Labor Market and Salary Survey in Russia

OVERVIEW OF LABOR MARKET IN RUSSIA

September, 2013

Agenda

Labor Market in Million Cities

Salary Levels in Moscow

Recruitment Time

LABOR MARKET IN MILLION CITIES

12 Million Cities in Russia

Million Cities in Russia

11.51

4.85

1.47 1.35 1.25 1.16 1.15 1.14 1.13 1.09 1.06 1.02

Population in millions (census 2010)

Labor Force in Russia

6.8

2.9

4.0

1.0 1.4

2.3 1.8 1.7

1.0

2.1 1.9 2.2 2.0 1.3

Labor force, millions of people

Unemployment in Russia

5.5

0.8 1.1

2.9 3.2

5.6 5.8 5.4

3.4

6.9

4.1

6.4 6.0 6.1 6.0

Unemployment rate (%) in 2012

Salary Index in Russia (Russia average 100)

100%

197%

125%

121%

100%

85%

94%

78%

78%

82%

86%

84%

72%

75%

70%

Russia

Moscow

Saint Petersburg

Moscow oblast

Leningrad oblast

Novosibirsk oblast

Sverdlovsk oblast

Nizhny Novgorod oblast

Samara oblast

Omsk oblast

Republic of Tatarstan

Chelyabinsk oblast

Rostov oblast

Republic of Bashkortostan

Volgograd oblast

Increase of Wage to Previous Year vs. Inflation 2000 - 2012

20,9 19,9

16,2

10,9 10,6

12,6 13,3

17,2

11,5

-3,5

5,2 2,8

8,4

21,0 21,6

15,8

13,7 10,9

12,7

9,7 9,0

14,1

11,7

6,9 8,5

5,1

Increase of Average Monthly Wage to Previous Year (%) Inflation (%)

Employer’s Insurance Contributions

• The insurance contributions are paid in full at a rate of 30% for an annual income (from the same employer) of up to RUR 512,000 (EUR 11540), after which limit the income is subject to a rate of 10% without any further limitations.

• Under the general rule the 30% insurance contributions are divided

as follows:

• 22% is contributed to the Pension Fund (10% tail exceeding the limit goes here as well);

• 2.9% is contributed to the Social Insurance Fund; • 5.1% is contributed to the Compulsory Medical Insurance

Federal Fund.

Calculation of Insurance Contributions

Salary (monthly, EUR)

Salary (annual, EUR)

Insurance contribution rate (%)

Insurance contributions (annual, EUR)

1200 EUR 14400 EUR 30% on 11540 EUR + 10% on 2860 EUR over the limit 3748 EUR



Insurance Contributions

• In addition, the rates for mandatory work-related accident and health insurance range from 0.2% to 8.5% of the total salary.

• Foreign nationals that have received a work permit under the privileged status of a so-called highly qualified specialist are exempt from insurance contributions (except mandatory work-related accident and health insurance).

Employer’s Expenses

For an office employee in Moscow to receive 5000 EUR net salary, the employer must pay the following:

• 5000 / 0.87 (13% income tax) = 5747 EUR gross monthly salary.

Annual gross salary 5747 EUR x 12 = 68964 EUR • Annual Insurance contributions (30% on 11540 EUR + 10% on

57424 EUR over the limit) = 9204 EUR . • Mandatory work-related accident and health insurance (0.2% on

annual gross salary 68964 EUR) = 138 EUR Total sum: 78306 EUR / year Monthly: 6526 EUR

BASIC SALARY LEVELS IN MOSCOW (large

international & Russian companies)

General Management

GENERAL MANAGEMENT

Position

Gross Monthly Basic Salary

Lower Range Average Higher Range Average

Head of Representative Office 3500 EUR 11500 EUR

General Director 4500 EUR 13500 EUR

CEO 5500 EUR 13500 EUR

Production, Technology & Engineering

PRODUCTION, TECHNOLOGY AND ENGINEERING

Position



Process Engineer 1000 EUR 2500 EUR

Product Developer 1500 EUR 3000 EUR

Head of Laboratory 1000 EUR 3500 EUR

Chief Technologist 1500 EUR 3500 EUR

Quality Manager 2000 EUR 3500 EUR

Operations Manager 3500 EUR 4500 EUR

Chief Mechnical Engineer 2500 EUR 4500 EUR

Head of R&D Department 2500 EUR 4500 EUR

Chief Engineer 2000 EUR 5000 EUR

Production Manager 2000 EUR 5000 EUR

Quality Director 3500 EUR 5500 EUR

Plant Manager 4000 EUR 6000 EUR

Technical Director 2500 EUR 7000 EUR

Managing Director 5500 EUR 9000 EUR

Sales B2B

SALES (B2B)

