Government responds to call to increase pensioners' Sassa grant to R5 000
The Department of Social Development says it has found itself between a rock and a hard place on social grants.
The department appeared before Parliament's portfolio committee on social development on Wednesday to respond to calls for an increase in the pensioners' grant.
Riyad Isaac explained to the committee that the current grant amount was not enough, given the high living costs.
'Not enough'
'I do understand that pensioners are now getting R2 310, my argument that I am putting forward is that it is nowhere near enough to survive. My heart goes out to all those pensioners. Forget about the racial lines, if you are 60 or 65, remember you are the backbone of society,' said Isaac.
ALSO READ: Sassa grants will be paid out this week, but some may be left out
'When people are employed in the government service or any other entity, they might have a pension, which is lucrative.
'However, the majority of people are not that fortunate. Many people are living below the poverty line and struggling to make ends meet.
'I always encounter people asking for help. The question is, who among us is there to lend a helping hand? So I am asking, R2 300 is not nearly enough because if I look at the rates and rental they have to pay, many of them reach out for food parcels because they do not have enough.
'Our parents have brought us up, and this is how we are treating them? There is no way in hell that we can allow those pensioners to survive on that amount of money.'
ALSO READ: SASSA SRD grant to be 'converted' to basic income grant – Mbalula says [VIDEO]
Isaac said that although he understood the R5,000 requested could not be achieved currently, the government should consider adding R500 to the current amount.
'Pensioners' grant the highest of them all'
Acting chief director of the Department of Social Development Dr Maureen Mogotsi said that although the department sympathised with elderly people, it would not be feasible to pay them R5 000.
Currently, about 19 million beneficiaries receive social grants, 4.1 million are older persons, and an average of 8.5 million receive the Covid-19 SRD grant.
ALSO READ: Delay expected in Sassa grant payments for May — These are the beneficiaries affected
In 2023, the number of people aged 60 and above was estimated at 5.5 million. Of these, 59.8% were women, while 40.2% were men. The Western Cape (10.8%) had the highest percentage of older people.
About R284.7 billion was allocated to the social grants for the 2025/26 financial year.
The pensioners' grant is now R2 310 for those younger than 75 (it will increase to R2 320 in October) and R2 330 for those 75 and older (it will increase to R2 340 in October).
'It makes it difficult to argue for an increase of this particular grant because it is already the highest among all grants,' said Mogotsi.
'It exceeds the Upper Bound Poverty line. In contrast, the Child Support Grant is below the food poverty line, even though child poverty is higher than adult poverty.'
Mogotsi said if the government were to increase the pensioners' grant to R5 000 for the 4.1 million beneficiaries, it would cost the government R246 billion, which would almost double the current budget.
'Is this feasible? It makes it difficult because we are between a rock and a hard place. Even those receiving the SRD grants are below the poverty line. Who should we consider first? It's not possible for us to increase the pensioners' grants.'
