Flexible Benefits Plan

Flexible Benefits Plan shortly Known as FPB is derived as a part of employees’ CTC ie. Cost to Company is one of the extraordinary ways to make employees feel valued and privileged. This is a plan that allows employees to structure and modify their CTC features based on the services like medical expenses and conveyance {Can be in any form }.

As the term, Flexible is derived it makes sense the packages can be shifted or regulated as per Govt Compliances, Company norms, and employees’ positions in the company.

Elements of FBP

Food and Beverages Cost: The company may issue food bills such as meals or any eatery coupons {This includes Meal Vouchers OR Sodexo Coupons}. There is a set of Price ranges that are Tax-free. The amount varies from Rs. 2200-Rs.3000.

Conveyance: Employees commute to work from distances and employers are given these benefits. Conveyance can be made in various manners. They are :

Fuel bills: Employees may also get rewarded with fuel bill systems which include a reimbursement on fuel bills used by employees for office purposes.

Employer’s Vehicle: Some Firms provide personal commuting vehicles to specific positioned employees like senior executives, and managers. The firm provides this vehicle to them for both personal and professional use.

Chauffeur Services: Company also provide chauffeur services to executive positions which gives the employee the benefit of covering driver cost.

Telephone Bills: This bill is covered by the companies through the postpaid mode.

Benefits of FBP

Tax Savings: Easy restructuring helps in tax reduction. For Eg: food bills, mobile phone bills, travel allowance, commuting, etc. Meal Coupons, Health and Fitness, Phone Bills, internet bills, Learning and Development & Car Maintenance etc. This takes Tax Savings and flexible benefits into consideration.

Monthly Expense planning: After getting so much of benefits employees do plan their monthly expenses.

Better Recruitment: Companies that provide so much Flexible Benefits plans have a chance to get more talented people into the firm.

Increases Productivity: By offering this type of flexible plan in salary makes employees happy, and leads to an increase in productivity.

Components of Flexible Benefits Plan

There are two types of components in FBP

1} The monthly Component refers to the benefits reimbursed to the employee through HR on a monthly basis. This includes HRA, Vehicle lease, etc.

2} The Annual Component refers to the benefits reimbursed to the employee on a yearly basis, this is a component which is claimed at year-end. It includes fuel, telephonic, vehicle, etc.

By implementing FBP, companies can provide their employees with lots of value, and talent in the organisation. It helps in motivating employees in other ways too. It is beneficial to both organisations and employees.