Remuneration and incentive system

As part of its social policy, the Company makes an ongoing, focused effort to improve its remuneration and incentive system. This results in increased labour productivity and higher operating performance, while also helping us retain highly qualified personnel.

Amid significant inflationary pressure, the Company seeks to improve the competitiveness of salaries by fulfilling its obligations under Russian Railways’ Collective Bargaining Agreement. In 2022, the Company indexed employee salaries three times: by 4.2% starting 1 March, 5% starting 1 May, and 5% starting 1 August.

The average monthly salary across all Russian Railways’ operations amounted to RUB 75,600, up 15% compared to 2021 (RUB 65,800). Real salaries increased by 1%.

Salary, RUB ‘000

Russian Railways holds its position in terms of salary levels on the labour markets. The Company offers salaries 16% above the national average and the average pay level across Russian regionsExcept for the Yamal-Nenets Autonomous Area and the Sakhalin Region..

The Company’s approach to the financial incentive system is a classic combination of regular and additional bonuses. The former is aimed at financially motivating employees to achieve both individual and collective KPIs, while additional bonuses serve to laser-focus personnel on specific tasks. The Russian Railways applies 33 types of additional bonuses. In 2022, the Company paid the following bonuses to:

  • 101,300 people for ensuring traffic safety;
  • 113,700 people for saving fuel and energy resources;
  • 9,400 people for preventing occupational injuriesIncluding 2,700 people for preventing occupational injuries associated with hitting by rolling stock and 6,700 people for preventing occupational injuries with disability of employees (including fatalities), authorised persons (proxies) of the Russian Trade Union of Railway Workers and Transport Builders, Russian Railways’ primary trade union.;
  • 2,200 people for identifying hard-to-detect defects in freight and passenger trains;
  • 1,700 people for identifying violations committed in the operation of traction stock;
  • 1,600 people for reducing unproductive losses of working time of locomotive crews;
  • 7,300 people for the implementation of JIT production projects;
  • 6,300 people for mentoring;
  • 3,100 people for promoting invention and efficiency proposals;
  • and other.

The corporate remuneration system, including its hourly rates (for blue-collar jobs) and monthly salaries (for management and white-collar jobs), compensation and incentive payments, applies to all Russian Railways employees regardless of their gender.

Labour productivity

Increasing labour productivity is a major priority for Russian Railways, which it advances though its Labour Productivity Improvement Programme that includes deploying cutting-edge equipment and devices, improvement and modification of processes, organisational measures, multi-skilling, and expanded roles.

In 2022, productivity in transportation operations increased by 2.8% y-o-y.