The South African Social Security Agency (SASSA) has warned beneficiaries to be on high alert after a surge in reports of money being unlawfully deducted from social grants.
Beneficiaries across the country say they are losing part of their monthly payments to funeral policies or insurance premiums they never knowingly signed up for.
SASSA has moved quickly to clarify that it has no agreements with insurers or financial service providers, and that deductions are not processed by the agency itself.
Clear Limits on Deductions
By law, deductions from social grants are heavily restricted. Under Regulation 29 of the Social Assistance Act (2004):
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Only one deduction per month is permitted.
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The deduction must not exceed 10% of the grant amount.
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It can only apply to funeral policies provided by insurers officially registered under the Long-term Insurance Act.
Certain grants — such as Child Support, Care Dependency, Foster Child, and Temporary Disability grants — are fully protected and cannot be subject to deductions under any circumstances.
CEO’s Warning
SASSA CEO, Themba Matlou, reminded beneficiaries that their grants are meant for their wellbeing.
“These funds are for you and your families. No company has the right to take even a cent without your permission,” he said.
How to Dispute or Stop Deductions
Beneficiaries who notice unexplained deductions have been urged to act quickly. SASSA advises the following steps:
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Check your grant statement each month for unauthorized charges.
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Send an SMS to 34548 with your ID number and the name of the service provider to lodge a dispute.
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Visit your nearest SASSA office for assistance and investigation.
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Contact the insurer directly to cancel any policy linked to your grant.
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Call the SASSA toll-free helpline (0800 60 10 11) for further support.
Why This Matters
For millions of households, SASSA grants are the only reliable source of income.
Advocacy groups argue that unlawful deductions rob vulnerable families of money they desperately need for food, school, and healthcare. Even small amounts deducted monthly can leave beneficiaries trapped in cycles of debt and poverty.
SASSA said it will intensify its oversight efforts and collaborate with regulators to stamp out illegal practices.
The agency is also encouraging grant recipients to spread awareness in their communities to ensure no one falls victim to fraudulent deductions.
“Every rand counts,” SASSA noted. “If you did not authorize it, report it immediately.”
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