Flexible Benefit Plan (FBP)

A Flexible Benefit Plan lets employees choose how part of their salary is structured to save tax, giving them more control over their take-home pay. Common components under a Flexible Benefit Plan include HRA, food coupons, and phone or fuel reimbursements. Employees usually select their Flexible Benefit Plan options at the start of the financial year and submit bills to claim them. HR and payroll teams need to track these Flexible Benefit Plan choices carefully every year.