Universal Basic Income – In a major policy shift that could redefine South Africa’s social welfare landscape, the government has officially confirmed the rollout of the Universal Basic Income (UBI) starting September 2025. This announcement comes amid growing speculation that the much-relied-upon Social Relief of Distress (SRD) R370 grant might be discontinued or phased out. For millions of vulnerable South Africans, this news brings both hope and confusion—will they lose their current benefits, or is UBI set to offer more security and stability? Since its inception during the COVID-19 pandemic, the SRD grant has supported millions who were left jobless or under severe economic stress. However, as the government shifts towards a more permanent and inclusive income support mechanism, questions arise: Who qualifies for UBI? What happens to existing SRD grant recipients? And how will the new system be implemented? This article will unpack all the important updates, eligibility details, income thresholds, payment plans, timelines, and what this transition means for beneficiaries—whether you’re receiving the SRD, a pension, disability, or child support grant. Let’s walk you through what to expect, what to prepare for, and how to make sure you continue receiving the financial support you deserve.
What Is Universal Basic Income and Why Is It Replacing SRD?
The Universal Basic Income (UBI) is a long-term social protection plan aimed at replacing short-term relief efforts like the SRD grant. It provides a fixed monthly income to all eligible individuals, regardless of employment status.
- UBI is designed to be permanent, unlike the temporary SRD grant.
- Payments will be made monthly, starting September 2025.
- The proposed amount ranges from R750 to R1,200 per person.
- It aims to cover unemployed adults aged 18–59 with no or low income.
- Will include more vulnerable categories beyond those who qualified for SRD.
Major Differences Between SRD and UBI
Here is a table comparing the key features of the current SRD grant and the upcoming UBI:
| Feature | SRD R370 Grant | Universal Basic Income (UBI) |
|---|---|---|
| Duration | Temporary (COVID-19 measure) | Permanent |
| Start Date | May 2020 | September 2025 |
| Monthly Amount | R370 | R750–R1,200 |
| Eligibility Age | 18–59 | 18–59 |
| Income Threshold | Less than R624/month | Less than R1,500/month |
| Employment Status Required | Unemployed | Employed or unemployed |
| Means Test | Yes | Yes (updated for inflation) |
| SASSA Involvement | Yes | Yes |
Who Will Qualify for UBI in September 2025?
Many current SRD recipients are asking: will I still get financial support under UBI? The answer depends on updated eligibility criteria and verification processes.
- South African citizens or permanent residents only
- Aged 18 to 59 years old
- Not receiving any other major social grant (except Child Support Grant)
- Earning below the new income threshold of R1,500/month
- Bank account must be active and not show high-value transactions
- Must not be employed in a full-time government job
Important Documentation Required
To transition from SRD to UBI, or to apply for UBI for the first time, beneficiaries will need to provide the following documents:
- Valid South African ID
- Bank statement for the last 3 months
- Proof of residence (not older than 3 months)
- Cellphone number linked to your application
- UIF or SARS status (if available)
How Much Will You Receive Monthly Under UBI?
The Department of Social Development has proposed a flexible payout plan under UBI, based on income brackets and vulnerability level.
Here is a breakdown of expected payments:
| Monthly Income Level | UBI Amount (Estimated) | Frequency |
|---|---|---|
| No income | R1,200 | Monthly |
| R1 – R500 | R1,000 | Monthly |
| R501 – R1,000 | R850 | Monthly |
| R1,001 – R1,500 | R750 | Monthly |
| Over R1,500 | Not eligible | – |
| Students (unfunded) | R850 | Monthly |
| Informal workers (low income) | R800 | Monthly |
Transition Timeline: SRD Ends, UBI Begins
The SRD grant will not be discontinued immediately in August. Instead, there will be a transitional phase during which eligible recipients will be moved to the UBI system.
Key Dates to Remember
- August 15, 2025 – Final batch of SRD R370 payments
- August 25 – September 5 – SMS and email alerts to SRD recipients
- September 1, 2025 – Online UBI application system goes live
- September 10–20, 2025 – Verification of bank and ID details
- September 26, 2025 – First UBI payments begin
Hurdles and Challenges to Watch Out For
As with any major government rollout, there are expected issues that could delay or disrupt payments:
Common Issues You Might Face
- Delay in verification due to incorrect bank info
- Overlapping grants leading to automatic disqualification
- No SMS received due to outdated contact details
- Low digital literacy among rural populations
- Application errors due to missing documents
Departmental Contact Details for Help
If you’re unsure about your SRD-to-UBI transition status or need assistance with your application, use the following contact information:
| Department | Contact Number | Email Address | Operating Hours |
|---|---|---|---|
| SASSA National Helpline | 0800 60 10 11 | srd@sassa.gov.za | Mon–Fri, 8 AM to 4 PM |
| Department of Social Dev. | 012 312 7727 | info@dsd.gov.za | Mon–Fri, 8 AM to 4 PM |
| SRD Transition Hotline | 0860 111 123 | transition@sassa.gov.za | Mon–Fri, 9 AM to 3 PM |
| Regional SASSA Offices | Varies by province | Visit: www.sassa.gov.za/contact | Business hours |
With the SRD ending and UBI beginning, it’s vital that beneficiaries stay updated, complete all required steps, and avoid missing key deadlines. The Universal Basic Income rollout marks a monumental shift in how the government supports its citizens—and knowing how to navigate this transition is the first step to securing your financial future.
Frequently Asked Questions (FAQs)
1. Will the SRD grant end permanently?
Yes, the SRD R370 grant will be phased out starting in August 2025 and replaced by the Universal Basic Income.
2. Do I need to reapply for UBI if I already receive SRD?
Yes, all beneficiaries will need to confirm their details and complete a new application online.
3. How long will UBI payments continue?
UBI is a permanent social protection plan, not limited to emergency conditions.
4. What if I miss the application deadline?
You can still apply later, but payment delays are likely. Apply as early as possible.
5. Can I get both UBI and another social grant?
Generally, UBI cannot be combined with other major grants like the old-age pension, but exceptions may apply.
