SASSA grant hikes expected in 2025?
As the year comes to a close, it’s time to anticipate the SASSA grant increases in 2025 and consider what the future might hold.
Regarding SASSA grant increases in 2025, the South African Social Security Agency has yet to release definitive figures. However, when it comes to SASSA grant increases in 2025, we can analyse historical trends and recent inflation data to give a well-informed projection.
As a result, we believe SASSA grant increases in 2025 will be modest but no less important to the on-going wellbeing of the country’s neediest residents. Using the finance minister’s recent mid-term budget statement, we should see an inflation-linked adjustment to government’s social support strategies, like so …
SASSA GRANT INCREASES IN 2025
According to the minister, there’s a 3.6% increase to the social grant budget for next year. This pushes the country’s social spending budget to R266 billion. Interestingly, this figure is only second in national expenditure to our debt-servicing cost, so what we’ll spend on SASSA grant increases in 2025 will be the highest ever in our nation’s history:
- 2023/24: R250 billion (current)
- 2024/25: R266 billion (next year)
- 2025/26: R246 billion
- 2026/27: R259 billion
Nevertheless, looking at historical patterns, what will social welfare payments to Older Persons, Childcare, Disability and War Veterans look like specifically? Well, between 2020 and 2024, SASSA grants experienced annual increases ranging between 4.5% and 5.5%, when we closely track official inflation rates.
APRIL 2025 SASSA INCREASE
While these incremental adjustments have been bemoaned by civil society organisations as not being high enough, their goal is to maintain grant recipients’ purchasing power against ever-rising living costs. Likewise, annual SASSA grant increase have kept pace with national wage increases each year, which should provide at least a crumb of comfort to beneficiaries.
Therefore, armed with this information, extrapolating SASSA grant increases in 2025 will most likely lead to the following numbers:
- SASSA Old-Age Grants (aged 60 to 74) currently: R2 190
- Projected increase: 5%
- Estimated 2025 value: R2 290 in April 2025 plus a further R10 to R2 300 in October 2025.
- SASSA Old-Age Grants (75 and older) currently: R2 210
- Projected increase: 5%
- Estimated 2025 value: R2 310 in April 2025 plus a further R10 to R2 320 in October 2025.
- SASSA Disability and Childcare Dependency currently: R2 190
- Projected increase: 5%
- Estimated 2025 value: R2 290 in April 2025 plus a further R10 to R2 300 in October 2025.
- SASSA War Veterans currently: R2 190
- Projected increase: 5%
- Estimated 2025 value: R2 290 in April 2025 plus a further R10 to R2 300 in October 2025.
AND THE OTHER CHILD GRANTS?
The most expensive grant to the nation’s budget is SASSA Child Support disbursed to more than 13-million parents monthly. In fact, if a child is loaded onto the SASSA Child Support system from birth, they are likely to cost government upwards of R135 000 till they are 18 years old and their parents must give up the stipend. Nevertheless, here are our estimations …
- SASSA Child Support currently: R530
- Projected increase: 5%
- Estimated 2025 value: R560 in April 2025.
- SASSA Child Support Top-Up currently: R250
- Projected increase: 5%
- Estimated 2025 value: R265 in April 2025.
- SASSA Foster Care currently: R1 180
- Projected increase: 5%
- Estimated 2025 value: R1 400 in April 2025.
- SASSA Social Relief of Distress (SRD) will remain unchanged at R370 in 2025.
KEY CONSIDERATIONS
Beyond historical data, key considerations with the potential to disrupt SASSA grant increases in 2025 include inflation rates and government budget constraints, as alluded to by Finance Minster Enoch Godongwana. Likewise, global economic stability in the face of Donald Trump’s election in the United States could also play a crucial role.
Just as South Africa’s ongoing economic challenges – including high unemployment and consumer inflation – could significantly influence the National Treasury’s balance of fiscal responsibilities next year. We expect official SASSA and National Treasury announcements on SASSA grant increase in 2025 to be announced soon …