Is a Massive Grant Hike Coming in June 2025?

As South Africa grapples with economic challenges, including rising inflation and a proposed increase in Value-Added Tax (VAT), the government’s social assistance programs are under scrutiny by millions of citizens. The South African Social Security Agency (SASSA) plays a significant role in supporting vulnerable populations through various grants. Beneficiaries are keenly awaiting updates on potential grant increases to alleviate the rising cost of living. This article delves into the current state of SASSA grants, the government’s plans for adjustments, and what beneficiaries can expect in the coming months.

Current SASSA Grant Increases

In the 2025 Budget Speech delivered on 12 March, Finance Minister Enoch Godongwana announced several increases to SASSA grants, effective from 1 April 2025. These adjustments aim to cushion the poor from the impact of the proposed VAT increase and rising living costs. 

The announced increases are as follows:

• Old Age Grant: Increased by R130 to R2,315 per month.
• Disability Grant: Increased by R130 to R2,315 per month.
• War Veterans Grant: Increased by R130 to R2,335 per month.
• Care Dependency Grant: Increased by R130 to R2,315 per month.
• Foster Care Grant: Increased by R70 to R1,250 per month.
• Child Support Grant: Increased by R30 to R560 per month.
• Grant-in-Aid: Increased by R30 to R560 per month.

Additionally, the Social Relief of Distress (SRD) grant, introduced during the COVID-19 pandemic, has been extended for another year until March 2026, maintaining its value at R370 per month. 

Prospects for Further Increases in June 2025

As seen in previous years, SASSA implements grant adjustments in April and October. While the April 2025 increases have been confirmed, there is speculation about potential further adjustments in October 2025. However, as of now, there is no official announcement regarding additional increases in June 2025.

The government’s budget allocation for social grants in the 2025/26 fiscal year stands at R284.7 billion, reflecting a commitment to supporting vulnerable populations. Any future increases would depend on economic conditions, inflation rates, and fiscal sustainability.

The Role of Inflation in Driving Grant Adjustments

One of the key drivers influencing SASSA grant increases is South Africa’s economic environment—particularly inflation and potential tax changes. In the 2025 Budget Speech, Finance Minister Enoch Godongwana acknowledged the rising cost of living and the government’s need to shield vulnerable households from its effects.

Impact of Inflation on Social Grants:

South Africa’s consumer price index (CPI) has been steadily increasing due to food price inflation, fuel costs, and a weakening rand. When inflation rises, the purchasing power of fixed income—such as social grants—declines. This means that even with minor annual increases, grant recipients often struggle to meet their basic needs unless the adjustments are at least in line with inflation.

Conclusion

While the April 2025 increases in SASSA grants provide some relief to beneficiaries, there is no official indication of a massive hike coming in June 2025. The government’s commitment to social assistance is evident in its budget allocations, but further increases will depend on economic conditions and fiscal considerations. Beneficiaries and stakeholders should stay informed through official channels for any updates on grant adjustments.