READ NEXT: Sassa problems and glitches this year, will we get a basic income grant in 2025?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
6 hours ago
- TimesLIVE
July car sales hit six-year peak
Despite the looming threat of tariffs, South Africa's domestic new-vehicle market continued full throttle in July, delivering the highest monthly sales since October 2019. In the tenth straight month of increased volumes, 51,383 units were delivered last month, up 15.6% from July 2024, which industry body Naamsa attributed to improving consumer confidence, favourable credit conditions and a steady recovery in disposable incomes. It firmly re-established pre-Covid-19 levels and momentum in the market's recovery. Passenger cars were the best performing segment last month at 36,248 units, the highest since January 2017 and a gain of 20.1% compared to July 2024. Car rental sales accounted for 14% of last month's figure. Sales of new light commercial vehicles, bakkies and minibuses at 12,356 units were 6.9% higher than July 2024. Medium trucks sold 703 units (+13.9%) while heavy trucks and buses dropped 1.3% to 2,076 units. The much-welcomed decision by the Reserve Bank in July to further reduce the repo rate by 25 basis points to 7% — its third cut this year — will further inject much-needed stimulus into the economy, said Naamsa CEO Mikel Mabasa. 'Encouragingly, household credit extension has continued to improve, while consumer sentiment is rebounding — especially among middle- and upper-income groups. The implementation of pension reforms has also unlocked additional liquidity for big-ticket purchases such as vehicles. This positive trend is further reinforced by improved logistics performance, a more stable electricity supply and a sustained demand for high-spec, cost-effective vehicles across market segments,' he said. Year-to-date sales of 330,274 new vehicles this year were 13.9% up on the first seven months of 2024. 'There remains a direct correlation between the rate-cutting cycle and the upturn in new vehicle sales,' said Lebo Gaoaketse, head of marketing and communication at WesBank. 'The market should continue to expect growth if interest rates remain lower.' 'The cumulative interest rate cut of 1.25% since the cycle started is saving a typical new car buyer about R257 per month. The sweet spot of the new vehicle market is a price point of R370,000 according to WesBank's book. More critically, the interest saving over the loan period could be over R18,500, which shows the impact lower rates have on stimulating the market and aiding affordability.' Vehicle exports have shown resilience in the face of the 25% automotive tariffs imposed by the US in April. Export volumes last month decreased 1.9% to 35,379 units compared to July 2024, but year-to-date exports were still 2.5% ahead of the same period in 2024. However, the 30% tariffs imposed on South Africa from this month are expected to cause economic headwinds for some local motor manufacturers. 'Despite global uncertainty and the looming threat of tariffs, South Africa's vehicle market continues to show remarkable resilience,' said Brandon Cohen, chair of the National Automobile Dealers' Association (NADA). A key contributor to the robust passenger market is the growing influence of Chinese and Asian vehicle brands, he said. Four Chinese importers are now among the top 15 best-sellers, including newer entrants such as Omoda/Jaecoo and Jetour. 'Financial institutions have also shown confidence in these brands by offering white-labelled finance packages, further supporting their market penetration. Meanwhile, manufacturers like Kia and Mahindra continue to feature prominently in the top 10, reflecting strong demand for affordable, value-driven options, a trend that has also underpinned Suzuki's consistent success. 'The rapid rise of Chinese and Asian brands reflects a shift in buyer preferences towards affordability and value. It's a trend we expect to intensify as more brands enter the market,' said Cohen. Toyota retained its lead as South Africa's most popular brand in July. The top 15 selling brands were: 1. Toyota — 12,694 2. Suzuki — 6,257 3. Volkswagen group — 5,738 4. Hyundai — 3,161 5. Ford — 2,877 6. GWM — 2,436 7. Isuzu — 2,427 8. Chery — 2,160 9. Kia — 1,891 10. Mahindra — 1,441 11. Renault — 1,320 12. BMW group — 1,249 13. Nissan — 1,190 14. Omoda and Jaecoo- 1,069 15. Jetour — 717
Eyewitness News
6 hours ago
- Eyewitness News
US job growth weaker than expected in July as unemployment rises
WASHINGTON - US job growth missed expectations in July, government data showed Friday, while revisions to hiring figures in recent months brought them to the weakest levels since the Covid-19 pandemic. The employment numbers appear to signal risks in the key labour market in the world's biggest economy, as companies grapple with President Donald Trump's sweeping tariffs. The world's biggest economy added 73,000 jobs last month, while hiring numbers were revised significantly lower for May and June, the Labour Department said. The jobless rate nudged up from 4.1% to 4.2%. Experts have warned that private sector firms appear to be in a wait-and-see mode due to heightened uncertainty over Trump's rapidly changing trade policy. With tariff levels climbing since the start of the year, both on imports from various countries and on sector-specific products such as steel, aluminum and autos, many firms have faced higher business costs -- which some are now passing along. On Friday, the Department of Labour said hiring numbers for May were revised down from 144,000 to 19,000. The figure for June was shifted from 147,000 to 14,000. This was lower than job creation levels in recent years. During the pandemic, the economy lost jobs.
