1. How do I set up flexible benefit plans for India?
  2. Create Flexible Benefit Plan

Create Flexible Benefit Plan

You can create different plans based on the salary basis and the eligibility profiles that are monthly or annual based on the salary basis.

Before you start

  • You need to set the scope to the required legal employer.
  • Ensure the predefined eligibility profiles are available before configuring the flexible benefit plan.

To create the flexible benefit plans:

Navigation: Navigator > My Enterprise > Setup and Maintenance > Legal Structures > Legal Entity Calculation Cards

Here's what to do

  1. Click Add to create a new flexible benefit plan calculation card.
  2. Select the Name as Flexible Benefits Plan and set the effective date of the plan.
  3. Click Create New Plan.
  4. In the Plan Details section:
    1. Provide a name for the plan, for example, Monthly FBP Plan.
    2. Select the Plan Frequency: monthly or annually.
    3. Enter the Effective Start Date.
    4. Select one of the Salary Basis Type such as Simple Component or User Entered Amount.
      In the Compensation module, employees are mapped to different salary basis types such as Simple Components or User Defined Amount. Based on this salary basis selection, you can administer the FBP plans to the employees mapped to either Simple Components salary basis or User Defined Amount salary basis.
    5. Select the plan-level Eligibility Profile thats predefined.
  5. In the Components section
    1. Add the required fixed and flexible components to the plan specifying the sequence. Employees will view their fixed and flexible plan components on their self-service pages based on this sequence.
      Important: You need to create one component each for Total Annual Gross Pay (AGP), Overall Fixed Salary, and Overall Flexible Salary components for every plan. The frequency of the salary basis needs to match the payroll element periodicity.
      For more information on sample values, see Examples of Monthly and Annual Flexible Benefit Plans
    2. Specify the value for percentage based components.
    3. Specify the default values for fixed and flexible value components across the organization.
    4. Assign rules to validate the values entered by the employee after restructuring their flexible benefits plan.
    5. Define the component level eligibility.
  6. Submit the changes.

Results:

You can view, edit, and set the end date for the plan only after you save and submit the plan. You can't delete plans that have employees still enrolled in them.