April 2025 SASSA grant increases LOWER than quoted

1 Views

It’s just been confirmed that April 2025 SASSA grant increases are lower than quoted from the National Treasury this week. In an official statement on the South African Social Security Agency website (see graphic below), each ‘core’ SASSA grant is lower than quoted in the 2025 Budget Speech document. But why?

Civil society groups are up in arms over this perceived snub and are asking why there is a discrepancy between the two confirmed figures? As reported by BusinessTech earlier in the week, the minister announced higher than expected, above-inflation increases of between 5.7 and 5.9% for 2025 grants. For reference, last year’s increases were a mere 4.9%. Moreover, the National Treasury admitted that grant increases needed to be that high to account for two consecutive 0.5% VAT increases in the next two years.

APRIL 2025 SASSA GRANT INCREASES

Which begs the question, why are the official April 2025 SASSA grant increases quoted by the agency lower than those of the Treasury?

Grant	March 2025	Treasury	SASSA	Increase
Old Age (60 yo)	R2 190	R2 315	R2 310	R130 (5.9%)
Old Age (75 yo)	R2 210	R2 335	R2 330	R130 (5.9%)
Foster Care	R1 180	R1 250	R1 250	R50 (5.9%)
Child Support	R530	R560	R560	R30 (5.7%)
Disability	R2 190	R2 315	R2 330	R130 (5.9%)
Care Dependency	R2 190	R2 315	R2 330	R130 (5.9%)

One possible explanation is a money-making technique, perfected by the South African Revenue Service (SARS), similar to ‘bracket creep’ with Personal Income Tax (PIT). The government effectively takes small increments of money … so small you might not notice. However, in the long term, all those percentage points add up to a lot of money in revenue collection for the government. Not dissimilar to the Chinese proverb of ‘death by a thousand cuts’.

BRACKET CREEP FOR SASSA GRANTS

Therefore, what we’re seeing for April 2025 SASSA grant increases is they’re not as high as portrayed. For example, take 4-million Old-Age Grants (60 to 74) per month. By paying only R2 310 and not the earlier quoted R2 315, that R5 per grant adds up to R20 million saved by SASSA each month. This equates to R240 million over a full year for Older Person Grants alone. And where is that money going if not into the accounts of the country’s elderly?

Then you can factor in the 1 percentage point VAT tax increase over two years, which will hurt beneficiaries’ pockets every time they shop.