Remuneration and incentive system

As part of its social policy, the Company takes 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.

Average monthly salary across all operations | RUB.

In 2021, in accordance with the collective agreement and given the high rate of inflation, the Company indexed employee salaries three times: by 1.3% starting 1 March, 2.4% starting 1 August, and 1.4% starting 1 October.

In 2021, the average monthly salary across all Russian Railways operations amounted to RUB 65,800, up 7.2% compared to 2020. Real salaries increased by 0.5%.

The Company offers wages 15% above the national average and the highest pay level across Russian regionsExcept for the Yamal-Nenets Autonomous Area and the Sakhalin Region, Moscow, and St Petersburg..

The Company’s approach to the financial incentive system is a classic combination of regular remuneration and bonuses. The former is aimed at financially motivating employees to achieve both individual and collective KPIs, while bonuses serve to laser-focus personnel on specific tasks.

The Company keeps incentivising its personnel for implementing cost-efficient projects. In 2021, it allocated RUB 413 m to the remuneration of 14,400 employees.

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 technologies and upgrading those currently in use.

In 2021, productivity in transportation operations increased by 7.9% y-o-y, exceeding the Long-Term Development Programme AAGR of 5%.

The productivity growth rate at Russian Railways is almost 3.3x higher than that across the country and fully aligns with targets set by Russian leadership. After the 2020 pandemic-induced dip in labour productivity, the 2021 gains put the Company back on track in this area.