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Lentswe, Klerksdorp - SASSA has expressed concern by the upsurge in what appears to be unlawful deductions by financial service providers targeting social grants beneficiaries. SASSA has been inundated with enquiries from its beneficiaries, stating that their grant money is consistently being deducted by various insurance companies that they have not signed up for, believing that the agency is working with these companies. SASSA has consistently distanced itself from any insurance company that uses its name. CEO Themba Matlou has reiterated that SASSA has no authority to make any deductions on social grants without the consent of the beneficiaries. 

“We have utmost respect for our beneficiaries and the Act governing social assistance in the country and we will never do anything to shortchange our clients. Your money is your money, if you qualify for a grant, the money belongs to you and as SASSA we have no right, nor authority to dictate how you utilize it.”

The CEO is on record emphasizing that not at any point will SASSA work with funeral schemes and insurance companies as it is not legislated, urging all beneficiaries who have fallen victim to immediately visit the SASSA local office to report the matter for investigation. 

Alternatively, clients who dispute signing a funeral policy with the financial services provider are advised to immediately dispute the deduction by sending a SMS to 34548 with their Identity number and the financial services provider’s name. 

They should also visit the insurer or the financial services provider to cancel the policy.

In line with Regulation 29 of Social Assistance Act of 2004, the Agency may allow only one deduction per month not exceeding 10 per cent of the value of the beneficiary’s social grant for a funeral policy issued by an insurer registered under the Long-term Insurance Act, 1998 (Act No. 52 of 1998) to be made directly from a social grant. The Regulation says the beneficiary of the social grant must consent to such deduction by electronic communication or any other means of communication and has submitted such consent by electronic communication or any other means of communication to the Agency.

It is important to emphasize that funeral deductions are not permitted from child-related grants, such as the Child Support Grant, Care Dependency Grant, or Foster Child Grant. Similarly, Temporary Disability Grant, are excluded from funeral deductions altogether.

For more info, visit www.sassa.gov.

za or call our toll-free number: 0800 60 10 11 or This email address is being protected from spambots. You need JavaScript enabled to view it.