Hello Everyone,
I would like to know if, for a person working as a Vice President in a Pvt. Ltd. company, the company has to pay gratuity or bonus as part of the monthly salary or separately. For example, does the company pay the bonus yearly and gratuity only after the individual leaves the job (provided they complete five years of continuous employment)?
From India, Jalalpur
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I would like to know if, for a person working as a Vice President in a Pvt. Ltd. company, the company has to pay gratuity or bonus as part of the monthly salary or separately. For example, does the company pay the bonus yearly and gratuity only after the individual leaves the job (provided they complete five years of continuous employment)?
From India, Jalalpur
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Hi,
Even the Vice President category, if employed on stipulated terms and conditions of the employer, is eligible for gratuity provided he/she fulfills the eligibility criteria as stipulated by the Gratuity Act. Obviously, gratuity is to be paid after exit only.
With regard to a bonus for such a senior level with a high salary, a bonus will not be applicable. However, a lump sum amount may be paid by the employer in the name of ex-gratia or performance bonus or incentive.
From India, Madras
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1153Even the Vice President category, if employed on stipulated terms and conditions of the employer, is eligible for gratuity provided he/she fulfills the eligibility criteria as stipulated by the Gratuity Act. Obviously, gratuity is to be paid after exit only.
With regard to a bonus for such a senior level with a high salary, a bonus will not be applicable. However, a lump sum amount may be paid by the employer in the name of ex-gratia or performance bonus or incentive.
From India, Madras
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True, regarding bonuses, I would like to put it like this: it is not the level of the employee but the salary of the employee that will decide whether a bonus is payable to an employee or not. Of course, a bonus will not be applicable if the bonus-qualifying salary of the so-called VP is not more than Rs 21,000 per month!
I have seen the salary structure of a very senior-level employee employed in one of the top ten software companies in India. The CTC structure includes a gratuity which is calculated based on his basic salary, which was Rs 13,000 per month. If the gratuity-qualifying salary of that employee is Rs 13,000, as opposed to his fixed remuneration of Rs 137,000, he should also get a bonus. This is because, for both purposes, wages/salary means the total amount that an employee receives as per the contract of employment. If you argue that his "salary" is Rs 137,000 and hence he is not eligible for a bonus, then you should also calculate his gratuity based on that "salary." You cannot have two different treatments, one for the payment of a bonus and another for the payment of gratuity.
From India, Kannur
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I have seen the salary structure of a very senior-level employee employed in one of the top ten software companies in India. The CTC structure includes a gratuity which is calculated based on his basic salary, which was Rs 13,000 per month. If the gratuity-qualifying salary of that employee is Rs 13,000, as opposed to his fixed remuneration of Rs 137,000, he should also get a bonus. This is because, for both purposes, wages/salary means the total amount that an employee receives as per the contract of employment. If you argue that his "salary" is Rs 137,000 and hence he is not eligible for a bonus, then you should also calculate his gratuity based on that "salary." You cannot have two different treatments, one for the payment of a bonus and another for the payment of gratuity.
From India, Kannur
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