Are Bonuses and Gratuity Applicable to CEOs and MDs? Seeking Legal Insights

Dear All,

I have a query regarding whether bonuses and gratuity apply to Company CEOs and MDs. Can anyone clarify this with legal recommendations?

Thanks in Advance.

Regards, Pavan

Dear Mr. Pavan,

Gratuity is payable to the CEO & MD provided they are in continuous service for 5 years. Similarly, a bonus is payable if Basic+DA is Rs 21,000/- and 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 a bonus or not.