SASSA readies September grant disbursements, scrutiny to heighten
In September 2025, the Master Services Agreement between the South African Social Security Agency (SASSA) and PostBank will come to an end, affecting over 2 million beneficiaries who currently receive their social grants through PostBank accounts.
Despite this upcoming change, both SASSA and PostBank have assured beneficiaries that there will be no interruptions or delays in grant payments. Recipients can continue using their current SASSA gold cards and PostBank black cards at least until the agreement expires.
Key implications for beneficiaries include:
- Contract Termination: SASSA has confirmed it will not renew the contract with PostBank after 30 September 2025.
- Continuity of Payments: Both SASSA and PostBank pledge that grant payments will be made on time, and beneficiaries should not experience disruptions during the transition period leading up to and at the contract’s end.
- Future Payment Arrangements: Currently, there is uncertainty about the next payment service provider as SASSA has not yet transitioned to the national payment system nor appointed a new reliable service provider, which could pose challenges if not resolved soon.
- Beneficiary Action: Beneficiaries are encouraged to update their information, stay informed of official announcements, and prepare for possible changes in payment channels after the PostBank contract ends.
In addition to the contract termination, reviews are intensifying to ensure beneficiaries remain eligible for their grants. About 210,000 beneficiaries have been flagged for potential non-disclosure of additional income. Beneficiaries under review must pay attention to their annual income threshold to continue receiving grants.
Moreover, Themba Matlou, SASSA CEO, stated that grants will be lapsed for individuals who fail to respond to review requests or update their personal details. In Mahikeng, North West province, 69 recipients were disqualified due to undeclared income.
It's worth noting that the intention of the grant review process is not punitive but to ensure grants go to the relevant individuals. The Old Age Grant, Disability Grant, and War veterans grant all amount to R2315, and their respective payments will be made on Tuesday, September 2, Wednesday, September 3, and Thursday, September 4.
However, a Public Protector report suggests that SASSA has not yet made the changes needed to join the national payment system or to choose a new reliable company to handle grant payments. This could potentially lead to payment issues for beneficiaries.
In conclusion, while the PostBank-SASSA contract ending in September 2025 raises concerns about the future payment process for millions of beneficiaries, SASSA and PostBank are working to ensure payments continue uninterrupted through the contract expiration. Beneficiaries should remain vigilant for updates on the post-September 2025 payment mechanisms.
[1] SASSA and PostBank assure no grant payment disruptions: https://www.sabcnews.com/sabcnews/amp/14270121/sassa-and-postbank-assure-no-grant-payment-disruptions [2] SASSA to end contract with PostBank: https://www.sowetanlive.co.za/news/south-africa/2023-04-17-sassa-to-end-contract-with-postbank/ [3] SASSA and PostBank confirm no grant payment interruptions: https://www.iol.co.za/south-africa/sassa-postbank-confirm-no-grant-payment-interruptions-d673f74c-4e19-476c-8986-7a8b1d8a909e [4] SASSA urges beneficiaries to update their details as contract with PostBank nears end: https://www.news24.com/news24/southafrica/news/sassa-urges-beneficiaries-to-update-their-details-as-contract-with-postbank-nears-end-20230417
- Delays or interruptions in grant payments, promised by both SASSA and PostBank, are not expected to occur due to the approaching termination of their Master Services Agreement, as beneficiaries can continue using their SASSA gold cards and PostBank black cards until the agreement ends.
- Simultaneously, the South African Social Security Agency (SASSA) is in the process of reviewing beneficiaries to ensure their continued eligibility for grants, as around 210,000 recipients have been flagged for potential non-disclosure of additional income.
- In the aftermath of the PostBank contract termination on September 30, 2025, it's imperative for beneficiaries to stay informed of any updates regarding the new payment mechanisms that will be implemented, as uncertainty surrounds the selection of the next payment service provider.
