Russian railways

Employee Social Package1. Employee Social Package (ESP) – (benefits and guarantees awarded to employees and their families) paid for by Russian Railways

The ESP includes the following benefits and guarantees:

  • free annual travel for employees and dependent children under the age of 18 on public railways;
  • long-distance train travel for personal needs;
  • return travel from the place of residence to the place of work and study;
  • return travel from the place of residence to the place of treatment;
  • from the place of residence to the place of purchase of goods for family needs for those living at stations, crossing and stops where no retail network exists;
  • additional free return rail travel to and from the holiday location (or compensation for any mode of transport, with the exception of taxis, but no more than the cost of rail travel) once every two years for railways workers and dependent children under 18 who live in Russia’s Far North;
  • voluntary health insurance for employees and medical care at the non-governmental healthcare institutions of the Russian Railways;
  • providing workers in need of household fuel;
  • material assistance when going on annual paid leave;
  • a one-time reward for conscientious work at retirement, depending on the length of service at the Company;
  • financial support for motherhood and childhood:
    • material assistance of 4,600 roubles in excess of the allowance established by law at the birth or adoption of a child;
    • supplementary payment to the maternity allowance to bring the total payout up to the average monthly earnings;
    • monthly allowance of 4,600 roubles when a parent is on leave while looking after a child between 1.5 and 3 years of age;
    • insurance against accidents for workers’ children during their stays at children’s health camps and while travelling to and from the camp.
  • benefits and guarantees when an employee is released.
  • employee insurance which provides insurance payment to the families of deceased workers.

2. Employee Social Package with partial participation – on the principles of the financial contribution of the employer and employee

This includes the following benefits and guarantees:

  • non-state pension provision (the Company’s share in the employee's pension contributions amounts to 50%);
  • treatment and recovery of employees and their families at a spa (the Company’s share in the cost of the travel and accommodation warrant ranges from 50 to 80%, depending on the season and location of the facility);
  • rest and recovery of children (the Company’s share in the cost of the travel and accommodation warrant ranges from 75% to 95%, depending on the location of the object and the status of the family);
  • providing places at the Company’s kindergartens;
  • corporate support for home buyers (the Company subsidises workers in need of improved housing conditions, paying most of the cost of accrued interest on mortgages, for which the employee pays only 4.5% and young professionals 2% per annum);
  • financial compensation for the cost of physical education up to 20,000 roubles.

3. Compensatory social package (the Company provides an opportunity to compensate the employee’s costs for social services included in the approved list of elements within a certain limit)

The Compensatory Social Package (CSP) is an element of the social package which is provided in order to increase the attractiveness of jobs and incentivise workers at work.

The Compensatory Social Package is based on the “cafeteria” principle, which provides for the establishment of a limit of funds and a list of elements by the employer on which these funds can be spent.

The CSP provides an employee with the opportunity to compensate within a certain limit their social services costs included in the approved list of elements.

  • Eligibility for the CSP
  • In accordance with the regulations of OJSC Russian Railways, the CSP is provided to employees who are in the personnel category, so-called significant categories.
  • Every year, working groups at the branches of Russian Railways identify the recipients of the CSP, based on the tasks facing the branches, from the personnel situation in the region and at the branch etc., and issue orders to provide employees with the CSP in that year.
  • The CSP is provided to the employee on the basis of his/her personal application. During the application period (the main one takes place between 20 September and 20 October during the year prior to the granting of the CSP), the CSP recipient is issued with a Notice and Application Form for the award of the CSP. The employee must complete the Application Form (choosing the CSP elements that s/he would like to use) and submit it over to the specialist dealing with the Social Package within 5 days.
  • The employee has the right to direct the remainder of his CSP limit, formed on 10 December, the year of granting the CSP, to a mobile phone or to contributions to the Welfare National Pension Fund. To do this, s/he needs to make an appropriate note in the statement. Any employee’s cash balance remaining under the CSP is not carried over to the following year.