The Flexible Benefits Plan (FBP) in India’s pay structure gives workers the ability to change CTC (Cost to Company) elements including transportation and medical costs. House Rent Allowance (HRA), Medical Expenses, Basic income, Dearness Allowance (DA), and other components of income are all included in CTC. Giving people the opportunity to choose is the main goal of the Flexi Benefit Plan. The following elements are included in a Flexi or Flexible Benefits plan, which is introduced to save taxes:
- HRA LTA Health Care Costs
- Bills for Food Conveyance Telephones
Advantages of the Flex Benefit Pay/Plan Tax Saving Method
Increased productivity is a result of employee satisfaction. -
Organizational Transparency Successful Hiring
Flexible Benefit Plan Drawbacks
The following drawbacks of a flexible benefit plan can occasionally affect both the employer and the employees:
Drawbacks for Companies
Implementation Difficulty: Businesses must spend a lot of time and energy educating their staff about the advantages of the strategy, and any communication can make implementation challenging.
Setup Costs: Bringing a new change to the business requires a significant amount of time and work. Moreover, deployment may require a new technology.
Disadvantages
Lack of Portability alternatives: These plans typically don’t provide employees any portability alternatives. Therefore, the plan cannot be transferred if you intend to change jobs.
Risk of Financial Loss: Some flex plans prevent workers from saving money they didn’t use during a fiscal year. Most of the time, this results in financial losses for employees.
