When Cash Pay Points For Sassa Grants Will Close



Sassa made a significant announcement towards the close of 2023 that has implications for beneficiaries receiving grants at Post Offices. Subsequently, additional information regarding this matter has been disclosed.



The South African Social Security Agency (Sassa) revealed that Post Offices will cease disbursing Sassa grants to beneficiaries in cash. This stems from Sassa and the Postbank collaboratively phasing out all physical cash payment points (CPPs), encompassing cash withdrawal services at Post Offices.

This will begin in January of the current month and conclude by the end of March 2024, as stated recently by Sassa:

Please note that During January and March 2024, SASSA will be closing all remaining SASSA and Postbank Cash points. 

Reportedly, this is impacting fewer than 2% of all recipients of Sassa social grants.

Bongani Diako, the spokesperson for Postbank, clarified that the Post Office will continue to offer non-cash services, including card reissues, PIN resets, and statement printing.

A sum of 870 cash pay points is slated for closure. Sassa has issued a schedule detailing the closing dates for these points across South Africa, providing a breakdown of the closures by province:

  • Eastern Cape - 277
  • Free State - 26
  • Western Cape - 0
  • Gauteng - 6
  • Northern Cape - 13
  • North West - 96
  • Limpopo - 216
  • Mpumalanga - 53 
  • Kwazulu-Natal - 183

Why this is happening

The reason behind cash no longer being made available at Post Offices is due to the Post Office's financial struggles, having incurred a R6 billion loss over the past three years, with an R2.2 billion loss in the 2022/2023 financial year.

As part of its business rescue plan, the Post Office is set to close 420 loss-making branches and retrench 6,000 employees, with the potential for a R3.8 billion government bailout. The plan also includes phasing out revenue streams that have “failed to produce revenue”.

The revenue services they are referring to include Over Counter (‘OTC’) payment services, which include SASSA and cash pay points (‘CPP”) payments.

Where should Sassa grant beneficiaries get their Sassa money then?

Sassa grant beneficiaries will still be able to withdraw cash, just not at a Post Office. They can instead use their Sassa gold card at ATMs or retail stores such as Boxer, Pick N Pay, Spar, Shoprite, Usave and Checkers. 

Sassa gold card social grant recipients using CPPs and Post Office branches must now use those cards at any place that accepts a bank card. This includes making purchases in any retailer that has a point of sale to swipe for goods or withdrawing funds from any retailer that provides a cash-back functionality.

But aren't Sassa gold cards expiring?

Sassa announced earlier this year that the validity of gold cards has been extended and would no longer expire on 31 December 2023. This means that Sassa grant beneficiaries with expiring cards can continue to use their Sassa cards for Sassa grant payments.

Sassa and Postbank  will communicate the dates for replacing expired cards in due course.

They continued to say, "Clients who did not effect any change on their payment methods should still receive their grants in their Sassa gold cards"

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