Money Desk
Why the SASSA Old-Age Grant May Be Less Than R2 400
Learn why SASSA Old-Age Grant payments may be less than R2 400 due to a means-tested sliding scale based on your assessed annual income.
SASSA’s standard Old-Age Grant is R2 400 per month for beneficiaries aged 60 to 74.
How the Sliding Scale Works
The annual amount payable is calculated using the formula D = 1.6A − 0.4B. In the formula, D is the annual grant payable, A is the maximum annual grant and B is the beneficiary’s assessed annual income.
| Measure | Amount |
|---|---|
| Maximum monthly grant | R2 400 |
| Maximum annual grant | R28 800 |
| Full-grant income threshold per month | R3 600 |
| Full-grant income threshold per year | R43 200 |
| Reduction above the threshold | 40 cents per R1 |
Beneficiaries assessed as earning less than R3 600 a month, equivalent to R43 200 a year, receive the full grant. At the annual threshold, applying the formula gives an annual payment of R28 800, or R2 400 a month.
Above that threshold, the payment falls by 40 cents for each additional rand of assessed income. The reduction applies proportionately: each R1 of monthly income above R3 600 reduces the monthly grant by 40 cents. As assessed income rises, the amount payable therefore moves below the maximum even though the person remains eligible for a grant.
Explaining a R1 730 Payment
A reader’s reported payment of R1 730 is consistent with assessed monthly income of approximately R5 275 under SASSA’s sliding-scale calculation. The lower payment reflects the means-test calculation for that beneficiary rather than a change to the maximum Old-Age Grant.
Assessed income of R5 275 a month is R1 675 above the R3 600 monthly threshold for receiving the full grant. Applying the reduction of 40 cents for every R1 above that threshold produces a monthly reduction of R670. Subtracting R670 from the maximum monthly grant of R2 400 gives the reported payment of R1 730.
For a household, the calculation means the amount deposited each month can be below the maximum even when the beneficiary remains eligible for assistance. The payment depends on the income recorded in the means test, and the R1 730 amount corresponds to the approximately R5 275 monthly assessment.
SASSA includes several sources when assessing income. These are salaries, private pensions, rental income, annuities, interest and maintenance payments. Income from any of these sources can therefore affect the amount payable under the sliding scale.
Beneficiaries who want assistance understanding their grant calculation can contact the SASSA helpline on 0800 601 011. The helpline can assist with questions about how the means test and grant calculation apply to a beneficiary’s assessed income.
