IDC Remuneration and Benefits 2024

Remuneration and Benefits 2024

Who to contact

when you need help or more information.

For any assistance relating to the IDC benefits or Provident Fund administrative matters please contact your Human Centre Advisor:

Tel +27 11 269 3222 HCservicecentre@idc.co.za

Employees are encouraged to access their Total Rewards Statement on ESS

You can access your Provident Fund information 24 hours a day by logging onto www.afonline.co.za from any computer and clicking on the ‘Register for access’ button.

For Provident Fund professional advice

Your contracted financial consultant is:

Chris Viljoen CFP® Senior Financial Consultant Financial Planning Consultants

Tel +27 11 269 1171 Fax +27 11 263 0817 Mobile +27 72 629 1995 viljoenc@aforbes.co.za

Buhle Menoe CFP® Principal Consultant Consultants and Actuaries

Tel +27 11 269 0039 or +27 11 269 2632 Mobile +27 82 534 7363 menoebu@aforbes.com

Table of contents

Our values

IDC employees are at the centre of the Corporation’s success.

Our day-to-day activities and business conduct are guided by our values:

We’re committed to

fair and respectful treatment.

recognition and rewards for good work.

competitive pay and benefits.

support for personal and professional development. resources to get the job done.

Partnership Professionalism Passion

01.

KNOW YOUR TOTAL REWARD OFFERING

Total rewards 01. Operating Model

GUARANTEED REMUNERATION

• Basic salary

• Medical aid

• Provident fund

• 13th cheque

• Car allowance

• Disability cover

• Group Life Assurance

VARIABLE REMUNERATION

• Non-pensionable allowance

• Short-term incentive

• Long-term incentive

BENEFITS

• Subsistence, Connectivity allowance and UPS subsidy

• Leave (Annual, Sick, Study, etc.)

• Employees bursaries

• Bursaries (children of employees)

• Professional fees

• Funeral benefit

• Group Life Assurance

• Group Personal Accident

• Cover

• Employees insurance (Car & home)

RECOGNITION & CAREER DEVELOPMENT

• Recognition framework

• Long Service Awards

• Study-aid for employees

• Learning and development Initiatives

• Career management interventions (e.g. secondments, coaching, rotation)

WORK-LIFE HARMONY

• Employee Wellness Programme

• Annual Health Risk Assessment

• Annual medicals (40 years and above)

• Gym offering (Physical & Online)

• Flexible work practices

• Child care facility

• Shuttle for Gautrain

• Gap cover

1

Understanding your Guaranteed and Variable Remuneration

Guaranteed remuneration

Your remuneration is based on a total-package methodology, where monthly contribution for the following benefits are deducted from your guaranteed package: medical aid cover, provident fund, Insured benefits, travel allowance (subject to eligibility) and a 13th cheque (not mandatory).

You have flexibility in structuring your salary package by selecting your medical aid option, provident fund and level of insured benefits. You also have the option of a 13th cheque as well as tax-spreading for retirement annuity contributions.

02. 2

Variable remuneration

Short-Term Incentive (STI)

The short-term incentive at the IDC is discretionary and is dependent on corporate, team and individual performance levels. The STI is paid for achieving stretch targets that are over and above the normal scope of work.

* Corporate Modifier%

A factor based on the financial year end STI Corporate performance rating and ranges between 0% and 116.67%.

** Refer to the STI guidelines which contains the table that converts the 1.0 to 5.0 Corporate performance rating to a Corporate Modifier%.

Team: Ind Modifier%

A factor that is derived from the combination of the Team Performance Rating and Individual Employee Performance Rating and ranges between 0% and 120%.

The following STI rules apply:

Individual Performance

Ratings: as determined from the Individual Performance Management system.

higher and with a team performance rating of at least 2.0.

Once qualified, the STI payable will be determined according to the following STI formula:

To qualify for STI both the IDC and individual employee’s financial year end performance ratings must be 3.5 or

Individual STI = Annual Guarante ed Package (AGP) x CAPS% x Corporate Modifier% x Team:Ind Modifier%

AGP = the individual employee’s AGP

CAPS% = the STI% of AGP according to the following diagram:

Non-Pensionable Allowance (NPA)

The non-pensionable allowance is earned at a performance score of 3 for corporate and individual performance respectively.

The NPA percentage of AGP payable is summarised in the diagram below:

Long-Term Incentive (LTI)

Only employees who strategically influence the longterm developmental and sustainable performance of the Corporation are eligible for the LTI. However, LTI is discretionary and the Board of Directors has the authority to change or withdraw the LTI.

