Cognizant Flexible Benefit Plan

House Rent Allowance (HRA) Food Reimbursement

Coverage: All Associates Coverage: All Associates
Eligibility limit: 0 to 60% of the Eligibility limit: Up to a maximum
basic salary of Rs. 3000 (pm)

Key Policy Highlights: Key Policy Highlights:

››  ssociates need to choose and define the HRA amount in the FBP
A ››  ssociates can avail the benefit of Food Reimbursement through meal
A
definition system on a monthly basis. cards (*)
››  ssociates can opt for an HRA amount in the range of 0 to 60% of their
A ››  ssociates need to choose and define the Food Reimbursement amount
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respective basic salary. in the FBP definition system on a monthly basis.
››  n selection, associates will be paid the defined HRA amount as part of
O ››  ssociates can redefine the amount of Food Reimbursement on a
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their monthly salary. monthly basis, subject to the prescribed limits.
›› In order to claim Tax exemption, associates need to submit the rent ›› F ood Reimbursement is proportional to the number of days an associate
receipt/bank statement and a copy of the lease agreement to the spends on India payroll in a month.
Finance team.
(*) Meal card: Meal card is a smart & secure way of providing meal vouchers.
››  ssociates availing hostel accommodation need to submit the rent
A It is a preloaded card that can be used at the office cafeterias as well as at
receipts in the hostel’s letter head or pre-printed receipt book. most of the food and beverage outlets across the country.
››  xpenses incurred on maintenance charges, electricity bill, food (in case
E To procure their meal cards, Associates need to register at
of paying guest accommodation) are not eligible for any Tax exemption. https://leads.hdfcbank.com/applications/webforms/apply/foodplus.asp
Once registered, the meal card will be delivered to the associate within next
››  ax exemption on HRA, if applicable, will be as per the prevailing income
T 10 calendar days.
Tax rules.
To get the meal cards charged / preloaded, Associates need to enter their
›› In a recent circular, the IT department has added a new clause to the card details at https://mypay.cognizant.com
section on house rent allowance (HRA). It states that “if an individual
pays more than INR 15,000 per month as rent, it is mandatory to report At the end of each month, the cards will be charged / preloaded with the
the Permanent Account Number (PAN) of the landlord to the employer. amount of Food Reimbursement defined by the associates. Once charged,
the card is ready for use.
›› In case the landlord does not have a PAN, the landlord has to sign a
declaration stating that he/she does not have a PAN. The declaration in As per the prevailing RBI regulations, the maximum maintainable amount in
turn has to be submitted by the employee to the organization that he/ a meal Card at any point of time is Rs. 20000.
she works with.
Please note that meal card usage is subject to Governmental regulations.

Leave Travel Allowance (LTA) Medical Reimbursement

Coverage: All Associates
Coverage: All Associates
Eligibility limit: Up to a maximum
Eligibility limit: Grade-wise eligibility is as described below – of Rs.15000 (pa)
Band SA & Band SM
Up to Band A
Level eqvt and Band & eqvt and
& eqvt
M & eqvt Above
Key Policy Highlights:
Annual Eligibility (Rs.) 20000 40000 60000 ››  ssociates need to choose and define the Medical Reimbursement
A
amount in the FBP definition system on a monthly basis.

Key Policy Highlights: ››  n selection, Associates accumulate Medical Reimbursement upto a

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max. of Rs. 1250 (pm).
››  ssociates need to choose and define the LTA amount in the FBP
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definition system on a monthly basis. ››  ssociates cannot claim Medical Reimbursement for amount more than
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their respective accumulation at any point of time.
››  ssociates can redefine the LTA amount on a monthly basis, but the
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changes would be effective for the month of redefinition & onwards ››  octor’s prescriptions are required to claim Reimbursement for bills
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only. exceeding Rs. 500.
››  ssociates need to avail a minimum 5 days of vacation leave in order to
A ››  laims for expenses incurred on spectacles / lens is restricted to a max.
C
claim LTA. of Rs. 1,500 (pa).
››  nly travel expenses for associates and their dependants (+) are
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reimbursable. ››  ills for dental treatment need to be supported with doctor’s
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prescription.
›› In order to claim the reimbursement of dependant’s travel expenses, the
associate must have accompanied them during the travel. ››  xpenses incurred on cosmetics and provisions must not be submitted
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››  nly expenses incurred on travel within India may be claimed for
O for Medical Reimbursement claim.
reimbursement.
Cognizant has entered into a direct tie-up with Apollo pharmacy for a
››  xpenses incurred on accommodation, recreation, sightseeing etc.
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hassle free means of claiming Medical Reimbursements online:
cannot be claimed as part of LTA.
››  ax exemption on LTA, if applicable, will be as per the prevailing Income
T - free membership with attractive discounts
Tax rules.
- no need to collect, preserve and submit the hard copy bills anymore
(+) Dependants include non earning spouse, children (a max. of 2

