Johannesburg – Hope for millions as government plans above-inflation South African Social Security Agency (SASSA) grant increases for 2025.
In a significant move aimed at supporting South Africa’s most vulnerable populations, Treasury has proposed substantial increases to social grants for 2025, with adjustments expected to outpace inflation. This development comes amid ongoing economic pressures and a contentious debate over a proposed 2% VAT increase, which was ultimately rejected by Cabinet ministers in the Government of National Unity (GNU).
Finance Minister Enoch Godongwana’s undelivered Budget Speech, which was postponed to March 12, revealed plans for a R23.3 billion injection into social grants and welfare programmes. This allocation was intended to shield over 25 million social grant beneficiaries from the potential negative impact of the proposed VAT hike, which would have disproportionately affected low-income households.
Proposed grant increases above inflation
The proposed increases include a R150 boost to the old age grant, with an immediate R140 increase in April and an additional R10 in October, bringing the monthly payout to R2,340. The child support grant, which supports nearly 13 million children, was set to rise by R50 to R580 per month, while the foster care grant would see an R80 increase to R1,260.
These adjustments are designed to provide much-needed relief to millions of families struggling with rising living costs.
“Spending on social grants is allocated an additional R23.3 billion. This is to ensure that low-income households are not left worse-off by the increase to the VAT rate,” Godongwana had intended to announce in his Budget Speech.
Extension of COVID-19 Social Relief of Distress Grant (SRD)
In addition to permanent grant increases, the COVID-19 Social Relief of Distress (SRD) grant, which supports over 8 million recipients, was set to be extended until March 2026 at a cost of R35 billion. This extension aligns with President Cyril Ramaphosa’s State of the Nation Address (SONA) commitment to use the SRD grant as a foundation for a sustainable income support system for unemployed individuals.
Arthur Kamp, chief economist at Sanlam Investments, highlighted the potential long-term implications of expanding the SRD grant. “Increasing the number of recipients implies higher spending of more than R30-billion a year if implemented in future years. Neither of these spending risks are expected to influence the Treasury’s near-term expenditure projections, but the medium to long-term risk lingers,” he told the Daily Maverick.
Below are the proposed increases for all grants in 2025:
| Grant Type | Old Amount (R) | Increase (R) | New Amount (R) |
|---|---|---|---|
| Old Age Grant | 2,185 | 150 | 2,335 |
| War Veterans Grant | 2,205 | 150 | 2,355 |
| Disability Grant | 2,185 | 150 | 2,335 |
| Foster Care Grant | 1,180 | 80 | 1,260 |
| Care Dependency Grant | 2,185 | 150 | 2,335 |
| Child Support Grant | 530 | 50 | 580 |
| Grant-in-Aid | 530 | 50 | 580 |
*Note: with the Budget Speech postponed to March 12 for further deliberations, the amounts listed above are currently under review and may be subject to change.
