Yemen's Army Faces Salary Shortfall on $23 Million Monthly Budget

*TL;DR: Soldiers in Yemen’s internationally recognised army have not received pay since December, even though the defense budget totals roughly $23 million a month.

Context Yemen’s armed forces rely on a monthly allocation of about 36 billion riyals (≈$23.2 million) to cover salaries, equipment and operations. The country’s war economy has been battered by falling oil revenues and sanctions, leaving the Ministry of Defence scrambling for liquidity. In regional markets, defense stocks such as $LMT (Lockheed Martin) and $NOC (Northrop Grumman) have risen 4‑5 % this week on broader defense‑spending optimism, underscoring the contrast with Yemen’s cash crunch.

Key Facts - Rank‑and‑file soldiers earn between 60,000 and 180,000 riyals per month, roughly $38‑$116. An officer confirmed the last payment was made in December, despite a government pledge to clear arrears by the Eid al‑Adha holiday in late May. - The army’s payroll consumes about half of the monthly budget; the Fourth Military Region in Aden alone receives 17 billion riyals (≈$11 million). - Non‑regular formations—Security Belts, Elite Forces, Giants Brigades and National Resistance—receive up to $320 per month for 120,000‑150,000 fighters, creating a pay disparity that could lure personnel away from the regular army. - Yemen’s riyal has depreciated sharply, eroding the real value of wages and squeezing soldiers’ purchasing power in markets such as Marib and Aden.

What It Means The salary gap threatens the regular army’s cohesion. Analysts warn that delayed wages may push soldiers toward better‑paid irregular units, depleting experienced troops from front‑line duties. Reduced spending power also dampens local commerce, as soldiers constitute a key consumer base in war‑torn cities.

From a macro perspective, Yemen’s defense outlay represents less than 0.1 % of global defense spending, yet the internal fiscal strain mirrors broader challenges faced by conflict economies: revenue loss, currency collapse and competing priorities for limited funds. If the government cannot resolve arrears, recruitment and retention could deteriorate, potentially altering the balance of power with Houthi forces.

Looking ahead, monitor the Ministry of Defence’s next budget statement and any emergency financing measures, as well as regional security‑spending trends that may influence external support for Yemen’s armed forces.