New UBI Scheme Launches in Place of SRD – New Grant System to Replace Old Structure This Month

New UBI Scheme – The South African government has officially announced the launch of a brand-new Universal Basic Income (UBI) scheme, set to replace the long-standing Social Relief of Distress (SRD) grant system. This major transformation comes as part of the broader economic recovery and poverty alleviation agenda. With the rollout starting this month, millions of South Africans are urged to understand how this transition impacts their eligibility, payment methods, and future financial support.

What is the New UBI Scheme All About?

The new UBI scheme is designed to provide a stable monthly income to all qualifying citizens, with a shift from the temporary nature of the SRD grant to a more permanent and inclusive structure. Unlike SRD, the UBI will not be restricted to COVID-related distress and will serve as a long-term income support model.

Key Features of the New UBI Scheme:

  • Monthly payout of R1,200 per approved beneficiary
  • Broader eligibility criteria including informal workers, the unemployed, and the elderly without pensions
  • Streamlined application process using SASSA online platforms
  • Automated verification through Home Affairs and SARS databases
  • Monthly review to ensure only eligible individuals receive support

Eligibility Criteria and Application Process

To access the new UBI monthly payments, applicants must meet the updated requirements set by the government. Here’s a breakdown of what you need to know:

Eligibility Requirements:

  • South African citizen, permanent resident, or refugee
  • Aged 18 to 59 years
  • Not receiving NSFAS, UIF, or other full government-funded grants
  • Monthly income must be below R3,500
  • No recent history of fraudulent activities with government aid

Application Process:

  • Visit the official SASSA website: https://srd.sassa.gov.za/
  • Use your South African ID number and registered mobile phone
  • Upload supporting documents as requested
  • Track your status via the portal or WhatsApp support at 082 046 8553

Comparison Between SRD and UBI Grant

The following table outlines the key differences between the old SRD system and the new UBI model:

Feature SRD Grant New UBI Scheme
Monthly Amount R350 R1,200
Duration Temporary (COVID-based) Permanent/Long-term
Application Channels Online/USSD Online only (secure portal)
Eligibility Age 18–59 18–59
Payment Method Bank/Post Office Direct Bank Transfer Only
Income Threshold Below R624 Below R3,500
Verification Source Self-declaration Automated verification
Appeals Manually via email Integrated appeal system

How Will the Payments Be Made?

UBI payments will follow a more efficient digital-first approach. Applicants must submit banking details during the application, and SASSA will not process any cash payments.

Payment Guidelines:

  • Payments are made between 5th and 10th of every month
  • Only to verified bank accounts in the applicant’s name
  • SMS notification will confirm deposit status
  • Payments will reflect as “UBI SASSA Deposit”

Common Payment Issues to Avoid:

  • Bank account not in your name
  • Incorrect ID or phone number during application
  • Outdated or blacklisted banking details

Who Benefits the Most From This Shift?

UBI is expected to help:

  • Informal workers with unstable incomes
  • Job-seekers without UIF or grant access
  • Women-led households
  • Young people not in education, employment, or training (NEET)
  • Rural and township residents excluded from formal financial support

The following table shows a category-wise breakdown of potential beneficiaries:

Beneficiary Group Estimated Monthly Payout Percentage of Total UBI Pool
Informal Workers R1,200 35%
Unemployed Adults R1,200 30%
Women-Headed Households R1,200 20%
Disabled Individuals R1,200 10%
Youth (18–24) R1,200 5%

SASSA Helpline and Departmental Contact Information

For issues related to UBI application, payment status, or eligibility, contact:

SASSA National Contact Centre:

FAQs – New UBI Scheme

Q1. Can I still apply for SRD?
No, the SRD grant has been officially phased out and replaced by the UBI scheme.

Q2. What if I already received SRD last month?
Your record may be transferred, but you must still reapply under the UBI system to confirm eligibility.

Q3. Is the UBI taxable?
No, the monthly UBI grant is non-taxable and will not affect your tax return.

Q4. Can foreigners apply for the UBI grant?
Only refugees and permanent residents with legal documentation can apply.

Q5. How long will I receive UBI?
As long as you meet the eligibility conditions, there is no fixed end date. Annual reviews will be conducted.

How to Appeal If Your Application is Rejected

If your UBI application is denied:

  • Log into the UBI portal
  • Click on “Lodge Appeal”
  • Submit reason and updated documents
  • Appeals are resolved within 30 working days
Important UBI Rollout Dates to Remember
Date Milestone
May 10, 2025 UBI Applications Open
May 15–20, 2025 First Payment Batch Starts
May 15, 2025 Appeals System Live
June 1, 2025 Monthly UBI Review Checks Begin

The new UBI scheme marks a bold and strategic shift in South Africa’s social security landscape. With broader inclusion and increased monthly support, it aims to reduce poverty and empower more citizens financially. While the system is more streamlined and better funded, individuals must stay informed and ensure timely application with accurate information.