In Yakutia, wage indexation was postponed due to payments to military personnel
In Yakutia, authorities have postponed the planned pay raise for public sector employees due to additional expenses related to payments to Russian contract soldiers. Teachers, medical professionals, and researchers were supposed to receive a 5.4% pay raise starting July 1, but the adjustment has now been postponed until September 1.
In Yakutia, Russia, officials have decided to postpone salary increases for public sector employees. The reason is additional expenses related to payments to individuals who sign contracts to serve in the Russian Armed Forces. The publication “7×7” drew attention to this decision.
Previously, public sector salaries were scheduled to be indexed by 5.4% effective July 1, 2026. This increase has now been postponed until September 1. The Yakutia government explained the decision by the need to find funds for additional expenses related to one-time payments to Russians who sign contracts for military service.
A response signed by Yakutia’s Prime Minister Kirill Bychkov states that the postponement of the indexation is due to “unforeseen expenses” related to these payments. In effect, the region decided to first allocate a portion of the funds to increased payments for contract soldiers and only then implement the planned salary increase for public sector employees.
Payments to contract soldiers have increased
One of the reasons for the additional strain on the budget was the increase in payments to those who sign contracts with the Russian army. As of May 10, 2026, the regional one-time payment in Yakutia rose from 2.1 million to 3 million rubles. This means that for each new contract soldier, the republic must now allocate a significantly larger sum than before.
This has placed a serious additional burden on the regional budget. Yakutia was already facing a significant funding shortfall, and the increase in payments to military personnel only exacerbates the need for additional funding. According to local media reports, as of April 1, the republic’s budget deficit stood at 9.47 billion rubles.
For the entire year of 2026, authorities had previously forecast a deficit of approximately 12.75 billion rubles. Against this backdrop, the region must determine which expenditures to prioritize.
Public sector employees will have to wait
The postponed pay raise affects public sector employees, including teachers, healthcare workers, and research staff. Their 5.4% pay raise was supposed to take effect on July 1. Now, they are set to receive the additional pay only starting September 1. In effect, public sector employees have lost two months of the planned raise.
That said, this does not mean the indexation has been canceled entirely. The government has so far only postponed the start date. However, the situation illustrates how rising war costs and the recruitment of new military personnel are affecting the finances of Russian regions. The more funds required for one-time payments to contract soldiers, the more difficult it is for local authorities to meet other budgetary obligations without additional resources.
Indexation has been canceled in the Rostov Region
Yakutia is not the only Russian region where problems have arisen with the planned salary increase for public sector employees. In the Rostov Region, authorities had previously canceled the 4% indexation scheduled for October 1.
This was reported by *Kommersant*. However, local authorities did not explain why they decided to abandon the raise. Thus, in two Russian regions, budget expenditures are already directly or indirectly affecting the planned salary increases for public sector employees. In Yakutia, authorities explicitly cited the reason: additional expenses for one-time payments to people who sign contracts with the Russian army.
The war is putting additional pressure on regional budgets
Russian authorities are actively increasing financial incentives to recruit people into military service. Regions are establishing their own one-time payments, which are added to other payments from the federal budget. For wealthy regions, such expenses may be less burdensome, but for territories with large budget deficits, they create additional problems.
In Yakutia, this is already evident in practice. The authorities must simultaneously fund social services, public sector salaries, and other regional programs, while also being forced to find significant sums to cover increased payments to contract soldiers. So far, the pay raise for public sector employees in Yakutia has not been canceled outright. It has been postponed from July 1 to September 1.
At the same time, the situation in the Rostov Region is more severe—the 4% indexation scheduled for October has already been canceled without explanation. These decisions show that the financial burden associated with Russia’s war against Ukraine is affecting more than just the federal budget. Russian regions are also gradually feeling the additional costs and are having to review their own expenditures. This is stated in the republic’s government’s response to an inquiry from regional parliament member Nyurguyana Zamorshchikova.
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