Sassa received a budgetary allocation exceeding R80 billion from the National Treasury to administer social grants during the upcoming financial year.
This funding is meant to support millions of financially vulnerable individuals in South Africa who rely on government assistance to meet their basic needs. By the end of December 2024, the number of grant beneficiaries in the country had grown to over 19.2 million.
Breakdown of Sassa’s MTEF 2025/26 Plans
Sassa’s Chief Financial Officer, Tsakerwa Chauke, presented the agency’s MTEF 2025/26 expenditure summary to Parliament at the end of April 2025,
Chauke revealed that more than R3.9 billion would be allocated to goods and services, which includes essential operational costs. Transfers will account for just over R43 million, while R138 million will be allocated to capital expenditure (Capex).
Compensation for employees is capped at R3.9 billion, with all positions to be managed within this allocation. Part of the capital expenditure will support the agency’s digitisation agenda, including the implementation of a Cybersecurity Threat Intelligence and Takedown Service in response to findings related to the Social Relief of Distress (SRD) grant.
Conditions Attached to Sassa Funding
As part of its budget allocation, Sassa will be required to implement several new compliance measures aimed at improving oversight and reducing fraud. The agency has been instructed to ensure that social grants are only paid to eligible recipients.
From March 2025, Sassa will begin conducting bank income verification checks on all applicants and current recipients of child support grants (including top-up), old age grants, disability grants, and care dependency grants. If a recipient’s income exceeds the means test threshold, their grant will be subject to review.
Sassa has also been instructed to carry out regular database cross-checks with other government departments, including the Department of Home Affairs, the Department of Correctional Services, the Unemployment Insurance Fund (UIF), and the Government Employees Pension Fund (GEPF). These checks must be done when people apply for grants and twice during the financial year.
Sassa was also told to finalise an agreement with the South African Revenue Service (SARS) to access verified income data for grant beneficiaries. The agency is also expected to formalise an agreement with the National Student Financial Aid Scheme (NSFAS) which will allow for income checks for grant recipients who may also receive NSFAS funding.
The agency was also instructed to improve its biometric verification processes for all applications flagged as suspicious. This step is intended to introduce an additional layer of security within the grant approval system.
Quarterly Reports
Sassa will be required to report to the National Treasury on a quarterly basis.
These progress reports must detail the implementation of each compliance condition, including the number of grants reviewed, suspended, and cancelled.
Reports must also provide the total value of savings achieved through cancellations and highlight any challenges hindering the agency’s ability to implement the required reforms.
The first of these quarterly reports is due within 30 days after the end of the quarter.