IDC benefits* 03.

Retirement

The retirement age is 60 for employees who joined IDC after 1 March 2000 and age 65 for those who joined before that date.

The following guidelines apply to employees who retires with at least 10 years’ service:

• An amount of R500 is paid in lieu of a gift for each completed year of service.

• A farewell function will be held for employees who retires.

• This function is paid by the IDC to a maximum budget of R13 000

• The employees may choose the format of the function that it is acceptable with the values of the IDC.

Bursaries for children of employees at tertiary institutions

The IDC currently provides bursaries up to Masters level for children of employees to the age of 25, subject to the rules of the scheme. Tuition, accommodation, meals and books are included.

This benefit is also extended to the children of the deceased or retired employee.

UPS subsidy

To empower employees and to minimise productivity disruption and inconvenience during load shedding, a once-off subsidy of R3500 (after tax) will be paid to an employee to acquire a UPS device.

Connectivity allowance

An allowance per band is paid to employees to enable them to buy their own cellular devices or network packages. This allowance is paid on condition that employees are contactable through all IDC collaboration and communication platforms. The breakdown of the allowance per band is as follows:

Home Assistance

Head of Department/SBU

R1250 R1000

P Band

Regional Managers / Sector Leads / M bands / Champions

R1000 R500

A Band

Connectivity Allowance per month after tax

Uncapped broadband/Fibre allowance

To encourage employees to install uncapped broadband in their homes, an allowance of R150 per month (after tax) will be paid.

Business-related travel

Employees are entitled to claim reimbursement for business-related travel at a fixed rate as per the IDC travel policy.

A daily subsistence allowance for local travel is paid at the prescribed SARS rate for employees spending at least one night away.

Where employees spend part of the day away from his/her place of employment an incidental cost as per the SARS rate is payable.

For international travel, the rates are paid per country, refer to the guidelines in the in the Travel Policy (linked to the SARS guidelines).

IDC insurance scheme

Discounted insurance premiums and excesses on motor, household and homeowners’ (property owners’) insurance.

Upon joining the Motor Insurance Scheme, employees qualify for free towing for accidents and mechanical/ electrical breakdowns (maximum towing distance of 60km, round trip).

Home Assistance for any (non-insurance) maintenance-related work. Callout and first hour of labour covered up to R2 000 per annum or a maximum of 3 incidents.

Insurance App for motor claims in the event of an accident, IDC employees can access assistance, log claims and take photographs of the accident scene, using this App. The portal can also capture third party details to assist insurers in recovering claims from third parties

Upon joining the Motor Insurance, Car Hire Scheme is available but optional, deposit-free car hire, subject to the scheme member returning the hired car with a full tank of fuel. Should the hired car be involved in an accident, the insured will be liable for the normal IDC Motor policy excesses.

Upon joining the Homeowners’ Insurance Scheme, the insured will qualify for free basic subsidence and landslide cover (subject to insurer’s requirements for certain risk areas).

(Refer to IDC Leave Policy)

Annual leave

Employees are entitled to 21 days’ annual leave per annum. The 21 working days is comprised of the following:

• Statutory leave of 15 working days or 1.25 days per month.

• Non-statutory leave of 6 working days or 0.50 days per month.

Service leave

Employees who joined the Corporation prior 1 January 2017, will accrue 10 working days after completing three years of service. Employees who joined the Corporation from 1 January 2017 and thereafter will

accrue 5 days per annum after completing 5 years of service. Employees who joined from 1 February 2024 are not eligible for Service Leave.

Employees can encash 100% of the service leave balances.

Sick leave

During the first six months of employment the BCEA rules apply whereby an employee is entitled to 1day’s paid sick leave for every 26 days worked (i.e., 6 days for the first six months).

After completion of 6 months, sick leave will be granted for the balance of 36 days at full pay.

Once employees have exhausted normal sick leave, they may be eligible for extended sick leave.

Maternity leave

Employees are entitled to 4 months paid maternity leave. An employee who has had a miscarriage during the third trimester of pregnancy or who bears a stillborn child, is entitled to maternity leave for 6 weeks after the miscarriage or stillbirth.

Adoption leave

An employee is eligible to take four (4) months paid adoption leave from the date on which adoption or taking custody has occurred.

The adoption leave is granted only in respect of the adoption of children up to the age of 2 years.

Surrogacy leave

The following applies in relation to surrogacy leave:

• An employee who is pregnant and who have opted to be a surrogate mother is entitled to 6 weeks maternity leave from the date of delivery.

