More and more SASSA beneficiaries are raising complaints about money disappearing from their monthly grants due to unlawful deductions they never agreed to. In most cases, these amounts are linked to funeral policies or services that beneficiaries say they never signed up for.
SASSA has made it clear that it does not work with insurance companies to deduct money and is calling on beneficiaries to report these unlawful practices immediately.
SASSA Warns Against Unlawful Grant Deductions
The South African Social Security Agency (SASSA) has raised alarm over a growing number of unauthorised deductions from social grant payments. Many beneficiaries have complained that money is being taken from their grants for insurance policies they never agreed to.
SASSA CEO Themba Matlou said, these financial service providers are not connected to the agency in any way. “We respect our beneficiaries and the Social Assistance Act that governs us. We will never take part in practices that reduce your grant unfairly,”.
Rising Complaints From Beneficiaries
Reports show that beneficiaries are losing portions of their monthly grants to funeral policies or other insurance deductions. What makes the situation worse is that many of these recipients did not sign up for the policies at all.
SASSA has confirmed that it is not linked to any insurance companies making such deductions and urged beneficiaries to take immediate action if they notice any irregularities.
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What the Law Allows
Under Regulation 29 of the Social Assistance Act (2004):
- Only one deduction per month is permitted.
- This deduction can only be for a funeral policy, and it cannot exceed 10% of your grant.
- The beneficiary must give clear consent either in writing or electronically.
Important to note: Child-related grants (Child Support Grant, Foster Child Grant, Care Dependency Grant) and the Temporary Disability Grant are protected. No deductions for funeral policies are allowed on these grants.
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SASSA’s Commitment
SASSA has strongly emphasised that it does not partner with any financial service providers for deductions. The agency says it will continue working to safeguard beneficiaries against unfair or unlawful practices.
“Your money is your money. If you qualify for a grant, it belongs to you, and no one has the right to take it without your permission,” Matlou reminded recipients.
How to Report Illegal Deductions
If you see unexplained deductions on your grant, you can:
- Report it at your nearest SASSA office for investigation.
- Send an SMS to 34548 with your ID number and the name of the service provider or insurer.
- Contact the insurer directly to cancel the policy if you never agreed to it.
SASSA is encouraging all beneficiaries to check their bank statements regularly and act quickly if they suspect any foul play.
