Sassa assures beneficiaries of uninterrupted social grant payments

The South African Social Security Agency (Sassa) has moved to calm fears following reports that its partnership with Postbank has come to an end, stressing that there will be no disruption to social grant payments.

This follows an article published by City Press on Sunday, 31 August 2025, under the headline “Banks circle R3bn prize as SASSA ends partnership with Postbank.” According to Sassa, the report is misleading and has caused unnecessary panic among beneficiaries.

Sassa explained that its agreement with Postbank was contractual, like any other commercial contract, and contained a termination clause that could be exercised by either party. The agency said that the termination of the Master Services Agreement does not mean beneficiaries are being removed from Postbank.

Postbank currently serves around three million Sassa beneficiaries as account holders, and those clients can continue to receive their social grants through Postbank if they wish. Regulation 23(a) of the Social Assistance Act also guarantees beneficiaries the right to choose any bank for their grant payments.

Sassa CEO Themba Matlou described the media report as a “deliberate distortion of facts” and emphasised that the agency’s priority remains ensuring stability and fairness.

“We have consistently stated that the Master Services Agreement that we had with Postbank no longer served any purpose; we therefore had to terminate it. However, this doesn’t mean that we are taking our beneficiaries away from Postbank; they will continue if they are happy with the service,” Matlou said.

He further explained that it would be unfair for Sassa to continue subsidising only Postbank clients while beneficiaries using private banks carry their own costs. The special dispensation account, under which Sassa subsidised Postbank clients, has been repealed by legislation.

“A significant number of beneficiaries have opted to use private banks to receive their grants. To continue subsidising one group while excluding the rest amounts to unfair discrimination. Our focus right now is ensuring that all beneficiaries are treated fairly and without bias, regardless of which bank they chose,” Matlou added.

Sassa reaffirmed that all eligible grant recipients will continue receiving their payments seamlessly every month. The agency stressed that it does not favour any bank, leaving the decision entirely in the hands of beneficiaries.