowances. The government will be able to compensate for part of the losses that military personnel suffered as a result of the moratorium on salary increases.
The pessimistic scenario allows for a new stage of decline in oil prices. In addition, analysts do not rule out the expansion of existing sanctions, which will negatively affect economic growth rates. In this case, officials will not be able to allocate additional funds to increase the salaries of the military. At the same time, the existing system of bonuses remains in force, which will compensate for the decrease in real incomes of military personnel.
For five years, the indexation of military pay remains frozen. The Ministry of Finance proposes to increase military salaries next year by 4%. Representatives of the department believe that such indexation corresponds to economic realities.
The State Duma believes that indexation at 4% is underestimated. During the moratorium, prices increased by 46%, which led to a significant decrease in the real incomes of military personnel.
In addition to indexation, military salaries will depend on the existing system of allowances, which will remain unchanged in 2018.
Look video about promotion wages in 2018:
Economist. Experience in management positions in the manufacturing sector. Date: October 8, 2018. Reading time 6 min.
In 2019, military salaries will be raised by 4.3%, which will bring the average income to 45,370 rubles. Over the past 5 years, military salaries have been increased only twice: in 2012 by 2–3 times and in 2018 by 4%.
Will there be an increase in military salaries in 2019?
Military personnel are one of the most socially protected categories of Russians. This is precisely the opinion that most officials held for a long time. The basis for such conclusions was an expanded package of benefits and a program to provide affordable housing for the military. Definitely, the military’s income is an order of magnitude higher. But few people thought that the salaries of the defenders of the Fatherland depreciate every year without indexation.
According to deputies of the Defense Committee, military salaries have “fell in price” by 46% since the last significant recalculation of payments in 2012, and purchasing power has fallen by 60%.
The president’s instructions, which stated that military personnel’s salaries should not be lower than the average wages of workers in leading sectors of the economy, which include the oil and gas and financial sectors, are also not being observed.
To provide the military with a decent salary, at the end of 2017, the Ministry of Defense developed 2 options for indexing pay (specific numbers were not advertised).
However, in the final document approved by the Ministry of Finance, the opinion of the relevant committee was not taken into account. But it became known that for 3 years, military salaries will be increased annually by an amount exceeding the inflation rate.
In 2018, salaries for positions and ranks were indexed in January by 4%, for which an additional 67 billion rubles were budgeted.
If indexation continues, expenses will have to increase by 83.9 billion rubles. in 2019 and by 148.4 billion rubles. in 2020. The fact that the salary increase for military personnel will still take place in 2019 was also announced by Tatyana Shevtsova, Deputy Minister of Defense, during a conference call in March 2018.
Quote . "Monetary allowances for military personnel and will be indexed from January 1, 2018, from October 1, 2019 and from October 1, 2020, each time by 4%.”
How much will the salary increase?
Based on statements by the Deputy Minister of Defense, the news was circulated online that the salary increase for military personnel in 2019 would be 4%. However, the resolution states that annual recalculation will be carried out based on the actual amount of inflation.
Therefore, a 4% increase in payments can only be called a planned floating indicator, conditionally tied to the amount of inflation, which usually does not exceed this value.
According to the draft state budget for 2019, military salaries will be increased by 4.3%; in a year this figure will be approximately 3.8%. The final figures will be known after the 2019 budget is approved.
The increase will affect, first of all, monetary allowances in terms of salaries for positions and ranks. The size of the allowances in relative terms will remain unchanged. But if we take into account that all increases for length of service, secrecy, risk, etc. are tied to the size of salaries, this part of the salary will automatically increase, which in some cases amounts to up to 60% of a soldier’s salary.
Promotion deadlines
Since in 2018 the indexation of military salaries was carried out in January, many expected the next increase also at the beginning of the year.
According to the established schedule, salary recalculations should be carried out in October. 2018 was an exception. The October increase in payments, including, was postponed to more early dates by personal Decree of the President of Russia.
In 2019, salary recalculation will be carried out traditionally in October. That is, re-indexation will take place not after 1 year, but after 21 months. In fact, for 9 months of 2019, military personnel will receive pay at the rates approved at the beginning of 2018.
What will be the average salary of military personnel?
