Remuneration, compensation and benefits


The structure of employee pay at LUKOIL Group includes fixed and variable components.

The average salary at LUKOIL Group’s Russian entities is growing, and, in some regions of presence in Russia, it is above the average salary for the respective region.

Average salary of employees at LUKOIL Group’s entities G4-LA13
Russian entities
thousand RUB
Foreign entities,
thousand USD
Note. Calculation methodology: total salaries for employees of all LUKOIL Group entities in a region divided by the average number of employees of the entities and the number of months in the period. The table shows data for the regions where LUKOIL Group’s production facilities are located.
Average salary in LUKOIL Group’s Russian entities compared to average salary in the regions where LUKOIL is present, in 2016, thousand RUB/month G4-EC5
Note. Calculation methodology for the average salary at LUKOIL Group’s entities: total payments to employees of all entities operating in the region divided by the number of employees in the region. The table shows data for the regions where LUKOIL Group’s production facilities are located.

The framework of incentives at Russian entities also includes a wide range of benefits and compensations set forth in the agreement between the employer and the association of trade unions, collective agreements, and other local regulations. All benefits and guarantees are provided in full compliance with the Russian Labor Code. Considerable attention is paid in the structure of benefits and compensations to issues affecting the quality of life of employees, such as maintaining health; assisting families, female employees and children; help with house-buying; and providing social support to former employees after their retirement.

Benefits and compensations (Russian entities) G4-LA2 UN GC

  • Sick leave allowances above the statutory minimum
  • Contributions to voluntary medical insurance (VMI) for employees
  • Coverage of services provided by healthcare facilities
  • Temporary disability allowance covered from the company’s own funds as per the law (first three days)
  • Coverage of VMI expenses for families of employees and also employees who were made redundant as a result of headcount reduction and retirees
  • Contributions under voluntary accident insurance agreements
  • Payments to compensate damage to the health of employees

Health improvement, sports and leisure

  • One-off entitlement for annual holiday
  • Payment for the travel of employees and their families to their holiday destination and back (for those working in the Far North and equivalent areas)
  • Payment for treatment, recreation, excursions and travels for employees and their families
  • Compensations to employees and their families for treatment, leisure, recreation, excursions and travels
  • Payment for vacation packages provided to employees’ children for health improvement and leisure purposes
  • Compensation to employees’ children for health improvement and leisure purposes
  • Tickets to health groups and classes in sports clubs
  • Coverage of travel to holiday destinations

Housing support: assistance to employees in purchasing housing Social support.

  • Refund of the interest rate on a bank’s housing mortgage loan
  • Allowances for housing rental
  • Free subsidies for housing purchases
  • Loans (repayable subsidies) for housing purchases

Social support to women and families with children

  • One-off financial assistance to families with children with special needs
  • One-off newborn child allowance (for men)
  • Coverage of New Year gifts expenses
  • Coverage of kindergarten fees
  • Training of employees and their families (children) not related to the Company’s operations
  • Maternity and childbirth allowance covered by the company
  • Monthly allowances to either of the parents who is on parental leave (until the child is three years old)
  • Newborn child allowance for women

Social policy with respect to young employees

  • One-off financial assistance to employees returning from active military duty
  • Allowance to young professionals


  • Coverage of relocation expenses to employees moving to another place of residence, including those moving from regions of the Far North and equivalent areas
  • Meal allowances
  • One-off family-related allowances (funeral, wedding, etc. expenses)
  • Coverage of expenses to travel to the burial site, medical checkup, etc.
  • Coverage of expenses to travel to and from work (due to the nature of operations)
  • One-off retirement benefit
  • One-off benefit for dismissal on disability grounds
  • Death benefits
  • Social support to non-working retirees

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