SASSA speaks on unlawful deductions on social grants… what affected beneficiaries should do

The South African Social Security Agency (SASSA) has expressed deep concern over a growing trend of unlawful deductions from social grants by certain financial service providers. Beneficiaries have reported that various insurance companies are deducting funds from their grants without their consent, creating confusion about SASSA’s involvement.

SASSA has clarified that it does not partner with insurance companies or funeral schemes to deduct funds from beneficiaries’ grants. CEO Themba Matlou stressed that the Agency has no authority to make any deductions without the beneficiary’s explicit consent.

“We have utmost respect for our beneficiaries and the Act governing social assistance in the country, and we will never do anything to shortchange our clients. Your money is your money. If you qualify for a grant, the money belongs to you, and SASSA has no right, nor authority, to dictate how you utilize it,” Matlou stated.

Beneficiaries affected by unauthorized deductions are urged to report the matter immediately at their nearest SASSA office for investigation. Alternatively, those disputing a funeral policy can send an SMS to 34548 with their Identity number and the financial service provider’s name. They should also approach the insurer directly to cancel the policy.

According to Regulation 29 of the Social Assistance Act of 2004, SASSA may allow only one deduction per month, not exceeding 10% of the beneficiary’s grant, for a funeral policy issued by an insurer registered under the Long-term Insurance Act of 1998. Consent must be provided by the beneficiary via electronic communication or other approved means.

It is important to note that funeral deductions are not permitted from child-related grants, including the Child Support Grant, Care Dependency Grant, Foster Child Grant, or Temporary Disability Grant.

[MEDIA STATEMENT]

SASSA CONCERNED ABOUT COMPLAINTS OF UNLAWFUL DEDUCTIONS ON SOCIAL GRANTS pic.twitter.com/BVoChsOzcN

— SASSA (@OfficialSASSA) August 14, 2025

Read SASSA’s statement in full:

The South African Social Security Agency (SASSA) is deeply concerned by the upsurge in what appears to be unlawful deductions by financial service providers targeting social grants beneficiaries.

SASSA has been inundated with enquiries from its beneficiaries, stating that their grant money is consistently being deducted by various insurance companies that they have not signed up for, believing that the Agency is working with these companies.

SASSA has consistently distanced itself from any insurance company that uses the good name of the Agency to achieve its goals. CEO Themba Matlou has reiterated that SASSA has no authority to make any deductions on social grants without the consent of the beneficiaries.

“We have utmost respect for our beneficiaries and the Act governing social assistance in the country and we will never do anything to shortchange our clients. Your money is your money, if you qualify for a grant, the money belongs to you and as SASSA we have no right, nor authority to dictate how you utilize it,” he emphasized.

The CEO is on record emphasizing that not at any point will SASSA work with funeral schemes and insurance companies as it is not legislated, urging all beneficiaries who have fallen victim to immediately visit the SASSA local office to report the matter for investigation.

Alternatively, clients who dispute signing a funeral policy with the financial services provider are advised to immediately dispute the deduction by sending a SMS to 34548 with their Identity number and the financial services provider’s name. They should also visit the insurer or the financial services provider to cancel the policy.

In line with Regulation 29 of Social Assistance Act of 2004, the Agency may allow only one deduction per month not exceeding 10 per cent of the value of the beneficiary’s social grant for a funeral policy issued by an insurer registered under the Long-term Insurance Act, 1998 (Act No. 52 of 1998) to be made directly from a social grant. The Regulation says the beneficiary of the social grant must consent to such deduction by electronic communication or any other means of communication and has submitted such consent by electronic communication or any other means of communication to the Agency.

It is important to emphasize that funeral deductions are not permitted from child-related grants, such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant. Similarly, Temporary Disability Grant, are excluded from funeral deductions altogether.

For more information, visit www.sassa.gov.za or call our toll-free number: 0800 60 10 11 or [email protected].

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Issued by the South African Social Security Agency

For more information, contact SASSA Spokesperson Mr. Paseka Letsatsi on 082 883 9969 or [email protected]