The South African Social Security Agency (SASSA) has reiterated that social grant payments will continue as normal following the end of its Master Services Agreement with Postbank. In a media statement dated 1 September 2025, SASSA said there will be “no disruption of social grants,” adding that the decision to terminate the agreement was a contractual matter and not an attempt to favour commercial banks.
Moreover, SASSA explained that the relationship with Postbank is governed by a standard contract with a termination clause that either party may invoke.
The agency stressed that beneficiaries remain free to choose which bank account they use for their grants under Regulation 23(a) of the Social Assistance Regulations.
SASSA also noted that about three million beneficiaries currently hold Postbank accounts and can continue to receive their grants through Postbank if they wish. (Click here to read the full statement from SASSA)
Chief Executive Themba Matlou said reports suggesting an orchestrated shift away from Postbank are a distortion of facts and risk causing unnecessary panic.
He further emphasised that while the agreement “no longer served any purpose” and was terminated, beneficiaries who are satisfied with Postbank “will continue” using it. The agency further argued that continuing to subsidise bank charges solely for Postbank clients would be unfair now that the special dispensation has been repealed; SASSA cannot prefer one bank over another and must treat all beneficiaries equally.
SASSA has separately confirmed a R10 increase to core grants from October 2025. For example, Old Age and Disability grants move from R2 310 to R2 320, while Old Age 75+ and War Veterans increase from R2 330 to R2 340. Care Dependency rises from R2 310 to R2 320.
Furthermore, the agency’s published 2025/26 payment calendar remains in effect, and beneficiaries are encouraged to use official channels for dates and updates.
Bottom line: SASSA says payments will continue without interruption, beneficiaries may keep using Postbank or any bank of their choice under the regulations, and an increase applies from October 2025.
We hope this places our various readers minds at easy who depend on this income source.
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FAQs
No. SASSA states there will be no disruption to social grants and payments will continue as scheduled.
Yes. SASSA confirms beneficiaries with Postbank accounts can continue receiving their grants through Postbank if they wish.
No. Under Regulation 23(a) of the Social Assistance Regulations, beneficiaries may choose the bank account into which their grant is paid.
No. SASSA says the decision was a contractual matter governed by a standard termination clause and is not intended to benefit any particular bank.
No. SASSA notes the special Postbank-specific subsidy has been repealed and says all beneficiaries must be treated equally, without favouring one bank.
No action is required if you’re satisfied with your current payment setup. For updates and payment dates, follow SASSA’s official channels.
Yes. SASSA has confirmed a modest R10 increase to core grants from October 2025.
