The remuneration payable by a company at the Board level is governed by section 197 of the Companies Act, 2013 (the Act) read with Rules framed thereunder which do not discriminate between managerial personnel, whether Indian or foreign. As far as below Board level employees of companies are concerned, whether Indian or foreign, their salaries are not regulated under the Act.

This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha.

Remuneration parity: Board-level pay governed by company law while below-board salaries are not regulated under statute. Board-level remuneration is governed by section 197 of the Companies Act, 2013 and its rules, applied without discrimination between Indian and foreign managerial personnel; salaries of employees below Board level, Indian or foreign, are not regulated under the Act.