Position



Sales Manager 2500EUR 3500 EUR

Regional Sales Manager 2500 EUR 4000 EUR

Key Account Manager 2500 EUR 4000 EUR

Business Development Manager 3500 EUR 4500 EUR

National Sales Manager 3500 EUR 5500 EUR

Regional Sales Director 4000 EUR 5500 EUR

Sales Director 4500 EUR 8000 EUR

Commercial Director 5500 EUR 9000 EUR

Marketing

MARKETING

Position



Junior Brand Manager 2000 EUR 2500 EUR

Event Manager 1500 EUR 2500 EUR

Brand Manager 2500 EUR 3500 EUR

PR Manager 2500 EUR 3500 EUR

Trade Marketing Manager 3500 EUR 4000 EUR

Senior Brand Manager 3500 EUR 4500 EUR

Marketing Research Manager 3500 EUR 4500 EUR

Group Brand Manager 4000 EUR 5500 EUR

PR Director 4500 EUR 5500 EUR

Event Director 3500 EUR 5500 EUR

Marketing Manager 5500 EUR 7000 EUR

Head of Trade Marketing 4500 EUR 7000 EUR

Head of Marketing Research 5500 EUR 8000 EUR

Marketing Director 8000 EUR 12500 EUR

Digital / Online Marketing

DIGITAL / ONLINE MARKETING

Position



Internet Project Manager 2000 EUR 3500 EUR

Online Communication Manager 2500 EUR 3500 EUR

Social Media Manager 2500 EUR 3500 EUR

Head of Internet Projects 3500 EUR 4500 EUR

Online Marketing Manager 3500 EUR 4500 EUR

Digital Marketing Manager 3500 EUR 5500 EUR

E-Commerce Director 5500 EUR 8000 EUR

Finance

FINANCE

Position



Credit Controller 1500 EUR 2500 EUR

Cost Controller 1500 EUR 2500 EUR

IFRS / GAAP Specialist / Accountant 2000 EUR 3000 EUR

Management Accountant 2000 EUR 3000 EUR

Finance Analyst 2000 EUR 3500 EUR

Business Controller 3500 EUR 4500 EUR

Finance Controller 2500 EUR 5500 EUR

Finance Manager 2500 EUR 5500 EUR

Head of Budgeting / Budgeting Manager 3500 EUR 5500 EUR

Head of IFRS / GAAP Reporting 3500 EUR 5500 EUR

Depyty Finance Director 4500 EUR 7000 EUR

CFO / Finance Director 5500 EUR 9000 EUR

Accountancy

ACCOUNTANCY

Position



Accountant 1000 EUR 2000 EUR

Senior Accountant 1500 EUR 2000 EUR

Payroll Accountant 1500 EUR 2000 EUR

Deputy Chief Accountant 2500 EUR 4000 EUR

Chief Accountant 2500 EUR 5000 EUR

Chief Accountant / Financial Manager 2500 EUR 5500 EUR

Tax / Audit / Control

TAX / AUDIT / CONTROL

Position



Tax Specialist 1500 EUR 3500 EUR

Internal Auditor / Controller 2000 EUR 4500 EUR

Tax Manager 3000 EUR 7000 EUR

Head of Internal Audit 3500 EUR 7500 EUR

Human Resources

HUMAN RESOURCES

Position



HR Specialist 2000 EUR 2500 EUR

Compensation & Benefits Specialist 2000 EUR 2500 EUR

HR Administration Manager 1500 EUR 2500 EUR

Recruitment Manager 2000 EUR 3500 EUR

Internal Communications Manager 2500 EUR 3500 EUR

Head of HR Administration 2500 EUR 4000 EUR

HR Business Partner 3000 EUR 5000 EUR

Employer Branding Manager 2500 EUR 5000 EUR

Head of Recruitment 3500 EUR 5000 EUR

HR Manager 2500 EUR 5500 EUR

Compensation & Benefits Manager 3500 EUR 5500 EUR

Head of Internal Communications 3500 EUR 5500 EUR

Head of Compensation & Benefits 3000 EUR 7000 EUR

HR Director 4500 EUR 13500 EUR

IT IT

Position



Service Engineer 1000 EUR 2000 EUR

