Your employer is offering this to help — here's exactly what it means for you
SmartCommute™ is a legitimate, CDII-administered programme. No catch, no fine print you need to find on your own.
What it costs you
Nothing. This is a payment to you, not a deduction. Like any income, PAYE applies at your marginal rate — so the amount in your pocket is slightly less than the gross tier, but it's still money you didn't have before.
How it reaches you
As a separate line on your payslip, labelled "Social Ex Gratia Payment" under SARS Code 3601, paid 5 or more business days before your normal salary run.
Is it legitimate?
Yes. It's administered by CDII, a registered NPC, under a formal agreement with your employer. You'll receive an IRP5 reflecting it, exactly like any other taxed income.
Does it affect my benefits?
No. UIF, SDL, COIDA, pension, medical aid, and group life don't apply to this payment — it sits alongside your normal benefits, not instead of them.
Your tier
Your employer assigns your tier based on your commute. Three tiers exist:
See how the journey works
From sign-up to your first payment — what actually happens, step by step.