According to Rosstat, people who ensure the country's security earn an average of 43,500 rubles in 2018. Accordingly, after the salary increase, the income of defenders of the fatherland will increase to 45,370.5 rubles.
However, the actual amount of military pay depends on many factors: length of service, class qualifications, special working conditions. Therefore, absolute growth is calculated individually.
Table 1. Salary growth in accordance with the assigned rank (selectively)
| Rank | Salary 2018, rub. | Increased salary from October 2019, rub. (calculated) |
| Private | 5 200 | 5 424 |
| Sergeant Major | 7 800 | 8 135 |
| Lieutenant | 10 400 | 10 847 |
| Captain | 11 440 | 11 932 |
| Major | 11 960 | 12 474 |
| Colonel | 13 520 | 14 101 |
| Colonel General | 26 000 | 27 118 |
| Army General | 28 080 | 29 287 |
Source: Ministry of Defense website
Table 2. Salary growth by position (selected)
It just so happened that in Lately military pay increases only on the eve of presidential elections. Before 2018, the previous increase was in 2012, and since 2014, indexation was generally frozen by a separate law for 4 years until 2018. That normative act stopped working on January 1 of this year, and the authorities again returned to indexing the allowances of military personnel. Increase in pay for the military in 2018: latest news regarding indexation of how much military salaries will increase.
There will be no further indexation of wages in 2018
In January 2018, there was an increase in pay for military personnel. Indexation was carried out by 4%, in accordance with inflation forecasts for this year. This is the only indexation of military allowances planned for this year.
Naturally, the lion's share of the military actually feels the decline in real income. Over the 6 years that have passed since the previous increase, prices have become much higher, and the Russian currency has depreciated on the world market by almost 2 times, which naturally reflected in the rise in cost of living for Russian citizens.
One way or another, in terms of the burden on the state treasury, military salaries are a large expense item. And the authorities are simply unable to compensate for the rise in cost of living for them.
In fact, the only thing the government is offering the military now is to agree to the allowance that they currently have. Yes, in real terms the amounts are less than several years ago. However, to be fair, this is still higher compared to the salaries of ordinary workers and, even more so, pensioners.
In the fall of 2017, in the process of preparing the budget for 2018-2020, the government introduced articles to increase allowances for military personnel for the following years.
The military should know: in subsequent years, pay increases will only take place in October.
On October 1, military salaries are usually indexed; 2018 is an exception, since the January indexation was the first in 6 years. In 2019-2020 The indexation of military allowances should take place as planned in October, so in fact the next increase will only take place in 1.5 years.
The indexation percentage previously budgeted by the government is again 4%, at the level of inflation expected by the government. In 2017, in fact, inflation was even less – 2.5%. In 2018, it will probably be around the desired 4%.
However, it should be noted: 4% for 2019-2020. - an approximate figure that has not yet been reflected in financial documents. The government will include specific figures in the budget when the real inflation in Russia in 2018 for the entire reporting period is clear.
As the RBC publication wrote in 2017, for the period 2018-2020. The authorities will allocate an additional 300 billion rubles to increase allowances for military personnel. Which means that every 7th ruble of the budget will go to their salaries, which will amount to 14% of government spending.
Let us note that in this case, everything that we say in relation to the military concerns not only them, but also many other law enforcement agencies equated to the military in Russia:
- police,
- Russian Guard,
- FSIN,
- state fire service,
- Foreign Intelligence Service.
In the last decade Russian government initiated a number of reforms in the military sphere aimed at increasing the efficiency of the army, modernizing equipment, optimizing its strength and management structure, as well as increasing the prestige of service in the armed forces.
For several years, military salaries have been regularly increased. In addition, they were promised that the authorities would take care of official housing and social guarantees for representatives of law enforcement agencies. However, as the crisis deepened, the authorities had to abandon some of the social initiatives - in 2016 it was announced that military salaries would not be subject to indexation, but there could be no talk of increasing the amounts of allocations.
This is because there are simply no free funds in the state treasury. Of course, many noted that this decision goes against the “May Decrees”, which back in 2012 announced a gradual increase in salaries for all categories of public sector employees to 150-200% by the end of 2018. Let's figure out what career military and civilian employees working in the Ministry of Defense should expect in the new calendar period.
It seems that the salary increase in accordance with the “May decrees” has been postponed for now
How are military salaries determined?
