WHY some SASSA pensioners get R1730 instead of R2400

We’re receiving regular messages from SASSA pensioners about the status of their payouts. One such reader is Davemarie, who asked The South African why his SASSA payment was R1 730 and not the full R2 400 we report on monthly.

He investigated his bank statements and reported that the R670 gap was not due to illegal deductions, like many would expect. Then it got interesting, because the reader confirmed that a SASSA employee in Bethlehem had set the amount for him. First at just over R1 500, then an increase to R1 730. So, what’s going on?

WHY SOME SASSA PENSIONERS ONLY GET R1730

There is, in fact, a sliding scale built into the rules for SASSA pensioners that few beneficiaries know about. The South African Social Security Agency Old-Age Grant isn’t necessarily a flat payment of R2 400 (60 to 74). The regulations use a formula:

D = 1.6A − 0.4B.

D is the annual grant payable, A is the maximum annual grant (R28 800 or R2 400 a month), and B is your annual income.

WHAT THIS MEANS FOR SASSA PENSIONERS

Therefore, in the assessment test for Old-Age Grants, if your assessed income is under about R3 600 a month (R43 200 a year) for a single person, you get the full R2 400. However, the grant falls by 40 cents for every extra rand of income you are above that. Very few people know this about the grant system.

So, Davemarie’s story is totally legitimate, based on his likely income. Reversing the formula, R1 730 a month points to an assessed income of about R5 275 a month, or R63 300 a year. Against the previous grant amount, and you get his reported figure of ‘just over R1 500.’ The R85 increase this year for SASSA pensioners raised the grant by 1.6 times, or R136, which gets you to R1 730. Voila, both figures match.

WHAT COUNTS AS INCOME TO SASSA?

As ever, much of the controversy sits around what the agency counts as income. Currently, it’s salaries, private pensions, rental income, annuities, interest and maintenance payments. If you find yourself in a similar situation to Davemarie, what can you do?

• Contact SASSA and ask for a confirmed calculation. The amount should come from the formula, not an official’s discretion. Get and keep a written breakdown showing the income formula used.
• Dispute it if it’s wrong. Request a reconsideration, and if that fails, file an appeal HERE.
• Call 0800 601 011 if you’re struggling.

THE TAKEAWAY FOR SASSA PENSIONERS

Ultimately, SASSA pensioners with some form of private income can still receive a reduced grant without being in the wrong. And as explained, any increase to the full amount is scaled the same way to theirs, in this case, 1.6 times of the full amount.

But what do you think? Do you receive a scaled-down version as a SASSA pensioner? If so, how much and was it made clear to you by the agency? Please share your thoughts in the comments section below …