SASSA Warns: Your Social Grant is Not for Insurance Companies

The South African Social Security Agency (SASSA) has issued a firm warning to social grant beneficiaries after a surge in complaints about money being taken from their grants without consent. Many say the deductions are for funeral or insurance policies they never agreed to, with some even believing SASSA is linked to these companies.

“Your money is your money”

SASSA CEO Themba Matlou has made it clear: the agency has no right to take a cent from anyone’s grant without written or electronic permission. “Your money is your money,” he stressed. “If you qualify for a grant, it belongs to you. We have no authority to dictate how you use it.”

Matlou also underlined that SASSA does not partner with funeral schemes or insurance companies, because such arrangements are not allowed under current legislation.

How to report and stop illegal deductions

Beneficiaries who notice unexplained funeral policy deductions should:

• Report the matter immediately at their nearest SASSA office

• Report the deduction through SASSA’s official SMS reporting service

• Contact the insurer directly to cancel the policy

The law on deductions

Under Regulation 29 of the Social Assistance Act of 2004, only one deduction per month is permitted, and it cannot be more than 10% of the grant’s value. It must be for a funeral policy with a registered insurer, and it must have the beneficiary’s written or electronic consent.

Importantly, funeral policy deductions are not allowed from child-related grants such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant, nor from the Temporary Disability Grant.

Why this matters

For many South Africans, social grants are the difference between surviving and going without. Even small unlawful deductions can mean skipping a meal or not buying essential medication. Community advocates have called for harsher penalties for financial service providers found exploiting vulnerable citizens.

On social media, frustration is mounting. Posts under hashtags like #HandsOffOurGrants are demanding stricter oversight, while others are sharing step-by-step guides to checking grant balances and spotting fraudulent deductions early.

SASSA’s message is simple: know your rights, guard your grant, and report anything suspicious immediately.

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Source: IOL

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