Technical Support Specialist 1000 EUR 2500 EUR

Information Security Specialist 2000 EUR 3000 EUR System Administrator 1500 EUR 3000 EUR

Telecommunications Project Manager 1500 EUR 3500 EUR

Business Analyst 1500 EUR 3500 EUR Pre-Sale Engineer 2000 EUR 3500 EUR

Network Engineer 1500 EUR 3500 EUR

Programmer 1500 EUR 4000 EUR

Developer / Analyst 2000 EUR 4500 EUR Consultant (ERP / CRM) 2000 EUR 4500 EUR

IT Architect 2000 EUR 5500 EUR

IT Manager 2000 EUR 7000 EUR

Project Manager 2000 EUR 7000 EUR

IT Director / CIO 2500 EUR 9000 EUR

Supply Chain Management SUPPLY CHAIN MANAGEMENT IN HOUSE

Position



Logistics Specialist 1500 EUR 2000 EUR

Planning Specialist 1500EUR 2500 EUR

Logistics Manager 2000 EUR 2500 EUR

Purchasing Specialist 2000 EUR 2500 EUR

Warehouse Manager 2000 EUR 3500 EUR

Planning Manager (head) 2500 EUR 4500 EUR

Purchasing Manager (head) 2500 EUR 4500 EUR

Logistics Director 3500 EUR 7000 EUR

Purchasing Director 3500 EUR 7000 EUR

Construction and Real Estate CONSTRUCTION AND REAL ESTATE

Position



Senior Architect 2000 EUR 2500 EUR Leasing Manager 1500 EUR 2500 EUR

Electrical Engineer 500 EUR 2500 EUR Mechanical Engineer 500 EUR 2500 EUR

Tenant Coordinator 1000 EUR 2500 EUR Chief Engineer 3000 EUR 4000 EUR Facilities Manager 1500 EUR 4000 EUR

Head of Leasing 2500 EUR 4500 EUR

Expansion Manager 1500 EUR 4500 EUR

Head of Construction 2500 EUR 5500 EUR

Technical Director 3000 EUR 5500 EUR

Project Manager 2000 EUR 7000 EUR Centre Manager 4000 EUR 7000 EUR Development Director 4000 EUR 9000 EUR

Real Estate Director 4500 EUR 10000 EUR

B2B Sector

B2B SECTOR

Position



Service Engineer 1500 EUR 2500 EUR

Service Manager 3500 EUR 5500 EUR

RECRUITMENT TIME

Recruitment Process of Awara

• Analyzing the project carefully to understand the needs • Preparing Ideal Candidate Profile • Screening the labor market (market research) • Contacting & Matching qualifications of possible candidates (direct

search) • Interviewing & Assessing potential candidates • Preparing analyses of the strengths and weaknesses of potential

candidates and providing the information to client • Assisting in assessing the candidates’ professional skills • Assisting in candidate testing, competencies and personality • Conducting reference and background checks of final candidates • Assisting in negotiating compensation packages and other issues

Recruitment Time at Awara

• Blue collar workers: 2 – 4 weeks

• Middle management and specialists: 2 – 5 weeks

• Top management and board members: 3 – 6 weeks

The above mentioned time periods are general recruitment times for different level of positions. Actual time of delivery depends on individual requirements and client’s commitment to providing necessary feedback and information.

Contacts

Awara Direct Search, part of Awara Group Global call center: +7 495 225 3038 E-mail: [email protected] www.awara-search.com www.awaragroup.com

mailto:[email protected]



http://www.awara-search.com/







http://www.awaragroup.com/