The Citizen
7 hours ago
- The Citizen
ConCourt declares appointment of 5 CGE commissioners invalid due to limited public participation
The CGE acknowledged the ruling in a brief statement on Friday. The Constitutional Court (ConCourt) has ruled that the appointments of five commissioners to the Commission for Gender Equality (CGE) are invalid, citing Parliament's failure to ensure adequate public participation in the selection process. The ruling follows a legal challenge brought by the non-profit organisation Corruption Watch. The respondents in the matter included the speaker of the National Assembly, the president, the Information Regulator, and the five CGE commissioners. ALSO READ: Reserve Bank unlawfully interfered in Absa chair appointment, says court Media Monitoring Africa was admitted as amicus curiae (friend of the court). Corruption Watch contested the appointments of CGE commissioners chairperson Nthabiseng Sepanya-Mogale, deputy chairperson Prabashni Subrayan Naidoo, Thando Gumede, Bongani Ngomane, and Leonashia Leigh-Ann Van Der Merwe, all of whom took office in March 2023. These appointments, for terms of up to five years, were made by the president upon recommendation by Parliament. CGE commissioners' appointment process challenged The nomination process was led by Parliament's Portfolio Committee on Women, Youth and Persons with Disabilities. It began in June 2022 and closed nearly a month later. A shortlist of four candidates was compiled in late August, while public comment was invited between 2 and 16 September. Submissions were to be made via an online form linked through Parliament's website. The link led to a spreadsheet listing candidates' names and qualifications, but their full CVs were not published. READ MORE: Initiation schools: Commission wants answers on why recommendations haven't been carried out Despite Corruption Watch requesting an extension of the public comment period to 30 days, the removal of the character limit on submissions, and the release of CVs, the National Assembly proceeded with its recommendations to the president following candidate interviews. The appointments were announced on 25 February 2023, and the commissioners assumed office on 1 March. Corruption Watch then brought its application before the ConCourt under section 167(4)(e) of the Constitution, which grants the court exclusive jurisdiction to determine whether the National Assembly has failed to fulfil a constitutional obligation. The organisation argued that Parliament's process was flawed due to the limited public access to information about candidates, a 2 000-character restriction on submissions, and the short 14-day window for public comment. (4/4) CCT 333/23 Corruption Watch (RF) NPC v Speaker of the National Assembly and Others August 1, 2025 The speaker defended the process, stating it was reasonable and consistent with past procedures. It was argued that the 14-day period was sufficient, that public comments were properly considered, and that CVs could not be published without candidates' consent in accordance with the Protection of Personal Information Act (Popia). However, the Information Regulator clarified in an affidavit that such consent is not required when the information is needed for the performance of public duties. ConCourt judgment In a unanimous ruling delivered on Friday, the ConCourt sided with Corruption Watch and found that the public participation process was insufficient. 'In the circumstances, the appointment process conducted by the National Assembly therefore did not comply with the obligations imposed by section 59(1)(a) of the Constitution and is therefore invalid,' the summary of the 1 August judgement reads. The declaration of invalidity has been suspended for 12 months from the date of the order, giving Parliament time to conduct a constitutionally compliant appointment process and allowing the president to make appointments. Reactions The CGE acknowledged the ruling in a brief statement on Friday. 'The commission remains committed to its legislative mandate and will continue to discharge its responsibilities while Parliament undertakes its processes. 'The commission will not make further public pronouncements or respond to media enquiries on this matter,' the statement reads. In addition, Corruption Watch welcomed the outcome. 'South African citizens have a right to participate fully in these processes, particularly where such institutions are at the forefront of ensuring justice and enforcement of human rights in the country. 'The opportunity for people to have their say in the appointment of representatives to Chapter 9 institutions like the CGE, is an important example of that process,' the organisation said in a statement. The CGE operates under section 187 of the Constitution, with a mandate to promote and protect gender equality. In March last year, six other commissioners – Seeham Samaai, Mulalo Grace Nemathaheni, Mfundo Nomvungu, Yanga Malotana, Kamohelo Rodney Teele, and Marion Lynn Stevens – were recommended by Parliament and subsequently approved by the president. NOW READ: MK party and Zuma suffer blow as ConCourt rules in Ramaphosa's favour
