For Employers
A responsible employer response.
Not a payroll problem.
SmartCommute™ gives your leadership team a structured way to acknowledge the real financial pressure on your people — without creating employment rights, payroll obligations, or precedents.
Five steps, from decision to first payment.
1
Board resolution
Your Board adopts CDII's Board Resolution Template — 7 substantive resolutions covering programme approval, tax election, payroll configuration, and employee communication.
2
Sign the PP&MA
Sign the Programme Participation & Master Agreement (PP&MA v1.0) with CDII as Disbursement Agent. CDII remains the independent Programme Principal, controlling all eligibility decisions.
3
Submit employee data
HR completes the Employee Data Template — salary Band information only, used solely to determine each participant's payment amount.
4
Receive Disbursement Notices
CDII issues a written Disbursement Notice each month specifying exactly what to pay and to whom. You process it — no discretion to vary.
5
Employees are paid
A separate payroll run, at least 5 business days before your normal salary date, clearly labelled as a Social Ex Gratia Payment.
Everything your Board needs to make the decision.
| Payment amount | R550, R575, or R600 per qualifying participant per month, fixed by salary Band Band A: R600 (NMW–R14,180.80/mth) | Band B: R575 (R14,180.80–R22,466.74/mth) | Band C: R550 (R22,466.74–R30,752.69/mth) — salary Band placement only, per Board Resolution CDII/BR/2026/003 |
| Programme period | 1 August 2026 – 31 October 2026 (3 months, extendable at your discretion — see below) |
| SARS code | Code 3601 — ex gratia gross remuneration (PAYE applies at marginal rate) |
| CDII admin fee | 7.5% of total monthly disbursement |
| Primary tax saving | ~27% CIT deduction as staff welfare expenditure under s11(a) of the Income Tax Act — available immediately, without SARS election |
| Alternative election | s18A donation deduction (may qualify, subject to SARS assessment). Mutually exclusive with s11(a) — elect one. |
| Statutory deductions | PAYE applies. UIF, SDL, COIDA and benefit funds DO NOT APPLY to Social Ex Gratia Payments under Code 3601. |
| Payroll processing | Separate run — at least 5 business days before regular monthly salary run |
| Bank reference | "Social Ex Gratia Payment — Staff Welfare Assistance" (distinct from salary at transaction level) |
| Payment type | Non-contractual, non-recurring, ex gratia — does not form part of remuneration |
Four questions your Board, CFO, and HR Director will ask.
Does this create an employment right?
No. The Social Ex Gratia Payment is non-contractual and non-recurring. It expressly does not form part of remuneration under s213 of the LRA or s35 of the BCEA. The programme runs for a fixed initial term (1 August – 31 October 2026) and does not renew automatically — any extension requires a fresh, documented decision by the employer under PP&MA clause 4.4. Because continuation is never implied and must be actively re-elected each time, this addresses the risk of the payment being treated as a benefit giving rise to a legitimate expectation of continuation under s186(2)(a) of the LRA — the unfair labour practice provision covering the provision of benefits (see Apollo Tyres South Africa (Pty) Ltd v CCMA). All participants acknowledge the non-contractual character in the Employee Acceptance Form before their first payment.
No. The Social Ex Gratia Payment is non-contractual and non-recurring. It expressly does not form part of remuneration under s213 of the LRA or s35 of the BCEA. The programme runs for a fixed initial term (1 August – 31 October 2026) and does not renew automatically — any extension requires a fresh, documented decision by the employer under PP&MA clause 4.4. Because continuation is never implied and must be actively re-elected each time, this addresses the risk of the payment being treated as a benefit giving rise to a legitimate expectation of continuation under s186(2)(a) of the LRA — the unfair labour practice provision covering the provision of benefits (see Apollo Tyres South Africa (Pty) Ltd v CCMA). All participants acknowledge the non-contractual character in the Employee Acceptance Form before their first payment.
What SARS code applies?
Code 3601 — ex gratia gross remuneration. PAYE applies at the employee's marginal rate. UIF, SDL, and COIDA do not apply to this payment and must not appear as deductions. Code 3703 (reimbursive travel) does not apply — this is not reimbursement for business travel under s8(1) of the Income Tax Act, and eligibility does not depend on commuting distance or mode of travel.
Code 3601 — ex gratia gross remuneration. PAYE applies at the employee's marginal rate. UIF, SDL, and COIDA do not apply to this payment and must not appear as deductions. Code 3703 (reimbursive travel) does not apply — this is not reimbursement for business travel under s8(1) of the Income Tax Act, and eligibility does not depend on commuting distance or mode of travel.
Is the tax deduction available?
Yes — under s11(a) of the Income Tax Act as staff welfare expenditure, immediately available to all qualifying employers without a separate SARS election or approval. Employers who wish to go further may alternatively elect the s18A donation deduction, in which case CDII issues an s18A certificate monthly. The two treatments are mutually exclusive. Confirm preferred treatment with your independent tax adviser.
Yes — under s11(a) of the Income Tax Act as staff welfare expenditure, immediately available to all qualifying employers without a separate SARS election or approval. Employers who wish to go further may alternatively elect the s18A donation deduction, in which case CDII issues an s18A certificate monthly. The two treatments are mutually exclusive. Confirm preferred treatment with your independent tax adviser.
What are the B-BBEE implications?
CDII is B-BBEE Level 1. Contributions qualify as Socio-Economic Development spend under Statement 500 (Generic Scorecard) or Statement 605 (QSE). You may earn up to 5 SED scorecard points. CDII issues a B-BBEE SED confirmation letter monthly. B-BBEE SED recognition is unconditional — independent of which tax route you elect. Note: you cannot double-count the same rand for both s18A and B-BBEE SED — the CDII Fund structure addresses this.
CDII is B-BBEE Level 1. Contributions qualify as Socio-Economic Development spend under Statement 500 (Generic Scorecard) or Statement 605 (QSE). You may earn up to 5 SED scorecard points. CDII issues a B-BBEE SED confirmation letter monthly. B-BBEE SED recognition is unconditional — independent of which tax route you elect. Note: you cannot double-count the same rand for both s18A and B-BBEE SED — the CDII Fund structure addresses this.
Built to withstand scrutiny from SARS, unions, and B-BBEE VAs.
Legal
Programme Participation & Master Agreement
CDII as independent Programme Principal. You as Disbursement Agent. CDII controls all eligibility decisions — you execute payroll per Disbursement Notice only.
Governance
Board Resolution Template
7 substantive resolutions covering programme approval, tax election, payroll configuration, and employee communication. CDII provides the template — ready to adopt.
Structural
Pooled Fund Architecture
Contributions are pooled in the SmartCommute™ Commuter Resilience Fund — not earmarked to specific employers' employees. This structural independence supports both s18A integrity and B-BBEE SED qualification.
Payroll
Disbursement Notice Mechanism
CDII issues every Disbursement Notice in writing. Employer processes per instruction. No employer discretion to vary or withhold — this structure ensures CDII's independence as Programme Principal.
SmartCommute™ is not fuel relief.
It is workforce resilience architecture.
Ready to protect your workforce?
Request the Employer Executive Pack — board summary, cost model, legal framework, and Programme Participation & Master Agreement (PP&MA v1.0) — within 1 business day. No obligation until you sign.
Request Employer Pack →