Annual report 2013

Material incentives and moral encouragement of the personnel

The Company has developed an all-round motivation system to stimulate efficient performance through material incentives (salary package) and moral encouragement (awards).

Salary package

The basic Company principles of salary package formation are:

  • Unified approach to remunerating all employees;
  • Employee motivation to hit the set targets through enhanced personal, shop and corporate efficiency;
  • Salary competitiveness in the labour market;
  • Promotion of Company reputation as a reliable and responsible employer.

The package comprises workers’ wages (average 92.4% of the total at the Russian-based Group enterprises in 2013) plus social grants (7.6% of the total).

The largest portion of the payroll at the Russian-based Group enterprises – 69.1% – belonged to enterprises in Norilsk and the Taimyr Dolgan-Nenets Municipal District.

Payroll distribution of Russian-based Group enterprises according to operations region, 2011-2013, %

Wage structure of Russian-based Group enterprises, 2013, %


Group enterprise personnel earnings are calculated according to a tariff system, aiming to balance out and differentiate wages depending on qualifications, proficiency and work complexity.

The basic part of earnings consists of the tariff, which includes compensatory and encouraging surcharges, and depends on work time and productivity, irrespective of the performance of the enterprise and the entire Group. The wage structure did not change considerably in 2013. Basic salaries make up approximately 70% of total employee packages.

The variable (bonus) element of wages depends on individual and corporate performance from the point of indices established by the employer (production plan and programme implementation, compliance with technical standards and norms, quality, efficiency, cost reduction, and corporate culture).

The average monthly wage at the Russian-based enterprises was 75,300 roubles – 9.9% more than in 2012 and 180% more than the national average wage (26,800 roubles). The Zapolyarny Branch average monthly wage was 79,900 roubles, 6.8% more than in 2012 and 160% more than the Krasnoyarsk Territory average monthly wage.

Social grants

Social grants comprise benefits and compensations envisaged by the Russian law and collective agreements plus bonuses on corporate, social, pension and other programmes.

They include:

  • Subsidised health resort vouchers for employees and their families, and children’s holiday vouchers;
  • Travel warrants for northern enterprise employees and their families;
  • Pension supplements and other social benefits in compliance with collective agreements and local bylaws;
  • Housing programmes;
  • Installation grants and other benefits not envisaged by the Russian law;
  • Socially oriented programmes .

The Company paid 6.2 billion roubles as The grand total takes into account only expenditures in the Share-Based Pension grants in 2013 (74,900 roubles a year per worker).

The average monthly salary package for 2013 was 82,800 roubles – 9.5% more than the year before.

Average monthly wages at Russian-based Group enterprises, 2011-2013, thousand roubles

Salary package at Russian-based Group enterprises, 2011-2013, thousand roubles

Social grants at overseas Group enterprises

TatiNickel and Nkomati regard social grants as part of the personnel attraction programme. These grants include health and pension insurance, and transport fares. Nkomati also helps employees to purchase houses of their own as the company does not provide family accommodations. Apart from monetary benefits, employees are offered medical and psychological consultations. The Nkomati mine also implements a personnel loyalty programme envisaging employees’ personal development, competitive social grants, and encouragement grants for rare specialists. An audit of this programme is underway at the Company to check its compliance with the corporate standards and specific demands of the mine.

Government social welfare is extremely well developed in EU countries, so Norilsk Nickel Harjavalta needs such programmes less than the Russian and African branches. However, NNH policy envisages medical, social and accident insurance, fitness and healthy living programmes, etc. in addition to mandatory social grants stipulated by the law. In particular, every worker is entitled to health and pension insurance. There are also supplementary grants for health services and occupational disease prevention. Employees can spend holidays in cottages rented by the Company, and the plant canteen caters at reduced prices. The Company also offers grants to workers who acquire new skills or improve their general education.

Moral encouragement

For many years, the Company has bestowed awards on employees for excellent performance and long and impeccable work records.

2011 2012 2013
Total Over 5,000 Close on 5,000 Over 5,000
Of these:
Government awards 26 32 37
Ministry and departmental awards 295 360 416
Regional and municipal awards 692 884 1 128
Corporate awards 179 190 151
Group enterprise awards Over 4,100 Over 3,500 Over 3,300