Question 1

What is a flexible benefit plan?

Accepted Answer

A Flexible Benefit Plan (FBP) is a compensation plan that is included in an employee’s salary, which has various components like food coupons and other allowances.

Question 2

How do flexible benefit plans work?

Accepted Answer

A flexible benefit plan allows an employee to design their salary package in terms of letting them choose the types of allowances and perquisites

Question 3

Why do employers offer employees flexible benefits plans?

Accepted Answer

Employers offer flexible benefit plans to attract the right talent and retain them by increasing job satisfaction and loyalty.

Question 4

What is a Flexible Benefit Plan in Salary?​

Accepted Answer

Flexible Benefit plan (FBP) is that portion of salary that can be received against different expenses, primarily save on income tax.

Question 5

How to Calculate a Flexible Benefit Plan​?

Accepted Answer

Calculating a Flexible Benefit Plan (FBP) involves selecting eligible, tax-efficient components—such as HRA, food coupons, or fuel allowance—from your Cost to Company (CTC) structure, setting amounts based on company limits, and submitting bills for reimbursement.

Question 6

What are the Benefits of FBP for Employees & Employers?

Accepted Answer

A Flexible Benefit Plan (FBP) allows employees to customize their salary structure by selecting tax-efficient perks. For employers, it allows them to attract and retain talent and increase employee satisfaction.

Flexible Benefit Plan

What Is a Flexible Benefit Plan (FBP)? Meaning, Process, and Benefits

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