Modular Plans

Published by MBA Skool Team, Last Updated: January 22, 2018

What is 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.


Explanation

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.

 

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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