Modular Plans

Posted in Human Resource Terms, Total Reads: 750

Definition: Modular Plans

Modular plans are another example of the flexible-benefit plans. A modular plan is a package of several different bundles of benefits which can be used by employees to select a benefit-pack of their choice.


A country’s legal system directs the employer to provide certain benefits like health insurance, pension fund, and life insurance. However, an organization can add more benefits to create a package of legally required plus extra benefits and offer it to the employees. The employees may then choose a set of benefits as per requirements. It is ensured that the legally required benefits are provided to all employees.

A modular plan benefits both the employer and the employees – the employees are free to choose their own benefits are per requirements while the employer is saved of the burden of employee dissatisfaction because of limited availability of benefits.



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