Reimbursable Flexible Benefits (RFB) at PwC are a component of an employee's compensation designed to help reduce their tax burden

 Reimbursable Flexible Benefits (RFB) at PwC are a component of an employee's compensation designed to help reduce their tax burden. These benefits allow employees to receive reimbursements for specific expenses, and if not claimed for reimbursement, the amount is typically added to the employee's taxable salary. 

Here's a more detailed explanation:

What are RFB's?

RFB is a variable component of your salary structure, often including items like Leave Travel Allowance (LTA), internet, telephone, and fuel expenses. 

The total RFB amount is fixed based on your role or position within PwC. 

Employees can choose to claim reimbursement for these expenses by submitting supporting bills (e.g., travel bills, fuel bills, internet bills). 

If expenses are not claimed, the RFB amount is typically added to your taxable salary, and taxes are levied on that portion. 

How do they work?

Claiming:

Employees can submit bills for eligible expenses to their HR or payroll department to get reimbursed. 

Tax Savings:

By claiming reimbursements, employees can reduce their overall taxable income, leading to tax savings. 

Timing:

Reimbursements may be processed monthly or quarterly, or even as a lump sum at the end of the year, depending on company policy. 

No Claim:

If you choose not to claim the RFB component, the full amount is added to your salary and taxed accordingly. 

Key points to remember:

RFB is not a variable pay component; it's already factored into your Cost to Company (CTC). 

It's important to understand the specific rules and guidelines for claiming RFB at PwC, as they can vary. 

You should carefully consider which expenses to claim for reimbursement to maximize your tax savings. 

Consult with your HR or finance department for clarification on the specifics of your RFB plan.