Dear All, I have query that is bonus and Gratuity applies to Company CEO’s and MD’s. Can any one clarify this with legal recommendation. Thanks in Advance Regards, Pavan
From India, Bengaluru
From India, Bengaluru
Dear Mr Pavan, GRATUITY is payable to CEO & MD Provided they are in continuous service for 5 Years.Similarly, Bonus is Payable, if Basic+DA is Rs21,000/- & below. Please do not get carried away by the Designation.You have to furnish Salary particulars of an Employee to determine whether they are eligible for Bonus or not
From India, New Delhi
610From India, New Delhi
-As per the Companies Act, 2013, Managerial Person means a managing director, whole-time director or manager of a company incorporated in India. Managerial remuneration includes pay, compensation, or reward for work which is earned by a managerial person.
-Private limited and public limited companies are both required to comply with the regulations pertaining to payment of managerial remuneration. Hence, its important for any person becoming a Director of a company to be aware of Managerial Remuneration, as per Companies Act, 2013.
## Managerial Remuneration
Managerial remuneration includes pay, compensation or reward for work provided to a managerial person. The following types of expenditure incurred by a company are also termed as managerial remuneration.
-Expenditure incurred by the company in providing rent free accommodation, or any other benefit or amenity, free of charge, to any of the company’s director and manager.
-Expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the company’s director or manager.
-Expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the company’s director or manager.
-Expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the company’s director and manager or his/her spouse and/or child.
-Expenditure incurred by the company on behalf of its managerial person for indemnifying them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they maybe guilty in relation to the company and if such person is proved to be guilty, the premium paid on such insurance would be treated as part of its remuneration.
-Expenditure incurred by the company for maintenance of vehicles pertaining to personal use by director or manager.
Regards,
Amit
From India, Delhi
-Private limited and public limited companies are both required to comply with the regulations pertaining to payment of managerial remuneration. Hence, its important for any person becoming a Director of a company to be aware of Managerial Remuneration, as per Companies Act, 2013.
## Managerial Remuneration
Managerial remuneration includes pay, compensation or reward for work provided to a managerial person. The following types of expenditure incurred by a company are also termed as managerial remuneration.
-Expenditure incurred by the company in providing rent free accommodation, or any other benefit or amenity, free of charge, to any of the company’s director and manager.
-Expenditure incurred by the company in providing any other benefit or amenity free of charge or at a concessional rate to any of the company’s director or manager.
-Expenditure incurred by the company in respect of any obligation or service, which, but for such expenditure by the company, would have been incurred by any of the company’s director or manager.
-Expenditure incurred by the company to effect any insurance on the life of, or to provide any pension, annuity or gratuity for, any of the company’s director and manager or his/her spouse and/or child.
-Expenditure incurred by the company on behalf of its managerial person for indemnifying them against any liability in respect of any negligence, default, misfeasance, breach of duty or breach of trust for which they maybe guilty in relation to the company and if such person is proved to be guilty, the premium paid on such insurance would be treated as part of its remuneration.
-Expenditure incurred by the company for maintenance of vehicles pertaining to personal use by director or manager.
Regards,
Amit
From India, Delhi
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