Finance Minister Enoch Godongwana’s revised Budget 3.0 has confirmed that all eight South African Social Security Agency (SASSA) grant increases for 2025 will proceed as planned.
However, the Social Relief of Distress (SRD) grant faces tighter eligibility rules, looming uncertainty post-2026, and a push toward employment-linked programs. All thanks to the scrapped 0 5 VAT proposed increase, here’s how each grant is affected.
Confirmed 2025 SASSA Grant increases
Despite a challenging economic climate that will see South Africans pay more through a 16c/l petrol hike, 15c/l diesel increase, and the current 15% VAT rise (expected to generate R18 billion in additional tax revenue), all eight SASSA grant increases for 2025 will proceed as planned. Here’s what beneficiaries need to know about the changes.
- Old Age Grant: R2,185 → R2,315 (+R130)
- War Veterans Grant: R2,205 → R2,335 (+R130)
- Disability Grant: R2,185 → R2,315 (+R130)
- Foster Care Grant: R1,180 → R1,250 (+R70)
- Child Support Grant: R530 → R560 (+R30)
- Care Dependency Grant: R2,185 → R2,315 (+R130)
- Grant-in-Aid: R530 → R560 (+R30)
See June 2025 payment dates here to avoid delays.
SRD Grant: Extended but eroded
The R370-a-month SRD grant, initially introduced during COVID-19, has been extended to March 2026. However, the revised May 2025 National Treasury’s budget framework reveals no funding beyond this date, signaling its potential phase-out.
“Government is actively exploring various options to better integrate this grant with employment opportunities,” Godongwana told Parliament.
Instead, the government plans to “better integrate the grant with employment opportunities,” including a proposed job-seeker allowance. “Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,” Godongwana added.
Critics argue the move ignores South Africa’s 32.9% unemployment rate. “Placing work-seeking conditions would be costly and ineffective … forcing people to look for jobs that simply don’t exist,” says Siyanda Baduza of the Institute for Economic Justice — in a recent report by GroundUp.
Worse, the value of the grant has not increased in accordance with inflation; meaning at R370 a month, the grant was equivalent to only R293 a month in 2020 prices, “making it worth less than when it was R350 in 2020,” Baduza added.
Need help securing your SRD grant? Fix these 11 common SASSA mistakes.
Stricter checks for all grants
New Treasury conditions mandate monthly bank account verifications and cross-checks with Home Affairs, SARS, and NSFAS for all grants, including old age and child support. SASSA spokesperson Paseka Letsatsi confirmed these checks are already rolling out in phases – with the first launched in May, causing panic and payment delays fears among SASSA pensioners.
While aimed at reducing fraud, civil society groups warn of “systemic exclusion.” The Universal Basic Income Coalition estimates millions could lose access due to administrative errors or outdated databases. This follows a Pretoria High Court ruling earlier this year that deemed similar exclusionary measures “unlawful” – a decision now under appeal.
Budget cuts looming
Treasury’s social development budget drops sharply from R285 billion in 2025/26 to R260 billion in 2026/27, reflecting the SRD’s anticipated discontinuation. SASSA must now submit quarterly reports on grant cancellations and savings, sparking fears of a “clawback” strategy.
What’s next for beneficiaries?
- SRD applicants: Double-check your status ahead of the May 2025 payment start.
- All grant recipients: Ensure your banking and ID details are updated with SASSA to avoid suspensions.
- Watch the jobs debate: Treasury’s push to link grants to employment pathways could reshape social support by 2026.
For broader Budget 3.0 impacts, including rising fuel prices and shelved food relief, read our full summary.
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