The opportunity to serve in the army on a contract basis has opened up new employment prospects for Russian citizens. Of course, at the beginning of a military career, while the soldier does not yet have a rank or work experience, there is no need to talk about significant amounts, but later the salary begins to grow at a significant pace. The salary paid to the military directly depends on several factors, including:
- salary determined by the rank to which a person has risen and his position in the ranks of the armed forces of the Russian Federation;
- location of the military unit;
- special conditions for the secrecy of service in a certain place or branch of the military, which add up to 65% to the salary amount;
- successful completion qualifying exams, which can add up to 30% to the salary;
- allowance for risky conditions of service, reaching up to 100%;
- bonuses in the form of 100% of salary for special achievements;
- bonuses awarded for excellent service (they can reach up to 25% of salary);
- 100% salary bonuses awarded for particularly difficult working conditions in the northern regions;
- compensation intended to pay for rented housing;
- additional one-time salaries for settling in a new place, and the serviceman himself can be paid an amount of 100% of the salary, and his family members - 25% of this amount.
If we talk about military salaries, taking into account rank and position, then the following gradation can be given:
- military personnel with the rank of warrant officer and sergeant receive a minimum salary of 30,000 rubles;
- a lieutenant's salary reaches 60,000 per month;
- the captain can receive up to 65,000 in national currency;
- lieutenant colonel - about 80,000 rubles;
- colonel - 95,000 rubles;
- representatives of the high command - more than 100,000 rubles monthly.
Salaries in the armed forces depend on rank and conditions of service. According to official statistics, a career officer has an average salary that is significantly higher than the average salary of the Russian civilian population. Today, the government says that the military receives about 50,000 rubles a month, and this, even in the current times of crisis, is quite a good remuneration for work. Especially when you compare this figure with the salaries paid to teachers or doctors.
This government policy is a measure aimed at increasing the prestige of the profession. It is she who should attract the maximum part into the army ranks male population countries. Separately, it is necessary to note the additional benefits provided to the military. These include a preferential mortgage lending program, life insurance, free medical care, and the issuance of housing certificates after retirement.
On the issue of indexing
As mentioned above, in 2016 the government once again decided to do without indexing the salaries of military personnel, since the significant level of the budget deficit led to the need to waive part of the social guarantees. It should also be noted that the government has considered a new bill. Attached to it was a special register regulating expenditure obligations fulfilled from budget funds.
IN this document it was said that in the period from 2017 to 2019, the payment of appropriations in the form of monetary allowances to military servants and employees is provided in the form of an annual amount amounting to 448.7 billion rubles. Thus, we can conclude that indexation or salary increases are not provided for in these years.
The federal budget for 2018 does not include an increase in military salaries This legislative norm is based on a provision that was submitted to parliamentarians when approved. It proposes to extend the suspension of indexation and increases in military salaries until January 1, 2018. We can conclude that social guarantees for this category of people have not been fulfilled over the past five years, and some experts say that during this time, military wages have depreciated by almost 40%.
Exactly the same norm is prescribed for the salaries of civilian personnel who work for the benefit of the Ministry of Defense. The new three-year budget, which was adopted for 2017-2019, states that annual allocations for paying salaries to civilian personnel of the Russian Air Force will be 209.7 billion rubles, which indicates that there are no government plans to index or increase salaries.
What will happen in 2018?
In response to the promise to freeze the salaries of military personnel, representatives of the Committee spoke State Duma on defense issues. They said that the current role of the army in Russia makes this bill simply unacceptable. Let us also recall that new ones will start in Russia very soon, and the authorities traditionally rely on the support of such segments of the population as pensioners, military and civil servants, so spoiling relations with these groups of the electorate is not at all beneficial for them.
In this regard, it can be assumed that the practice of indexing military salaries can be brought back to life. Of course, you shouldn’t count on too high increases.
Perhaps the proximity of elections will be a reason for salary indexation Exact numbers possible increase salaries are still unknown. Some experts say that in 2018, the salaries of the military, as well as other categories of people employed in public service, will be raised by an amount equal to the inflation rate. In this case, the increase rate will be about 5.5%. Unfortunately, this increase will not significantly affect the quality of life, but will help neutralize the negative processes associated with rising food prices, transportation costs, and the like.
