Remuneration and Social Support for Personnel

The integrated remuneration system in effect at Gazprom Neft is closely tied to the Company’s strategic goals and business objectives. The value proposition that Gazprom Neft offers its employees includes a range of material, professional and social benefits.

The remuneration level at the Company corresponds to the average labour market level in the industry. Employee salaries are reviewed each year taking into account their individual performance. An employee’s performance results are assessed based on the goal management system adopted by the Company. A system has been introduced for the annual assessment of employee performance based on professional, ethical and management criteria. The assessment results are taken into account during career planning and inclusion in the talent pool and affect the review of salaries and the amounts of annual bonuses.

The average monthly salary of Company employees in 2014 totalled 84,775 RUB, which is 26% higher than in 2013 and 160% higher than the average salary level in the Russian Federation1.

One important aspect of work with personnel at Gazprom Neft is improvements to the system of non-financial motivation for employees. Gazprom Neft programmes for employees include professional skills competitions, sport competitions, leisure and recreational activities, corporate communications sessions, public recognition of employees and the awarding of corporate marks of distinction.

The Company’s enterprises have collective bargaining agreements and other provisions and standards that provide a variety of social benefits and payments to employees in addition to those prescribed by legislation. The social package of most Gazprom Neft enterprises includes voluntary medical insurance, accident insurance, meal allowances, financial aid, voucher payments and other benefits. As part of the corporate voluntary medical insurance agreement, Company employees receive medical consultations from doctors and treatment at the country’s leading clinics, if necessary. The Company also organizes routine medical examinations and check-ups.

In several regions where the Company operates, a corporate mortgage programme is available to provide employees aid for the purchase of housing. The programme provides compensation from the enterprise to employees for a portion of the interest paid for bank loans and provides loans for initial down payments on homes.

36,500 RUB
expenses on social payments per employee in 2014

84,775 RUB ↑26%
average monthly salary of Company employee in 2014

Dynamics of average monthly salaries at the Company, RUB
Personnel expenses, mn RUB
2010 2011 2012 2013 2014
Wage fund for employees on payroll 39,025 42,403 39,364 45,040 58,510
Social payments 1,855 2,875 2,896 3,186 2,097
Total 40,880 45,278 42,260 48,226 60,607

When developing and implementing its social programmes, the Company actively cooperates with unions. Professional organisations that unite more than two-thirds of the Company’s employees are involved in the resolution of issues that concern the professional, social and labour rights and interests of employees.

Expenses on social package and benefits in 2010-2014, 1,000 RUB
2010 2011 2012 2013 2014
Free and subsidised meals 573,546 509,864 493,052 522,774 526,528
Voluntary medical insurance 535,239 438,862 529,623 650,709 719,561
Voucher payments 128,924 101,722 109,761 115,705 160,906
Payments on support programmes for retired employees 91,018 113,610 143,907 119,900 137,885
Housing programme 103,179 118,413 124,132 121,329 180,878
Sporting and cultural events 248,498 314,003 290,222 317,599 121,962
Total 1,680,404 1,596,474 1,690,697 1,848,016 1,847,720