Management approach

DMA

The corporate remuneration system aims to provide competitive salaries and is based on the equal payment for equal work concept. DMA

In Russian entities, the agreement between PJSC LUKOIL and the association of trade unions sets the minimum pay rate at the level of the minimum living wage of the economically active population or higher. The base salary depends on the employee’s set duties, challenges inherent in their work, and level of responsibility. It is set individually for each employee and takes into account the level of training and practical experience. Salaries are indexed on an annual basis.

In the reporting period, work was continued to implement ICS “Personnel”, a corporate integrated system aimed at making business processes more transparent to the employees. In 2016, as part of the project titled “Development of Template Solution of ICS “Personnel” System”, the following sub-projects were completed: “Employee’s Personal Office” and “Payroll and Social Benefits Planning”. The software is expected to be rolled out across LUKOIL Group’s entities in 2017 and 2018. Work is underway to replicate this project in the Russian entities of the LUKOIL Group and work has begun on the dissemination of the Template Solution of ICS “Personnel” in the foreign assets of the business segment “Oil and gas production abroad”, which is scheduled to continue in 2017.

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