SASSA Basic Income Grant | What is it? How it works?

The South African Social Security Agency (SASSA) Basic Income Grant (BIG) is a proposed social assistance program that is particularly designed to provide regular cash payments to eligible individuals who are in need.

With South Africa’s economy facing difficulty worsened by a significant rise in unemployment, the government needs to urgently review its social welfare programs. More and more people are falling into poverty and losing their jobs, highlighting the need for action.

Numerous voices have advocated for the establishment of a Basic Income Grant. This guide will explore in detail what the South African Social Security Agency (SASSA) Basic Income Grant is (BIG), its eligibility requirements, and other facts related to this initiative. Therefore, continue reading to enlighten yourself and gain a comprehensive understanding of the SASSA Basic Income Grant application.

Funding the Basic Income Grant (BIG)

There is a significant discussion and disagreement among government officials regarding the possibility of implementing a Basic Income Grant (BIG) through the South African Social Security Agency (SASSA) in the year 2024.

On one hand, the National Treasury argues that implementing the SASSA Basic Income Grant will not be viable. Considering the current array of SASSA grants and declining annual tax revenue, the associated cost will simply be too high.

Meanwhile, civil society argues that the government has made many South African citizens rely on grants because they don’t have any other income and desperately need help. According to recent data, approximately 27.3 million South Africans are receiving social grants while only 7.1million taxpayers are shouldering the financial burden of funding these grants. So, how could the ANC finance the Basic Income Grant?

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According to a report by Business Tech, the Institute for Economic Justice (IEJ) suggests that raising taxes on well-off South Africans would generate enough revenue. They argue that a Basic Income Grant (BIG) could lift millions of South Africans out of poverty and increase GDP growth by 2.2%.

So, what is this Basic Income Grant (BIG)? How it works?

Understanding Basic Income Grant

The Basic Income Grant (BIG) is a unique type of social assistance. Unlike other social grants such as children, disability, or elderly grants, the Basic Income Grant (BIG) aims to offer a consistent income to individuals who can’t find jobs or earn enough money.

This social initiative is a form of support for those facing challenges in securing employment due to structural unemployment, similar to how elderly individuals can’t work because of their age.

In both cases, there is a structural barrier preventing this group from earning income. In the 2000s civil society proposed the Basic Income Grant to alleviate poverty, reduce inequality, and provide a basic level of financial support to those who are unable to meet their basic needs. The implementation of the Basic Income Grant has been a subject of debate and discussion in South Africa for many years.

Who Qualifies for a Basic Income Grant?

Now, the main concern is who is eligible for the SASSA Basic Income Grant (BIG). According to IEJ, the South African Social Security Service (SASSA) Basic Income Grants will be accessible to eligible South Africans aged 18 to 59. It will be set at R1,417 per month, the upper limit of the poverty line.

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Additionally, it wouldn’t affect those already receiving other adult grants like Child Dpedency, War Veteran, Social Relief of Distress, and more. The IEJ suggests that implementing a mere 1% wealth tax on the nation’s highest earners could generate R70 billion, sufficient to finance the Basic Income Grant. Alternatively, another option is a 2.5% Social Security Tax deducted from each worker’s monthly paycheck.

A third possibility for funding the SASSA Basic Income Grant (BIG) is through raising Value Added Tax (VAT) at the point of sale. Alternatively, a combination of all three methods could also be considered. But the IEJ warns that this mirrors the ANC plan to fund its controversial National Healthcare Insurance (NHI) scheme.

Implementing all these measures simultaneously could strain South Africa’s limited tax base. However, Godongwana mentioned that with proper management of spending across various social welfare programs, affording a Basic Income Grant could be feasible for the government. Additionally, the Basic Income Grant could replace the SASSA SRD R350 and be accessible to all South Africans who meet the eligibility criteria.

In conclusion, the South African government initiated the Basic Income Grant (BIG) program in the hopes of alleviating poverty, reducing inequality, and providing a basic level of support to those who are unable to satisfy their basic requirements.

The SASSA Basic Income Grant (BIG) would provide a fixed amount of money to eligible individuals on a regular basis, typically monthly. The implementation of this program has sparked debates among government officials for many years.

Advocates argue that it will help reduce poverty and protect people, but critics worry about cost, impact on work, and how it would be put in place. One thing is sure getting the SASSA Basic Income Grant (BIG) could greatly improve the lives of those who qualify, as well as their families.