Following the principles of social stability and trying to improve living standards of employees, LUKOIL implements popular social programs, including benefits and guarantees to which all employees are entitled, regardless of whether they are members of a trade union or whether a LUKOIL Group company has a trade union. Social guarantees are provided both to LUKOIL Group employees in Russia and abroad, irrespective of whether a staff member is employed full- or part-time. LUKOIL's social policy is based on long-term social programs that are of the greatest value and potential for the employees.
Main social programs:
LUKOIL Group health care system incorporates a range of economic, social, medical, and sanitary measures designed to boost performance of the personnel by promoting physical and mental health of LUKOIL Group employees and retirees. It specifically covers the following lines of activities:
Commitment to a healthy lifestyle is a corporate value. Promotion of health values and personal responsibility for health lays the foundation for corporate and sports activities and events, including sports and athletic contests, district or regional competitions and tournaments, camping trips and guided tours for the employees, their families and veterans. The Company also holds events intended to prevent common diseases.
The Company has built an efficient system of timely detection of occupational diseases. Joining efforts with insurance companies that provide services under voluntary health insurance plans, medical workers offer assistance at medical stations in the Company's offices and at production facilities.
As the laws of the Russian Federation and the countries, where the Company operates, require, LUKOIL has introduced pre-employment and regular medical examinations. Advanced medical equipment, available at on-site medical stations, allow automatic pre-shift check-ups of employees.
Medical workers must call up employees for diagnostic maneuvers, remedial or preventive actions, including seasonal vaccination campaigns against flue and tick-borne encephalitis. Health schools, open at medical stations, offer various trainings, hypertension prevention and treatment among them.
Every year, the Company organizes vaccination campaigns against tick-borne encephalitis and other hazardous diseases, including those that are specific to certain regions where the Company operates.
First Aid Treatment
First aid treatment in LUKOIL Group companies is provided by medical stations, pre-trip medical examination rooms and by paramedic stations and physician offices in compliance with legal requirements, provisions of PJSC LUKOIL Social Code and the Agreement with PJSC LUKOIL International Association of Trade Unions.
COVID Response Teams have been established in LUKOIL Group companies to fight the spread of the pandemic.
Taking regular medical and organizational measures at production sites and in offices, the Company introduced social distancing requirements, a remote working mode, takes temperature of and provides coronavirus tests for employees. The Company's premises undergo regular disinfection. Employees with COVID-19 symptoms are quarantined.
Employees, suffering from coronavirus, are monitored, and, in severe cases, are evacuated for treatment in dedicated medical centers.
Committed to support state systems of social insurance and provide compulsory social protection to all employees, the Company supports and develops excess corporate insurance and social welfare programs.
Voluntary Medical Insurance
Healthcare system is based on the voluntary medical insurance (VMI) that guarantees additional medical services, complementary to standard compulsory insurance, technologically advanced medical examinations and medical assistance of higher quality. Implementing voluntary medical insurance programs, the Company
follows uniform rules of voluntary medical insurance across LUKOIL Group;
continuously monitors the quality of medical assistance in order to protect rights and interests of medical workers.
Employees are free to choose a more flexible insurance scheme to accommodate their needs and extend the coverage of the available voluntary medical insurance at their own expense.
The Company's housing program meets the requirements of the Social Code of PJSC LUKOIL and LUKOIL's Housing Policy Framework. The latter establishes two basic objectives:
To ensure rotation of personnel and provide accommodation to invited personnel, including recent graduates;
To assist employees who require better housing facilities.
Following these principles the Company seeks to ensure decent living conditions for its personnel in places of employment, and
compensates housing rent or rents private, state owned or municipal residential accommodation;
subsidizes interest rates of home loan mortgages;
sells available residential accommodation to employees on special terms.
Non-State Pension Benefits
Since its first day the Company has had its own corporate pension benefits program that envisages financing of additional pensions at the employer's cost.
Russian entities finance a corporate-defined pension plan that covers the majority of employees. One of the plans is calculated on the basis of the number of years an employee has spent with the Company, the salary rate as of the end of 2003, and awards received during the period of employment. Another type of pension plan is calculated in proportion to the salary level. These plans are financed solely by LUKOIL Group entities. Employees have an opportunity to make pension savings with the Company's contribution of up to 4% of an employee's annual salary.
Pension benefits for employees of LUKOIL Group foreign companies are regulated by laws of a country where the company operates and corporate regulations. Some pension plans are financed solely by employers, while others are based on contributions from both employees and employers.
In 2004, the corporate pension system introduced a voluntary pension option based on cost sharing. To join the plan, an employee concludes an individual pension agreement with a private pension fund and makes regular additional payments to contribute to the future allowance. By the time an employee reaches retirement age and retires from LUKOIL Group, the Company accumulates additional pension funds on the employee's personal account in the private pension fund. The amount of additional pension fund equals the amount of funds, invested by the employee while with the Company. Liabilities of LUKOIL Group companies to retirees are established by collective bargain agreements and may include quarterly allowances, social support, medical assistance, allowances paid to coincide with certain celebration days and other forms of social support.