Social policy

Services within the framework of social programs for employees are provided both in the Russian and foreign organizations of LUKOIL Group.

As part of providing social stability and improving the living standards of employees, LUKOIL implements popular social programs, including benefits and guarantees to which all employees are entitled, regardless of whether they are a member of a trade union or whether respective trade union requirements apply. Benefits are provided irrespective of whether a staff member is employed full- or part-time. The Company’s obligations that are additional to the legislation of the Russian Federation and international standards are enshrined in the Social Code of PJSC LUKOIL.

Personnel expenses in LUKOIL Group entities, RUB million
2016 2017 2018
Total: including: 153,415 142,145 145,702
wages 137,664 132,022 136,475
social benefits and payments, social support of employees 14,698 9,294 8,403
training 1,053 825 828

Notes. 1) The indicator "wages" was prepared in accordance with the instructions for completing the forms of federal statistics, approved by order of Rosstat of 12.11.2008 No. 278. Labor remuneration includes amounts of labor remuneration in monetary and non-monetary form for time worked and not worked, compensation payments related to work and working conditions, additional payments and increments, bonuses, one-time incentive payments, and payments for food and accommodation that are systematic in nature, in accordance with the methodology of completing the indicator of the fund of accrued wages (taking into account the personal income tax and other withholdings) of workers in form No. P-4, Information on the Number and Salaries of Employees. 2) The reduction in social benefit expenses and payments related to a reduction in limits for certain benefits (e.g. accommodation rental compensation) for employees assigned to foreign oil and gas producers, as well as to the ongoing restructuring of LUKOIL Group foreign entities and Russian oil product supply entities.

Scope of services provided to LUKOIL Group Russian entities under employee social programs
2016 2017 2018
1. Health protection, services 261,509 276,063 229,781
2. Social support for families with children, services 61,398 61,461 58,664
3. Non-state pension support, people 6,262 5,795 6,363
4. Support for pensioners, people 43,429 43,116 44,884
5. Other, services 18,036 16,274 17,585

Notes. Services provided to an employee under a social program are understood to mean providing a service at the employee's request or the payment of monetary funds to an employee to obtain a service or to compensate for a service provided.