Flexible Benefit Plan (FBP) for employees

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Hi,

What is Flexible Benefit Plan (FBP) in salary? What are the options can be provided under FBP?

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FBP or Flexible Benefit Plan is a way of structuring the salary of an employee. With this, employees are given the option to decide which components they want to take and how much they want to take under each component with some predefined checks and balances.

There are two types of flexible benefits plan components in India.

The monthly component which is paid by the HR department on a monthly basis. These components include HRA, vehicle lease, etc.
The annual component is paid to the employee on a yearly basis, only when the employee claims it. For instance, fuel, telephone, book reimbursements etc.

FBP Advantages are-
Employee Satisfaction
Tax Saving
Company Transparency
Effective Recruitment and Retention

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