When South African Social Security Agency (SASSA) rolled out the social grant increases on 1 April 2025, many South Africans felt a rare moment of relief. The move, announced by Enoch Godongwana in his March budget speech, kept the COVID‑19 Social Relief of Distress (SRD) grant steady at R370 while boosting old‑age pensions and other supports. For a country where South Africa still battles a poverty rate that could hit 63% by 2026, the timing couldn’t be more critical.
SASSA has long been the backbone of the nation’s safety net, administering everything from Child Support Grants to Care Dependency allowances. Before the April 2025 adjustment, the standard old‑age pension for citizens aged 60‑74 was R2,180 per month, with those 75 and older receiving R2,200. The COVID‑19 SRD grant, introduced as an emergency measure during the pandemic, originally stood at R350 before being nudged to R370 in late 2023.
The new schedule touches several grant categories:
While the full table is extensive, the headline numbers illustrate a clear policy shift: the government is willing to spend more on the most vulnerable, even as fiscal pressures mount.
According to World Bank projections, roughly 38.9 million South Africans – about 63 % of the population – could be living in poverty by 2026 if growth stalls. The latest Statistics South Africa Quarterly Labour Force Survey shows unemployment easing slightly, from 33.5 % in Q2 2024 to 32.1 % in Q3 2024. That dip is partly credited to the coalition government formed in June 2024, which has pursued a more coordinated job‑creation strategy.
Experts argue that the grant hike will cushion households against food insecurity and help stabilise consumption, which in turn can spur modest economic activity. A household survey by the University of Johannesburg found that 68 % of pensioners said the previous increase helped them afford basic utilities, while 54 % said it prevented them from taking high‑interest loans.
Minister Godongwana’s budget address in March 2025 framed the grant rise as a “social investment” rather than pure welfare. The coalition, comprising the African National Congress, the Democratic Alliance and smaller parties, agreed to fund the increase through a mix of higher customs duties and a modest re‑allocation from capital projects. Critics in parliament warned that the plan could widen the fiscal deficit, but the finance team countered that the social stability gained would outweigh short‑term debt concerns.
Godongwana hinted at another tranche of grant enhancements slated for October 2025, though details are still under discussion. Meanwhile, the COVID‑19 SRD grant has been earmarked to run through 2026, providing a safety net as the nation continues to grapple with post‑pandemic economic ripples. Some policy analysts propose lengthening the SRD benefit for five to seven years, arguing it could act as a catalyst for long‑term poverty reduction.
"My grandson finally got his school fees paid this month," said 72‑year‑old pensioner Thandiwe Mlambo from KwaZulu‑Natal. "The extra R130 may sound small, but it means we can buy meat instead of just rice."
Non‑profit director Sipho Dlamini of the Poverty Action Network warned, "If the next increase is delayed, we risk a surge in informal borrowing that could trap families in debt cycles."
Economist Lindiwe Nkosi of the University of Cape Town noted, "Targeted cash transfers have a multiplier effect—each rand can generate up to R1.60 in economic activity. The grant boost is a modest but meaningful stimulus."
Rural pensioners often face higher transport costs to collect their grants. The R130 uplift translates to an extra R1 000‑R1 500 per year, helping many cover additional travel expenses and allowing modest purchases of fresh produce.
The finance ministry will finance the rise through a combination of higher customs duties, a temporary cut in non‑essential capital projects, and a modest re‑allocation from the general revenue pool.
Current legislation extends the SRD grant only until the end of 2026. However, policy circles are debating a further extension, with some experts urging a five‑year horizon to ensure long‑term stability.
South Africa’s consumer price index rose 5.4 % year‑on‑year in Q3 2024. The R130 pension bump represents about a 2.5 % real‑term increase, meaning it only partially offsets inflationary pressure.
The finance ministry will publish a white paper in July 2025 outlining proposed adjustments, after which stakeholders—including NGOs and opposition parties—will submit feedback before the final decree is signed in September.
Written by Zimkita Khayone Mvunge
View all posts by: Zimkita Khayone Mvunge