children up to the age of 18 years), and non-earning parents staying - more details on the Apollo Pharmacy card is available on home page
with the Associate. of https://mypay.cognizant.com
Cognizant Flexible Benefit Plan

Reimbursement of Mobile Phone Expenses Reimbursement of Car running

Coverage: Band M & eqvt and Below Coverage: Band SA & eqvt & Above
Eligibility limit: Grade-wise eligibility is Eligibility limit: Eligibility
as described below – (in Rs. Per month) based on the car
engine capacity as described below –

Up to Band A & Band SA & eqvt

Level
eqvt and Band M & eqvt
Only Fuel Fuel, Maintenance
Engine Capacity
& Maintenance & Driver Salary
Monthly Eligibility (Rs.) 500 1000
< = 1.6 liters 1800 2700
> 1.6 liters 2400 3300
Key Policy Highlights:
››  ssociates need to choose and define the amount of Mobile
A Key Policy Highlights:
reimbursement in the FBP definition system on a monthly basis.
›› It is aimed to help reimburse the car expenses incurred by them for
››  ssociates will be reimbursed for a single Post Paid connection
A official purposes.
registered in their names only.
››  n selection, Associates need to pay their mobile phone bills through
O ››  ssociates need to choose & define the amount in the FBP definition
A
the prescribed banker / vendor. system on a monthly basis. Car expenses include the expenses incurred
on fuel, maintenance, and driver’s salary.
››  ssociates are reimbursed on the basis of the bill payment Information
A
shared by the banker / vendor with Cognizant. ›› In order to avail the benefit, associates need to use cars registered in
›› If the bill amount in a month is less than the amount defined in the FBP their names at their respective current locations only.
definition system, the balance is carried forward to the next month for
reimbursement. ››  ssociates not opting for this benefit may opt for Conveyance
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Allowance. Associates will be paid Rs. 800 monthly, without submission
››  ssociates at Band SM & eqvt and above grade would not be eligible
A of any bills, if they opt for Conveyance Allowance.
for this benefit as they would be entitled to avail similar benefits as per
the “Telecommunication policy”, details of which can be obtained from
the associate’s Location Admin team.

National Pension Scheme

Coverage: Associates at all levels

Eligibility limit: Minimum contribution of Rs. 500 per month and
maximum of 10% of basic salary per month

Key Policy Highlights:

››  ational Pension Scheme (NPS) is a retirement benefit provided to employees. Originally, introduced by the Govt of India
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in 2003 and revised on 1st April, 2011.
›› The scheme is administered and controlled by the Pension Fund Regulatory & Development Authority – PFRDA.
›› Indian citizen, whether resident or non-resident, can invest in this scheme provided he is between 18 to 60 years of age as on the date of submission of
application.
›› Please refer the FBP policy document on https://mypay.cognizant.com for more details on claim process and policy details.
›› Associates to declare the desired NPS Contribution amount in the FBP definition system, available on https://mypay.cognizant.com
›› The amount so allocated will be fully Tax exempt. You can allocate a minimum of Rs.500 subject to a maximum of 10% of your basic salary.
››  fter the monthly payroll process, Cognizant will deposit the contribution amount to the Fund Manager of your choice. The details of amount
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deposited will also be made available on the My Pay portal.
›› This entire proposal is based on the current Tax laws. Any changes, if done by the government, will require this to be modified.

The policy and process details are subject to change without notice based on rules and regulations by government as appropriate.
The organization reserves the right to remove or add any new FBP components and modify the eligibility/guidelines without any prior notice.