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 2023, the Company indexed employee salaries three times: by 2.63% on 1 March, 3% on 1 October, and 2.12% on 1 November.
The average monthly salary across all Russian Railways’ operations amounted to RUB 85,300, up 12.8% compared to 2022 (RUB 75,600). Real salaries increased by 6.5%.
Russian Railways holds its position in terms of salary levels on the labour markets. In 2023, the Company offered salaries 14% above the national average and the pay level across Russian regions Except for the
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.
In the reporting year, the current incentive system was instrumental in achieving key quantitative and qualitative indicators, while additional bonuses served to laser‑focus personnel on specific tasks. In 2023, the Company paid the following bonuses to:
- 87,200 people for ensuring traffic safety;
- 117,600 people for saving fuel and energy resources;
- 2,500 people for preventing occupational injuries associated with hitting by rolling stock;
- 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;
- 1,900 people for identifying hard‑to‑detect defects in freight and passenger trains;
- 1,800 people for identifying violations committed in driving trains and shunting operations;
- 2,500 people for reducing unproductive losses of working time of locomotive crews;
- 14,000 people for the successful implementation of lean production projects;
- 7,700 people for mentoring;
- 3,300 people for promoting invention and rationalisation.
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 2023, productivity in transportation operations increased by 2.1% y‑o‑y.