Creating Attractive Working Conditions

RUB 69.8 billion
– the Company’s salary expenses in 2018

100%
of employees covered by annual performance assessments

Our HR management strategy helps attract and retain best talent, provide decent remuneration, recognise achievements, foster dialogue with management, and develop leadership skills in people. All these initiatives boost Rostelecom’s profile as the employer of choice, supporting its longer-term development goals.

Rostelecom Group’s salary expenses were increased from RUB 67.2 billion in 2017 to RUB 69.8 billion in 2018 (+ 4%), with the average monthly pay raised from RUB 44 thousand to RUB 47 thousand (+ 6%).

PJSC Rostelecom’s salary expenses in 2016–2018, RUB billion

	2016	2017	2018
PJSC Rostelecom	56.85	58.16	62.77
Rostelecom Group (including subsidiaries and affiliates)	66.02	67.2	69.8

Average monthly pay of Rostelecom employees (across all categories) in 2016–2018, RUB thousand

	2016	2017	2018
PJSC Rostelecom	39	44	47
Rostelecom Group (including subsidiaries and affiliates)	40	44	46

Rostelecom has zero tolerance for gender discrimination and discloses salary information across gender, also providing data on its ratio of basic salary and remuneration of women to men for each employee category. The Company is committed to further improving its gender equality practices.

RUB thousand

Macroregion	Average annual payroll
Macroregion	Men	Women	Total
Volga	431,796	404,269	413,619
Far East	652,461	621,924	633,060
North-West	542,601	525,112	531,922
Siberia	481,172	442,237	456,711
Ural	536,253	508,717	518,693
Centre	569,722	558,390	562,455
South	417,625	389,899	398,331
Total	506,790	483,110	491,953

Ratio of basic salary and remuneration of women to men by employee category in 2018

Employee category	Basic salary ratio		Annual remuneration ratio
Employee category	Women	Men	Women	Men
Managers	49%	51%	49%	51%
Specialists	45%	55%	45%	55%
Workers	46%	54%	46%	54%
Other employees	45%	55%	45%	55%
PJSC Rostelecom	47%	53%	47%	53%

Benefits

In 2018, the Company approved the Collective Bargaining Agreement of PJSC Rostelecom for 2019–2021. The document ensures continuity of the existing range of social benefits and compensations, and addresses the individual needs of each employee. The list of benefits offered by Rostelecom is divided into two groups: basic, or standard, benefits and the Cafeteria Plan. The basic benefits are provided to all employees. The Cafeteria Plan includes benefits matching employees’ individual needs. Employees are invited to choose from the list of benefits: financial assistance for holidays, gym memberships, coverage of education expenses, trips to health resorts, etc.

The list of benefits offered by Rostelecom is divided into two groups: basic, or standard, benefits and the Cafeteria Plan.

The Collective Bargaining Agreement covers all, i.e. 100%, of Rostelecom employees. The document includes a list of rights enjoyed by all of the Company’s employees.

Voluntary health insurance is yet another competitive advantage of PJSC Rostelecom as an employer.

Employee housing support is an important social protection tool. Rostelecom successfully implemented its Housing Programme in 2015–2018. In 2018, in addition to the benefits outlined in the Collective Bargaining Agreement, the Company provided RUB 273 million in financial assistance to 1,001 employees (as interest-free loans or reimbursement of interest on mortgage loans taken by employees earlier). This reflects an increase of RUB 33 million from 2017.

A total of 20.1% of Rostelecom total employees (11,080 women and 14,811 men) have the right to retire in the next five or ten years. The Company enhances social protection of employees by offering them an opportunity to join its private pension fund programme. As at 31 December 2018, 41,779 employees were members of our new corporate pension scheme offered by the subsidiary pension fund Alliance – 46.2% of total employees eligible for the scheme (43% in 2017).

Rostelecom’s 2016–2018 Housing Programme in numbers:

3,040 employees received financial assistance from Rostelecom in 2016–2018:

1,051 in 2016
988 in 2017
1,001 in 2018

A total of RUB 853 million has been allocated for the programme since 2016:

RUB 340 million in 2016
RUB 240 million in 2017
RUB 273 million in 2018

Key programme terms:
10 years – the maximum period of financial assistance
– the maximum loan amount or reimbursement of mortgage interest
12% – the maximum mortgage interest reimbursement rate

In 2019, the Company plans to provide assistance to 1,071 employees under the Housing Programme.

Number of employees in 2018 who had the right to retire in the next five or ten years

Region	Employee category	Women	Men
Volga
	Other employees	11
	Workers	117	1,008
	Managers	100	219
	Specialists	1,452	1,037
Total		1,680	2,264
Far East
	Other employees	3
	Workers	81	510
	Managers	98	127
	Specialists	827	462
Total		1,009	1,099
North-West
	Other employees	6
	Workers	132	715
	Managers	85	103
	Specialists	103	810
Total		326	1,628
Siberia
	Other employees	6
	Workers	132	673
	Managers	129	233
	Specialists	1,430	844
Total		1,627	1,750
Ural
	Other employees	61	1
	Workers	71	697
	Managers	85	155
	Specialists	1,227	741
Total		1,444	1,594
Centre
	Other employees	8	1
	Workers	189	1,702
	Managers	242	526
	Specialists	2,986	1,876
Total		3,425	4,105
South
	Other employees	3
	Workers	138	1,174
	Managers	84	164
	Specialists	1,152	891
Total		1,377	2,229
Headquarters
	Other employees
	Workers	5	3
	Managers	65	67
	Specialists	122	72
Total		192	142
Total for Rostelecom		11,080	14,811