Sassa warns against unlawful deductions from social grants

The South African Social Security Agency (Sassa) has sounded the alarm over an increase in reports of social grant beneficiaries losing part of their payments to what appears to be unauthorised deductions by financial service providers.

According to the Agency, many recipients have complained that insurance premiums are being taken from their grants without their knowledge or approval. Some have even believed that SASSA is working with these companies, a claim the Agency strongly denies.

Chief Executive Officer Themba Matlou stressed that Sassa has no legal authority to deduct money from a beneficiary’s grant without their consent. “We respect our clients and the legislation that governs social assistance. Your grant is yours, and we cannot dictate how you spend it. We will never do anything to take away from what is rightfully yours,” he said.

Matlou also made it clear that Sassa does not and will not collaborate with funeral or insurance companies unless permitted by law. He urged affected beneficiaries to visit their nearest Sassa office to lodge a complaint so the matter can be investigated.

Beneficiaries who dispute having signed up for a funeral policy can send an sms to 34548 with their Identity number and the name of the financial services provider. They are also advised to contact the insurer directly to cancel the policy.

Regulation 29 of the Social Assistance Act of 2004 permits one funeral policy deduction per month, subject to a 10 per cent limit of the grant amount, provided the beneficiary has given explicit consent. The policy must also be issued by a registered insurer under the Long-term Insurance Act of 1998.

The Agency reminded recipients that funeral policy deductions are not permitted from grants related to children, such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant. Temporary Disability Grants are also exempt from such deductions.

For more information, beneficiaries can visit www.sassa.gov.za, call 0800 60 10 11, or email GrantEnquiries@sassa.gov.za