One of the unique ways to provide employees a sense of value and privilege is through the Flexible Benefits Plan, or FPB for short, which is derived as a portion of employees’ CTC, or cost to the company. This plan gives workers the ability to organize and change their CTC characteristics according to services like transportation and medical costs {Can be in any form }.
As implied by the term “flexible,” it makes sense that the packages can be changed or governed in accordance with government regulations, corporate policies, and the roles that employees hold within the organization.
Aspects of FBP
Food and Beverage Cost: The business may provide food bills, meal coupons, or any other type of restaurant coupon, such Sodexo or meal vouchers. A certain range of prices is exempt from taxes. The range of the money is between Rs. 2200 and Rs. 3000.
Conveyance:
Employers receive these benefits as employees travel long distances for work. There are several ways to convey information. They are:
Fuel bills:
Fuel bill systems, which compensate employees for fuel bills used for office reasons, are another way to reward staff members.
Employer’s Vehicle:
Certain companies give managers and senior executives, among other positioned staff, their own cars for commuting. They are given this automobile by the company for both personal and business purposes.
Chauffeur Services:
The company also offers executive positions chauffeur services, which allows the employee to pay for the driver.
Telephone Bills:
The firms use the postpaid way to cover this charge.
Benefits of FBP
Tax Savings:
Tax reduction is facilitated by simple restructuring. For instance: expenses for meals, cell phone bills, trip reimbursement, commuting, etc. Meal coupons, fitness and health, phone and internet costs, education and training, and auto repair, among other things. This accounts for flexible perks and tax savings.
Planning monthly spending:
Employees plan their monthly expenses after receiving a plethora of advantages.
Improved Recruiting:
Businesses that offer a lot of flexible benefits plans stand a chance of attracting more skilled individuals to work for them.
Boosts Productivity:
Providing employees with this kind of flexible pay plan makes them pleased, which in turn boosts productivity.
Flexible Benefits Plan Components
FBP consists of two different kinds of components.
- The benefits that are paid back to the employee by HR each month are referred to as the monthly component. This covers things like vehicle leases and HRA.
- The Annual Component is a component that is claimed at year-end and relates to the benefits that are paid back to the employee annually. It covers things like petrol, phones, cars, etc.
Businesses may provide their employees a wealth of value and talent within the company by utilizing FBP. It also aids in employee motivation in various ways. Employees and organizations both benefit from it.