• An employee, who is the primary caregiver is entitled to four (4) months paid surrogacy leave from the date that the child is born in cases of a surrogacy motherhood agreement (commissioning parent/receiving parent).

• Certified copies from the employee that will primarily be responsible for looking after the child is required in cases of a surrogate motherhood agreement.

Parental leave

Parental leave of up to eight (8) working days per annum will be granted to employees in the event of:

• The birth of the employee’s child;

• When (the date) the adoption order is granted (does not apply to the primary caregiver); or

• When the child is placed in the care of the prospective adoptive parent by a competent court, pending the finalisation of an adoption order in respect of that child, whichever date occurs first.

Family responsibility leave

Leave of up to 5 days per annum will be granted for the following:

• If the employee’s child is sick.

• the hospitalisation to the employee’s spouse or life partner and parent.

• In the event of the death of an employee’s spouse or life partner.

• In the event of the death of an employee’s parent, adoptive parent, grandparent, parents-in-law, child, adopted child, grandchild or sibling.

Study leave

Study leave on full pay may be granted to an employee in respect of the following:

• One day prior to writing an approved examination.

• The day of the examination.

A provision limited to a maximum of 20 days per annum will be granted for:

• Whatever may be required in respect of compulsory attendance of study school.

Sports leave

Leave of up to 5 days for national (inside the borders of South Africa) and up to 10 days for international.

Religious and cultural leave

Employees are entitled to take leave to observe their religious beliefs and notable cultural events where these are not designated as national public holidays:

• A maximum of 2 working days may be taken per annum to observe these days.

• Religious and Cultural leave must be taken on the day on which it is being observed and cannot be exchanged.

Relocation leave

Relocation leave up to 5 days shall be granted where an employee is requested either by the Corporation to change their place of residence or where an employee applies for a position and is appointed into a position in a different location.

Group life assured benefits 04.

The insured benefits currently consist of group life assurance, disability benefit insurance, cover for spouse and children and 24-hour accident insurance cover.

IDC Death Benefits

A lump sum of 2.25% of the annual fund salary, payable to dependents by the insurer; or the greater of 2x the annual fund salary or fund credit; plus, spouse pension equal to 50% of the fund salary for life; plus, child pension equal to 10% of spouse pension per child (maximum 3 children). A child’s pension normally ceases when the child reaches the age of 18 but may continue after then if the child is undergoing full-time education or is incapable of self-support.

In addition, the Group Life cover will be paid upon death to the beneficiaries based on the selection of the death cover i.e., 2x or 3x of the annual remuneration package.

Sanlam Funeral Benefit

This employer paid benefit for the employee, spouse/ life partner and children are as follows:

• Principal member/employee (cover up to age 65)

• Spouse (cover up to age 65)

• Children (cover from 26 weeks up to age 26)

• A child who is unmarried and over the age of 21 years, but under the age of 26 years must be a registered student at an approved educational institution.

Disability Benefits

A total of 60% of the monthly fund salary is payable until normal retirement age. The Fund credit pays out at normal retirement age, upon which the income replacement salary ceases.

In addition, the Group Life cover is payable to the employee to a maximum of 2x the annual remuneration package upon permanent disability.

24-hour accident insurance resulting in permanent disability

Cover provided as a multiple of annual remuneration package (1x, 2x, 3x or 4.2x) plus R375 000 for medical expenses.

05.

ON-SITE BENEFITS

On-site benefits 05.

Facilities

Tea, coffee, canteen, kiosk and vending machines

IDC Gym

Security on site whilst at work.

Additional benefits include a travel agency (IDC Travel), laundry service and mother’s room for breastfeeding moms.

Parking

Free parking is available at the IDC premises.

Employees Shuttle Service

The free shuttle service between the IDC and the Gautrain station operates for multi-transfers from Mondays to Fridays during peak-hour traffic periods.

IT equipments/Tool

T equipment is made available to employees i.e., laptops, 3G cards (subject to approval).

Child Development Centre

An on-site childcare facility is available at a reduced employees rate for children aged 3 months to 5 years.

Offering to regional employees members

Employee Wellness Programme (EWP)

• AskNelson , powered by Kaelo, provides professional counselling support and services to employees and their loved ones.

• You can access the AskNelson Benefits by calling 0861 635 766 for immediate assistance.

• The key benefits are Counselling, Legal & Financial Advice and Coaching.

Annual Medical Assessments

• For qualifying employees, 40 years of age and above, a physical examination, blood tests and post consultation with a qualified medical practitioner is offered by one of our designated service providers.

