SASSA explains why some pensioners get less than R2 400

Thousands of South African pensioners may be surprised to discover that they do not all qualify for the same Old-Age Grant payment, even when they receive assistance from the South African Social Security Agency (SASSA), ***Cape {town} Etc ***reports.

While the maximum monthly grant for beneficiaries aged between 60 and 74 is R2 400, some pensioners receive considerably less. In certain cases, a payment of R1 730 is not the result of fraud, unauthorised deductions or a mistake, but rather an income-based calculation built into the social grant system.

The difference reportedly comes down to how much additional income a beneficiary receives and how SASSA applies its assessment rules.

Why SASSA reduces some pension payments

Reportedly, under Regulation 20 of the 2022 social assistance regulations, the Old-Age Grant is calculated using a sliding-scale formula that takes a beneficiary’s income into account.

The formula is D = 1.6A – 0.4B, with the final amount capped at the maximum grant.

In simple terms, pensioners who fall below the relevant income threshold can receive the full R2 400 monthly payment. Once their assessed income exceeds that threshold, their grant is reduced by 40 cents for every additional rand earned.

For a single person, an income of approximately R3 600 a month or less can qualify them for the full grant, while higher earnings may result in a smaller payment. This means that two pensioners receiving the same government assistance can end up with different monthly payouts, depending on their financial circumstances.

What income does SASSA consider?

The assessment is not limited to money earned through employment. SASSA considers several other sources of income when determining how much a beneficiary should receive.

These can include:

• Salaries and wages.
• Private pensions and company pension payments.
• Rental income.
• Interest earned on investments or savings.
• Maintenance payments.
• Profits from business activities.

The agency can also verify financial information against bank records, tax information and other government databases as part of its eligibility checks.

However, certain deductions are permitted when calculating assessable income. These include qualifying pension fund contributions, income tax, medical scheme contributions and UIF payments, subject to the applicable rules and limits.

This is particularly important for older people who rely on a combination of a government grant and smaller private income sources to cover their monthly expenses.

What to do if your SASSA payment seems wrong

Although reduced payments can be legitimate, beneficiaries should not simply accept an amount they do not understand. If your Old-Age Grant is lower than expected, ask your nearest SASSA office for a written breakdown explaining how your payment was calculated.

Check that the income information used in the assessment is accurate and up to date. If SASSA has included money you no longer receive or used incorrect financial details, you can request a formal reconsideration. If the matter remains unresolved, you can escalate the dispute through the Independent Tribunal for Social Assistance Appeals.

SASSA also has a toll-free helpline on 0800 60 10 11 for beneficiaries who need assistance.

Why pensioners should understand the calculation

For older South Africans already struggling with food, transport, electricity and healthcare costs, even a few hundred rand can make a significant difference. The R2 400 maximum payment is not necessarily what every qualifying pensioner will receive. The sliding-scale system means that people with additional income may still qualify for financial assistance, but at a reduced rate.

Understanding the calculation can help beneficiaries distinguish between a legitimate adjustment and an administrative error that needs to be challenged. The most important step is to get SASSA to explain exactly how it arrived at your monthly payment rather than assuming that every amount below R2 400 is an unauthorised deduction.

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**Picture: **Fausto Ferreira / Pexels

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