Other experts say that the new legislation provides for a completely different principle for salary revision. The issue of indexation will now be resolved only after the government balances the revenue and expenditure items of the budget. If officials see a financial opportunity to increase payments, such measures will be taken. But this may be a completely insignificant amount of 3-4% of the current salary level, which is now called compensation.
IN last years our country lives in difficult conditions and the government is forced to cut more and more items of budget expenditures, which inevitably leads to a decrease in the standard of living of the population, and especially some categories. The army is the pride of Russia, consistently occupying the strongest positions in the world. But the army consists of military men, for each of whom the size of their allowance plays a vital role.
Restrictions on military pay began in 2016, when the indexation of their salaries was abolished. And the last significant increase in allowances was back in 2012. Adding to this the rise in inflation, we get clearly disappointing figures. The current situation naturally causes dissatisfaction among military personnel, and the possibility of an upward change in income starting next year is a big question mark.
So, let's move on to specific numbers.
In 2017, 2,835,792 million rubles were allocated from the federal budget for national defense; in 2018, the amount will drop to 2,728,307 million, and in 2019 it will be 2,816,027 million rubles. At the same time, the share of defense spending in the budget is rapidly falling: since the abolition of indexation of military pay, it has decreased by 6%. In the period from 2016 to the present, taking into account the rise in inflation and consumer prices, the income of law enforcement agencies has decreased by almost 2 times, or more precisely by 43%.
Awaiting the indexation of pay for military personnel
The economic crisis has led to a rapid increase in the budget deficit. As a result, the authorities switched to a regime of austerity, including cutting funding for the military. This year, a moratorium on increasing the military’s pay continues to be in effect, but already in 2018, experts expect the resumption of indexation of the salaries of security forces.
The Russian economy has overcome the acute phase of the crisis and is moving on to the recovery stage. Rising oil prices provide additional budget revenues, which allows officials to improve the budget deficit forecast. In addition, inflation rates are moving closer to target, reducing the cost of potential indexation. However, the position of the Ministry of Finance on this issue remains unclear. The department's main priority is to minimize the budget deficit.
What affects the amount of money allowance
Against the backdrop of uncertainty regarding the increase in pay in 2018, every serviceman must understand from which items it is formed. For those military personnel who have a significant length of service, several factors can be used to receive higher pay:
- salary is determined by both rank and position;
- part location. There are good premiums for a number of regions;
- secrecy. The bonus under this article may exceed half the salary;
- qualifying exams. Their successful completion allows you to increase your salary by a third of your salary.
- risky conditions. The bonus for them can reach the salary;
- bonuses for personal achievements;
- rewards and bonuses for excellent service;
- compensation to pay for accommodation and one-time payments for settling into a new place of residence.
Maneuvers of the Ministry of Finance
The Ministry of Finance proposes to abolish mandatory indexation for the military in 2018. Representatives of the department emphasize that the increase in budget expenditures must correspond to current realities.
The issue of increasing military salaries should be discussed as part of the budget process, the Ministry of Finance insists. This position caused a flurry of criticism from State Duma deputies, primarily representatives of the Defense Committee. The depreciation of military pay poses significant threats to the country's defense capability, deputies emphasize, which is absolutely unacceptable.
As a result, the positive results of the armed forces reform carried out earlier may be lost. In the near future, the government will have to find a balance between the desire to balance the budget and the social protection of the military. At the same time, the authorities will take into account macroeconomic dynamics, which will determine the potential capabilities of the domestic budget.
What to expect in 2018?
A new stage of decline in oil prices next year, included in the pessimistic forecast, will lead to losses for the domestic budget. As a result, officials will be forced to resume austerity, which will jeopardize a possible increase in military salaries in 2018.
However, the State Duma Committee on Defense took the side of the security forces, declaring that, based on the current political situation, as well as the increasing role of the army in the country, a strong limitation on the income of military personnel is not acceptable.
Also, a clear prerequisite for the resumption of indexation of monetary allowances is the upcoming presidential elections in Russia.
In any case, you should not expect high increases. Expert opinions on this issue differ. Some believe that the income of military personnel will increase by the level of inflation, that is, by five and a half percent. Others argue that the exact numbers will depend on the released Money from the budget, the premium will not exceed four percent.