Wellness Programme Initiatives

• Annual IDC Wellness Days

• Flu vaccines

• Ongoing communication and awareness of relevant health-related topics

• Get Well/Sympathy flowers as per IDC Flower Policy

A dedicated Health and Wellness Specialist is available.

IDC Creche

Regional employees with children at a local creche facility will be compensated where the cost exceeds that paid by parents at Head Office.

06.

06.

Education, training and professional body membership support

EDUCATION SUPPORT & PROFESSIONAL MEMBERSHIP

The IDC allows employees to attend relevant workshops, conferences/seminars and short training courses, at the cost of the Corporation.

1 3 4 2

Formal and informal training IDC loan facility

Children with Special Needs School Loan (all employees). Loan to employees with disabilities for the purchase of disability-related equipment.

Professional membership

Employees are eligible to a maximum of two professional associations paid by the IDC.

Employees bursary scheme

The IDC provides financial assistance to employees who wish to further their education on part-time basis at any institution. The assistance covers tuition fees and prescribed study material, where applicable.

07.

Flexible working arrangement

The IDC’s official office hours are 08:15 to 16:45, inclusive of an hour lunch break.

Employees may start at 07:30 and leave at 16:00 or start at 09:00 and leave at 17:30 or fix their time.

Some employees are allowed to work from home on certain days, as part of a team rotation system under the Hybrid Working Model Pilot Guideline principles.

FLEXIBLE WORKING ARRANGEMENT

Career opportunities 08.

Through the internal recruitment process, employees can apply for positions they believe they qualify for.

Employees can also advance their career at the IDC through employees bursaries, coaching, mentoring, employees rotations, secondments and succession planning. The following allowances are paid to employees:

1 2 Secondment Acting

In the event that the IDC requires an employee to be seconded to another organisation or be required to relocate due to secondments for a period of a month or longer, the following guidelines will apply:

The secondment allowance will be paid monthly based on a percentage of monthly guaranteed package for the duration of secondment.

The percentage will be based on whether relocation was required as well as whether the role is in a higher or similar position. This is specified in the table below:

CAREER OPPORTUNITIES

09.

RECOGNITION AWARDS

Recognition awards 09.

Long service awards

Employees are awarded in the month of anniversary after completing long service of:

05 Years

Years

Years

Years

25 Years

Years

45 Years Amounts reviewed as and when policy is updated.

Employee Recognition Framework

On-the-Spot Recognition (Non-Financial Rewards e.g., time/off)

On-the-Spot Recognition (Financial Rewards e.g., after tax payment)

Day-to-day recognition is informal and on-the-spot (peer-to-peer, manager–to-employee).

Criteria are as follows:

• Living the values (On-the-Spot)

Employees who visibly live the IDC values.

• Mentorship (On-the-Spot)

Employees who serve as exemplary role models and mentor employees within a Department/Division and/ or across the Corporation.

• Client centricity (On-the-Spot)

Employees who demonstrated a high level of commitment to customers (internal and/or external clients) within IDC Mini-Group.

• Quarterly recognition

Each individual award winner will receive cash amount of R20 000 after tax.

Each team award winner will receive a certificate and cash amount of R5 000 after tax.

• Annual & Special recognition

Each individual award winner will receive a framed certificate and cash amount, First prize of R60 000, Second prize of R40 000 and Third prize of R20 000 after tax.

Leadership Award

The award winner will receive a framed certificate and cash amount of R100 000 after tax or any other prize.

Innovation Award

The award winner will receive a framed certificate and cash amount of R100 000 after tax or any other prizel.

• Cross-collaboration

Employees from different areas in the organisation who join forces to solve problems or implement solutions and improvements.

Quarterly and annual recognition is structured and carry a monetary value

• Special recognition

Formal recognition that makes provision for:

• Employee who has displayed leadership behaviour in leading a project or a team characterised by resilience or delivers a long-term benefit to IDC.

• Employees whose innovative ideas/suggestions were implemented/or who on their own implemented innovative ideas with a long-term benefit for the IDC or the IDC Mini-Group.

• Special recognition is structured and carry a monetary value.

Important points

The described benefits are subject to change at any point in accordance with the IDC’s policies and procedures.

These benefits can be revised at the discretion of the IDC at any point.

Some of the benefits listed are subject to tax, according to the South African Revenue Services’ legislation. All benefits quoted in this brochure are subject to the terms and conditions of the IDC’s policies and procedures, which can be found on SharePoint.

NOTES