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 v1.1) 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 | Continuously available — fixed 3-month term from your own start date (renewal only by a new written agreement — see below) |
| SARS code | Code 3601 — ex gratia gross remuneration (PAYE applies at marginal rate) |
| CDII admin fee | 7.5% of total monthly disbursement |
| Tax treatment (your own employees) | Generally deductible as staff welfare expenditure under s11(a) of the Income Tax Act, subject to the usual requirements (~27% CIT saving). Not an s18A donation and not B-BBEE SED spend. |
| Pooled contributions | An unrestricted contribution to the Fund's pool (not directed to your own employees; CDII selects the beneficiaries) may qualify for an s18A deduction or B-BBEE SED recognition — never both on the same Rand. See FAQ Q6 and Q7. |
| 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 3-month term from your own start date 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 3-month term from your own start date 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?
Participation for your own employees is generally deductible as staff welfare expenditure under s11(a) of the Income Tax Act, subject to the usual requirements (incurred in carrying on your trade, in the production of income, and not of a capital nature). Because it benefits your own employees, it is not a donation, so s18A does not apply. Only an unrestricted contribution to the Fund's pool — not directed to your own employees, with CDII alone selecting the beneficiaries — may qualify as an s18A donation, within the limit of 10% of taxable income. Confirm your treatment with your own tax adviser.
Participation for your own employees is generally deductible as staff welfare expenditure under s11(a) of the Income Tax Act, subject to the usual requirements (incurred in carrying on your trade, in the production of income, and not of a capital nature). Because it benefits your own employees, it is not a donation, so s18A does not apply. Only an unrestricted contribution to the Fund's pool — not directed to your own employees, with CDII alone selecting the beneficiaries — may qualify as an s18A donation, within the limit of 10% of taxable income. Confirm your treatment with your own tax adviser.
What are the B-BBEE implications?
CDII is B-BBEE Level 1. Participation for your own employees does not earn Socio-Economic Development (SED) points — the B-BBEE Codes do not recognise contributions whose beneficiaries are the measured entity's own employees. An unrestricted contribution to the Fund's pool may qualify as SED spend under Statement 500 (Generic Scorecard) or Statement 605 (QSE), where at least 75% of its value benefits black people; CDII then provides an SED Verification Letter. The same Rand can never be claimed under both s18A and SED. Your B-BBEE Verification Agency decides what it recognises.
CDII is B-BBEE Level 1. Participation for your own employees does not earn Socio-Economic Development (SED) points — the B-BBEE Codes do not recognise contributions whose beneficiaries are the measured entity's own employees. An unrestricted contribution to the Fund's pool may qualify as SED spend under Statement 500 (Generic Scorecard) or Statement 605 (QSE), where at least 75% of its value benefits black people; CDII then provides an SED Verification Letter. The same Rand can never be claimed under both s18A and SED. Your B-BBEE Verification Agency decides what it recognises.
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
Independent Fund Architecture
All contributions are held in the SmartCommute™ Commuter Resilience Fund, administered by CDII. Participation contributions fund Social Ex Gratia Payments to your own qualifying employees; unrestricted contributions go to beneficiaries CDII alone selects. CDII retains full discretion over the Fund's administration.
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 — programme overview, implementation checklist and one-page summary — within 1 business day. The Programme Participation & Master Agreement (PP&MA v1.1) follows once you've signed a Letter of Intent. No obligation until you sign.
Request Employer Pack →