SASSA Grant Increases and SRD Extension: Key Takeaways from National Budget 3.0

Simekahle Mthethwa26 May , 2025

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The South African government’s Budget 3.0, delivered in May 2025, brings important updates on social grants, particularly for Gauteng residents reliant on these funds. This article provides an informative and analytical overview of the key changes announced, focusing on the increases to South African Social Security Agency (SASSA) grants and the extension of the Social Relief of Distress (SRD) grant.

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Budget 3.0 confirms that all major social grants will receive increases effective for the 2025/26 financial year. These adjustments aim to provide relief amid ongoing economic challenges and inflationary pressures.

The key grant increases are as follows:

Old Age Grant: Increased from R2,185 to R2,315 per month
War Veterans Grant: Raised from R2,205 to R2,335 per month
Disability Grant: Increased from R2,185 to R2,315 per month
Foster Care Grant: Raised from R1,180 to R1,250 per month
Care Dependency Grant: Increased from R2,185 to R2,315 per month
Child Support Grant: Raised from R530 to R560 per month
Grant-in-Aid: Increased from R530 to R560 per month

These increases represent a consistent uplift of between R30 and R130 per month, depending on the grant type. The government has allocated an additional R1.6 billion to the social grants budget to accommodate these rises.

A significant announcement in Budget 3.0 is the extension of the temporary COVID-19 Social Relief of Distress grant. Initially introduced during the pandemic to assist unemployed and vulnerable South Africans, the SRD grant will now continue until 31 March 2026. The monthly amount remains at R370 per beneficiary, with R35.2 billion allocated to maintain this support, including administration costs.

Finance Minister Enoch Godongwana emphasised that this extension is the last planned one for the SRD grant. The government is actively exploring ways to better integrate the SRD with employment initiatives. This includes considering a job-seeker allowance and reviewing Active Labour Market Programmes to create pathways from relief to sustainable employment.

CHECK OUT: SASSA SRD Grants Paid Early in May: 2025 Update for Gauteng Beneficiaries

Budgetary Implications and Future Outlook

The total budget for social grants in 2025/26 is set at R284.8 billion. While this allocation supports the increases and SRD extension, the government has scrapped planned outer-year increases beyond 2025/26, saving R6.6 billion over three years.

Looking ahead, the social grants budget is projected to reduce to R260 billion in 2026/27, primarily due to adjustments in the SRD grant funding. However, ‘core’ grants such as old age and disability grants are expected to remain stable or continue receiving inflation-related increases.

Impact

The increases and SRD extension will provide vital financial support to millions of residents, helping to alleviate poverty and support household incomes. The government’s focus on linking the SRD grant to employment opportunities is particularly relevant in Gauteng, where unemployment remains a challenge. By integrating relief with job-seeker programmes, the government aims to empower beneficiaries to transition towards sustainable livelihoods.

Budget 3.0 delivers meaningful relief to social grant recipients in Gauteng and across South Africa. The confirmed increases to core grants ensure vulnerable groups receive better support amid rising living costs. Meanwhile, the SRD grant extension provides continued assistance to those still struggling post-pandemic.

Importantly, the government’s commitment to linking social relief with employment pathways signals a strategic shift towards long-term economic empowerment. Gauteng residents can expect not only immediate financial relief but also opportunities to build better futures.

Overall, the budget balances fiscal responsibility with social support, reflecting the government’s dual goals of protecting vulnerable citizens and fostering economic recovery.