Mbalula Says SASSA SRD Grant Will Be Converted To Basic Income Grant
Mbalula Says SASSA SRD Grant Will Be Converted To Basic Income Grant. The South African Social Security Agency (SASSA) is moving forward with plans to transition the current SRD (Social Relief of Distress) grant into a permanent Basic Income Grant (BIG). This groundbreaking transformation is set to reshape the future of social assistance in South Africa, particularly benefiting millions of unemployed citizens, vulnerable groups, and youth struggling to meet basic living expenses.
This article explores the full context of this announcement, its economic implications, payment structures, expected challenges, and what South Africans can expect in the coming years.
What Is the SASSA SRD Grant?
The SASSA SRD grant was introduced in May 2020 during the height of the COVID-19 pandemic as a temporary relief measure. Originally set at R350 per month, the grant aimed to provide urgent financial assistance to unemployed individuals who were not receiving any other form of social support.
Over time, the grant has been extended several times, and in 2024, it was increased to R370 per month. According to SASSA, this grant reaches approximately 13 million beneficiaries, including South African citizens, permanent residents, refugees, and asylum seekers.
Government Long-Term Vision
The Basic Income Grant (BIG) was first formally discussed during the ANC’s National Executive Council (NEC) lekgotla in January 2024. The goal is to establish a long-term and stable income support system that will cater to unemployed individuals between the ages of 18 and 59 who do not receive any other government grant.
| Goal | Details |
|---|---|
| Reduce Poverty and Inequality | Provide financial security for unemployed and low-income South Africans. |
| Promote Economic Activity | Ensure a minimum income to stimulate local spending and business growth. |
| Bridge to Employment | Support citizens while they search for jobs or gain new skills. |
| Consolidate Social Assistance | Transition from short-term relief to a structured and permanent solution. |
Fikile Mbalula Confirms the SRD-to-BIG Transition
ANC Secretary-General Fikile Mbalula made a public statement during a visit to Freedom Park in Soweto, confirming that the SASSA SRD grant will soon be converted into a Basic Income Grant. He emphasized the government’s intent to keep the R350 grant (now R370) in place while transforming it into a long-term solution.
“We are not ending the grant. Instead, we are working to turn the SRD into a Basic Income Grant that will assist people until they find employment,” Mbalula explained.
He also highlighted the ANC pushback against VAT increases, reaffirming the government’s commitment to social spending, including the hiring of more teachers, nurses, and police officers to uplift essential services.
Treasury Commitment
In his 2024 Budget Speech, Finance Minister Enoch Godongwana announced that the National Treasury has allocated R35.2 billion to fund the SRD grant extension until March 31, 2026. This financial commitment reflects the government’s recognition of the grant’s significance in alleviating poverty and ensuring a safety net for the unemployed.
Current Payment Schedule for the SRD Grant
SASSA follows a monthly payment schedule for SRD grants. These are typically processed during the last week of each month, subject to a verification process that ensures only qualifying applicants receive the funds.
| Month | Expected Payment Week |
|---|---|
| May 2024 | Final week of May |
| June 2024 | Final week of June |
| July 2024 | Final week of July |
| August 2024 | Final week of August |
| September 2024 | Final week of September |
| October 2024 | Final week of October |
| November 2024 | Final week of November |
| December 2024 | Mid-December (early payout) |
| January 2025 | Final week of January |
| February 2025 | Final week of February |
| March 2025 | Final week of March |
Note: Payment delays may occur if your application is still undergoing verification or if there are discrepancies in your details.
Why Convert SRD Grant into Basic Income Grant?
The transformation from SRD to BIG is not just a name change — it’s a strategic policy shift. South Africa is grappling with high unemployment rates, and according to Statistics South Africa, over 32% of the working-age population remains unemployed as of 2024.
By turning the SRD grant into a Basic Income Grant, the government aims to institutionalize income support, reduce dependency on short-term emergency aid, and build a sustainable social protection system.
Who Will Benefit from the Basic Income Grant?
The future Basic Income Grant is expected to target working-age adults (18–59 years old) who:
- Are currently unemployed
- Receive no other form of social grant
- Are not registered for NSFAS or UIF benefits
- Belong to low-income households
It’s especially targeted at:
- Youth seeking employment
- Single mothers without child support
- People living in informal settlements or rural areas
Potential Challenges in Implementation
While the idea of a Basic Income Grant is widely welcomed, there are concerns that must be addressed for it to succeed:
| Challenge | Explanation |
|---|---|
| Funding and Sustainability | Critics question how long the government can fund such a large-scale program. |
| Verification Integrity | Ensuring that only qualifying individuals receive the grant is vital. |
| Inflationary Pressures | Regular payments to millions may drive up consumer demand and inflation. |
| Administrative Capacity | SASSA needs efficient systems to handle millions of applications monthly. |
Delays in SRD Grant Payments – May 2024
SASSA recently issued a notice that SRD grant payments for May 2024 may face slight delays due to an ongoing verification campaign. This campaign is designed to strengthen fraud prevention measures and ensure only eligible individuals receive assistance.
Such verification includes checks against:
- Home Affairs records
- UIF and SARS data
- National Treasury databases
Beneficiaries are encouraged to regularly check their SASSA SRD grant status online and ensure banking details are up-to-date to avoid unnecessary delays.
Looking Ahead
The announcement by Fikile Mbalula and the allocation by the Treasury show that South Africa is taking significant steps toward a more inclusive and structured welfare system.
If successfully implemented, the Basic Income Grant could be a game-changer in reducing inequality, enhancing the dignity of unemployed citizens, and promoting economic inclusion.
The SRD grant laid the foundation. Now, South Africa is preparing to build a long-term bridge from poverty to opportunity.
Conclusion
The conversion of the SASSA SRD grant into a Basic Income Grant represents a monumental shift in the way South Africa addresses poverty, unemployment, and social justice. With the government showing strong political and financial will, this initiative has the potential to uplift millions and offer them a pathway toward economic empowerment.
