Godongwana eyes social grant changes for South Africa

The government is considering implementing a job seeker allowance and other measures alongside the social relief of distress (SRD) grant, which has been extended for another year.

Finance Minister Enoch Godongwana presented the National Treasury’s third attempt at the 2025 Budget on Wednesday, 21 May.

After the first two budgets were rejected, the National Treasury had to go back to the drawing board and devise alternative ways to raise additional government revenue.

The third version of South Africa’s 2025 Budget saw the Treasury withdraw its controversial proposal to increase the value-added tax (VAT) rate.

Instead, this revenue will now be raised through several measures, including an increase in the general fuel levy and no adjustments to personal income tax brackets or rebates.

In its new Budget, the Treasury also proposed changes to South Africa’s social grants for the 2025/26 fiscal year.

In the March 2025 Budget, the Treasury included additions to social grants designed to mitigate the impact of the proposed VAT rate increase. However, in the May Budget, these additions have been removed.

The social wage accounts for 61% of total non-interest spending over the medium term and is projected to reach R1.3 trillion in 2025/26.

The SRD grant constitutes R35.17 billion of this total. This grant was introduced as a temporary measure to provide relief to struggling households during the Covid-19 pandemic.

Despite still being considered temporary, this monthly grant has been extended yearly since its introduction. In 2024, it was also increased from R350 to R370 a month.

In the May Budget, Godongwana confirmed that the grant would be extended for another year, until March 2026.

He also said the government is actively exploring various options to better integrate this grant with employment opportunities.

“This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes,” he said.

“Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families.”

The minister did not share further details about the Treasury’s plans or what this job-seeker allowance would entail.