The South African Social Security Agency (SASSA) has announced decisive measures to halt illegal deductions from the accounts of social grant beneficiaries, following a surge in complaints about unauthorised charges linked to insurance companies and other financial service providers.
In a recent update, SASSA reaffirmed that the sole purpose of social grants is to help qualifying South Africans afford basic needs and promote equality. “Your money is your money, if you qualify for a grant, the money belongs to you and as SASSA we have no right, nor authority to dictate how you utilize it,” emphasized CEO Themba Matlou.
Regulation on deductions
In line with Regulation 29 of the Social Assistance Act of 2004, beneficiaries are allowed only one deduction, not exceeding 10% of the grant’s value, and only for a funeral policy issued by an insurer registered under the Long-term Insurance Act. Crucially, this deduction requires explicit consent from the beneficiary.
Importantly, child-related grants such as the Child Support Grant, Care Dependency Grant, and Foster Child Grant—as well as the temporary Disability Grant—are excluded from funeral deductions altogether.
Growing complaints and official stance
Last month (August 2025), SASSA issued a media statement expressing concern about the upsurge in unlawful deductions. “We have utmost respect for our beneficiaries and the Act governing social assistance in the country and we will never do anything to shortchange our clients,” Matlou said, distancing SASSA from any insurance company “that uses the good name of the Agency to achieve its goals.”
SASSA stressed that it does not provide loans or funeral cover. Any claims to the contrary are fraudulent. Beneficiaries are urged to verify offers with SASSA before signing contracts and to be cautious of third-party SMS offers.
How to prevent and report unauthorised deductions
Beneficiaries are urged to:
- Avoid third-party SMS offers for airtime or financial products.
- Never share their SASSA card or PIN with anyone.
- Authorise only necessary deductions (limited to funeral policies with explicit consent).
To report unauthorised deductions:
- Call the SASSA helpline at 0800 60 10 11.
- Send a dispute SMS to 34548 with ID details, name of the financial services provider, and reason for the dispute.
- Visit the nearest SASSA local office or email GrantEnquiries@sassa.gov.za.
For step-by-step guidance, see the only insurance deductions you’re allowed to pay for.
Postbank’s role in protecting grants
Adding reassurance, Postbank has issued a statement that grants accessed through its systems remain safe. “Your SASSA grant is safe with Postbank,” read its notice, adding: “Stick with the bank that has your best interest.”
Postbank services more than three million beneficiaries and has pledged to continue protecting them from unauthorised deductions while ensuring timely payments.
This move also comes as the South African Reserve Bank (Sarb) extended the deadline to phase out the SASSA Gold Card by 15 months, after Postbank failed to meet its previous March 31 (2025) cut-off. About 450 000 beneficiaries still use the Gold Card, which was compromised by a cryptographic breach in 2021.
Under new Sarb conditions, Postbank must:
- issue a more secure “Black Card 2” with a new bank identification number,
- phase out the remaining Gold Cards,
- tighten auditing and security processes, and
- launch awareness campaigns to reach affected beneficiaries.
Tim Masela, Sarb’s head of the National Payment System department, assured Parliament this week : SASSA grant recipients are still able to use their Gold Cards, despite the indefinite suspension of Postbank’s card replacement process. “Grant recipients will not be adversely affected while we concurrently try to find solutions that are fully compliant,” he said.
Failure to comply could see Postbank losing its participation in the national payment system—a move that would have far-reaching consequences for millions of South Africans who depend on timely social grant payouts.
Looking ahead
While SASSA continues to implement stricter systems—including biometric verification measures—the agency has reiterated that protecting vulnerable South Africans remains central to its mandate.
Beneficiaries are encouraged to remain vigilant, use official communication channels, and report any suspicious activities immediately.
