Russian payroll debt experienced a significant surge of 12.2% in May.
Uncovering the Skyrocketing Employer Debt to Employees in Russia
As revealed by TASS, citing Rosstat, the amount employers owe their employees in Russia reached an astounding 1.6623 billion rubles in May 2025. Here's a breakdown of the top ten sectors contributing to this staggering figure:
- Construction - 46.8%
- Manufacturing - 11.5%
- Water supply, waste treatment, and disposal - 9.3%
- Real estate operations - 7.6%
- Transportation and storage - 6.5%
- Professional, scientific, and technical activities - 5.7%
- Mining - 4.9%
- Agriculture and forestry - 3.8%
- Information and communication activities - 2.1%
- Electricity, gas, and steam supply - 0.6%
Previously, DK.RU reported that, according to Rosstat, overdue wage debt in Russia at the end of February 2025 was 1.21 billion rubles, marking a 629.9 million ruble increase (2.3 times) compared to February 2024. In the last month of spring this year, this number grew by an additional 180.4 million rubles (+12.2% from April 2025). Compared to May 2024, the overall debt of organizations to personnel grew by a whopping 3.4 times (from 495 million rubles).
Averaging out the nominal wage across Russia in 2024, the figure stood at 87,952 rubles per month. The average wage increased by 15.5% in the first quarter of 2025, reaching 91,000 rubles.
Intriguingly, it's been projected that 50% of Russians may be receiving a monthly salary of 100,000 rubles within five years[6].
The escalating employer debt to employees can be attributed to numerous factors, such as economic downturn, financial troubles, labor shortages, sector-specific difficulties, and a credit crisis in the banking industry.
Historically, the construction sector has shown a significant rise in arrears, tripling in certain regions like Tver by early 2025. Overdue wages in this sector exceeded 1.4 billion rubles by March 2025, demonstrating persistent payment delays[7].
The economy's slump, coupled with Western sanctions and geopolitical tensions related to the Ukraine conflict, has resulted in financial burdens for Russian companies. This, in turn, has led some companies to postpone wage bonuses or delay salary payments to employees[7].
Labor shortages stemming from demographic decline and emigration of skilled workers have forced industries to rely increasingly on foreign labor[7][8]. This reliance on imported talent has placed pressure on companies during periods of financial strain, leading to payment delays.
Sector-specific struggles have also contributed to the rise in wage arrears. The Birmingham Post highlighted that companies in the construction sector showed contradictory financial results, with some firms recording profits but others experiencing increased wage debt[9].
In 2024, 47,000 foreign workers were hired, surpassing government quotas by 16%, underscoring the escalating labor market stress impacting wage and employment conditions[8].
The banking sector's deteriorating credit environment, characterized by growing problems with non-performing loans and bad debts, has exacerbated the financial pressure on companies to meet their obligations, including wage payments[1].
The implications of this escalating employers' debt can have repercussions on worker productivity and morale across various sectors, including construction and manufacturing.
In the context of the escalating employer debt to employees in Russia, the finance sector plays an essential role in addressing these issues, as a deteriorating credit environment in the banking industry further exacerbates the financial pressure on companies to meet their wage obligations. The construction sector, being one of the top contributors to overdue wages, is of particular concern, as it struggles with sector-specific difficulties and the reliance on foreign labor, which exacerbates the financial strain during periods of employment delays.
