South Africa’s social grant beneficiaries are set to receive significant increases in 2025, with adjustments expected to outpace inflation.
Treasury has proposed a R23.3 billion boost to social grants and welfare programs, ensuring that vulnerable citizens receive much-needed financial relief.
This comes amid economic pressures and debates over taxation, including a rejected 2% VAT hike that could have negatively impacted low-income households.
Below, we break down the proposed SASSA grant increases, including new payment amounts and the extension of the COVID-19 Social Relief of Distress (SRD) grant.
Proposed SASSA Increases
The proposed increases aim to support the financial stability of millions of South Africans. The Old Age Grant will rise by R150, split into an immediate R140 increase in April and an additional R10 in October, bringing the total to R2,340.
Similarly, the Child Support Grant will see a R50 increase, reaching R580 per month.
These changes are designed to help recipients cope with rising living costs, particularly for essentials such as food, rent, and medical care.
New Grant Amounts
| 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 |
These increases reflect the government’s commitment to social welfare and ensuring that grant recipients can maintain a basic standard of living.
SRD Extension
In addition to permanent grant increases, the government has announced an extension of the COVID-19 Social Relief of Distress (SRD) grant until March 2026.
This grant, which benefits over 8 million South Africans, will continue at an estimated cost of R35 billion.
President Cyril Ramaphosa previously stated that the SRD grant serves as the foundation for a long-term income support system for unemployed individuals.
However, economists warn that maintaining and expanding the SRD grant could place long-term financial strain on the national budget.
Economic Considerations
The Treasury’s decision to increase grant payments comes in response to rising inflation and the need to protect low-income households.
Initially, a 2% VAT hike was considered to generate revenue, but Cabinet ultimately rejected the proposal due to its potential negative impact on the poor.
Economists suggest that while these grant increases provide short-term relief, they may create long-term fiscal challenges if not managed properly. Expanding social welfare spending requires careful balancing with economic growth and job creation initiatives.
The proposed SASSA grant increases for 2025 mark a crucial step in the government’s efforts to provide financial support to South Africa’s most vulnerable citizens.
With significant boosts to the Old Age, Child Support, and other grants, millions of people will experience some relief from the rising cost of living.
However, the long-term sustainability of these increases remains a key concern for policymakers. As the government continues to navigate economic challenges, ensuring the financial well-being of grant recipients while maintaining fiscal responsibility will be essential.
