Moscow Incentivizes Soldiers with Competitive Pay Packages

Residents of Moscow volunteering to fight in Ukraine receive a down payment of 1.9 million roubles ($21,777), elevating their annual pay to 5.2 million roubles ($59,600). This pay increase surpasses Russia's average nominal wage by over five times. Economists warn of financial imbalances resulting from such high military wages.

Residents of Moscow enlisting to fight in Ukraine will be awarded a down payment of 1.9 million roubles ($21,777) from the city, inflating their annual salary in the first year of service to 5.2 million roubles ($59,600), according to the mayor's office on Tuesday. This total compensation will include the upfront payment, defense ministry wages, and various regional and federal allowances, said the office of Moscow Mayor Sergei Sobyanin.

The newly established payments will be enforced immediately, the statement added. This adjustment means that the annual pay for Moscow-based Russian contract soldiers will exceed the average nominal wage in Russia over five times, based on data from the first quarter of 2024.

Generous volunteer payments have aided Russia in avoiding another nationwide mobilization after a problematic campaign in 2022 led to a mass departure to adjacent countries. Economists, however, express concerns that such payments may cause economic imbalances. They argue that the elevated wages for soldiers in Ukraine serve as a benchmark across various sectors, propelling a wage growth spiral as employees demand raises comparable to army pay. Russian officials report that around 190,000 people volunteered this year to fight in Ukraine. This figure sits in contrast to the 490,000 contracts signed in 2023.

Moscow, housing a substantial segment of Russia's educated workforce, is perceived as trailing behind other regions in volunteer numbers relative to its population. No official data is available on Moscow's volunteers, but city officials estimate the current figure to be 45,000 as of June 13.