How Employers Can Assess Pay for Foreign Workers After Trade Union Statement

An employer and an HR specialist reviewing pay terms for foreign workers

The head of the Sverdlovsk trade unions publicly stated that foreign workers should not cost employers less than Russian specialists. The main focus was on official, or “white,” salaries and avoiding savings on labor costs based on an employee’s migration status.

What exactly has changed for businesses

Under the material presented, mandatory pay rules have not changed. The trade unions’ statement is a public position, not a regulatory act introducing a new obligation to raise salaries for all foreign employees or establishing a separate procedure for calculating payments.

No automatic new penalties arise specifically because of this statement either. However, the issue makes familiar employer risks more visible: unofficial payments, unsubstantiated differences in pay, and questions about why employees in identical or comparable positions receive different amounts.

Where the risk of a cost advantage arises

The trade unions draw attention to situations where migration status becomes a way to reduce personnel costs. For an employer, this means it is necessary to look not only at the nominal rate stated in a vacancy, but at the entire actual compensation model: the contractual amount, payroll calculations, additional payments, compensation payments, and the money actually paid.

The comparison should not be mechanical. When assessing the pay of employees in identical or comparable positions, it is important to consider qualifications, the scope of duties, working conditions, and work results. If the difference is explained by these factors, it is useful for the company to have clear documentary support rather than rely solely on verbal explanations from the manager.

How to establish control over pay practices

A good starting point is to compare three sources: the staffing table (штатное расписание — the employer’s document listing positions and штатные единицы), employment contracts, and data on actual payroll calculations in payroll statements (зарплатные ведомости — records of amounts accrued and paid to employees). This review helps identify discrepancies between the stated pay system and actual payments, including cases where part of the compensation is not reflected in the documents and calculations.

Special attention should be paid to foreign workers in high-volume and comparable positions. HR, finance, and legal departments can check whether the rules for setting salaries, additional payments, and compensation payments are the same for different personnel groups, and whether it is clear who makes decisions on changes in pay and on what grounds.

Practical implications for hiring and reputation

A transparent pay model helps an employer plan the full cost of recruiting personnel. If, when recruiting a foreign worker, the budget includes only lower payments, such savings are inconsistent with the position expressed by the trade unions and may create tension among employees performing comparable work.

Equal and clear approaches do not mean identical pay regardless of role and results. Their purpose is to ensure that differences can be explained by qualifications, workload, work schedule, performance indicators, additional payments, or compensation payments. This reduces the likelihood of workplace conflicts, employment disputes, and questions during inspections.

What to check

  • Check that each foreign worker has an employment contract specifying the amount of pay.
  • Compare the staffing table, contract terms, and actual payroll calculations in payroll statements.
  • Eliminate unofficial additional payments and payments not reflected in documents and calculations.
  • Compare the pay of foreign nationals and Russian citizens in identical positions, taking qualifications and workload into account.
  • Document the reasons for differences: qualifications, performance indicators, work schedule, additional payments, and compensation payments.
  • If necessary, update the pay policy and inform the HR and accounting departments.

Sources

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