The salaries of top managers of state-owned companies tied to the average for the organization

The salaries of the heads of government and top managers of state companies will be tied to the average wage of workers of relevant organizations, follows from the bill of the Ministry of labour, approved on Monday the government Commission on legislative activities. Now that the binding is already there for the salaries of the heads of Federal state institutions (such as hospitals or universities) and Federal state unitary enterprises — not more than eight times the average salary of workers, but it has a separate government decree.

Labor bill “On amendments to the Labour code regarding the establishment of a transparent mechanism for the remuneration of managers, their deputies and chief accountants of separate organizations” (has a copy) greatly expands article 145 of the Labour code. It regulates the terms of remuneration of the management of state extra-budgetary funds (Pension Fund, social insurance Fund, the MHIF), government agencies, Federal, MYPOW, state corporations and companies, over 50% of which belong to the state. The new version of article prescribes that in determining the salaries of management will need to consider the average salary of other employees in the organization. Sunday, February 15, the government Commission on legislative activities approved a draft law of the Ministry of labour, told the party meeting and the representatives of the Ministry of labour and the Ministry of economic development. Now it will be considered at the government meeting, after which will be submitted to the Duma.

Limit the difference between the salaries of managers and other employees yet to be established by the normative acts of the government or local authorities (in the case of municipal institutions and unitary enterprises), follows from the document. If the ratio is violated, it can serve as a basis for dismissal of an official. The changes will affect article 278 TK, prescribe additional grounds for termination of the labour contract with the head of the organization. However, heads of state corporations, this threat would not apply, it follows from the text of the bill.

In addition, the bill requires management and chief accountants of state extra-budgetary funds, Federal and MYPOW publish online data on the calculated average monthly salary.

The bill was developed in pursuance of the instructions of President Vladimir Putin on the results of direct line in April 2014, the representative of the Ministry of labor (the President then complained about the low salaries of nurses). “In February—March it is planned to consideration at the government meeting,” he adds.

“The document was received in the Ministry of economic development and our part was agreed without comments”, — said the representative office.

The bill would eliminate “unnecessary differentiation” in pay and will help make the process of salary management of state and municipal institutions and enterprises more transparent, the developers indicate in the explanatory Memorandum.

The limitation of salaries to the heads of state (municipal) institutions, Federal and MYPOW and the ordering of the level of remuneration of top management of state corporations and companies with state participation (over 50%) was among the proposals of the labour Ministry to draft anti-crisis plan of the government (in the initial version of the plan, which was seen in late January).

As disclosed the income of Russian officials

For the first time Russian officials have begun to report on income in 2008, and in 2013, they were obliged to provide a Declaration of costs, if they exceed the income for the previous three years. In may 2015, government officials are forced to report on all major expenditures regardless of comprehensive income.

To provide a Declaration of need and those who want to become a Federal official. In the autumn of last year it has been offered to be extended to candidates for municipal employees.

With the beginning of the third presidential term of Vladimir Putin, authorities began to increase the transparency of revenue management of state-owned companies and state corporations. The presidential decree from July 2013 ordered to disclose management salaries, but in 2014 the Declaration was published just some of the corporations. Ignored him, Rosneft, Russian Railways and Gazprom. Rosneft insisted that the presidential decree applies only to state-owned companies established under Federal law.

In March 2015, the press Secretary of Prime Minister Natalia Timakova has explained that heads of state companies may not publish information about their income. A month later Putin during a direct line with the population “strongly recommended” to the management of corporations to disclose the income. As a result their wages for the first time reported the head of Russian Railways and “Rosneft” Vladimir Yakunin and Igor Sechin.