Universal Basic Income – In a historic shift for South Africa’s social welfare landscape, the government has officially confirmed that from June 2025, the Universal Basic Income (UBI) program will begin phasing out the R350 Social Relief of Distress (SRD) grant. This bold new approach aims to provide a more permanent solution to poverty and unemployment by offering monthly cash support to a much wider group of vulnerable citizens, regardless of their employment status. The SRD grant, which was introduced in May 2020 in response to the COVID-19 pandemic, provided much-needed relief to millions. However, it has long been criticized for being insufficient, exclusionary, and temporary. The proposed Universal Basic Income, starting with a pilot rollout in select regions, will target a minimum monthly payout of R624, adjusted annually based on inflation and cost-of-living assessments. For many South Africans struggling with unemployment and rising living costs, this change could mark a turning point. Government authorities have emphasized that the new system will aim for broader coverage, better integration with other social programs, and simplified application procedures. While the SRD grant required applicants to be unemployed and earn less than R624 per month, the UBI will remove many of these limitations, making it accessible to a much larger population group. The Department of Social Development and National Treasury have worked together to design the funding structure and ensure fiscal sustainability through tax reform and economic growth forecasts. As the rollout begins, here’s everything you need to know about the Universal Basic Income program, how it will replace the R350 SRD grant, who qualifies, how to apply, and what to expect next.
Universal Basic Income vs R350 SRD – What’s Changing?
Here’s how the new UBI differs from the outgoing SRD grant and why this change matters.
- UBI will provide fixed monthly income regardless of employment status.
- No need to reapply every month; the process will be automated.
- Rollout will begin in phases, starting with vulnerable groups already on the SRD list.
- UBI is set to increase the amount from R350 to approximately R624 or more.
- Integrated with ID verification and bank account systems for faster payments.
- Additional funding to come from wealth tax and reallocation of existing welfare budgets.
Key Comparison Table: UBI vs SRD Grant
| Feature | SRD Grant (Old) | Universal Basic Income (New) |
|---|---|---|
| Monthly Amount | R350 | R624 (initial) |
| Eligibility Requirement | Unemployed, < R624 | Anyone over 18 (pilot phase) |
| Application Needed | Yes (monthly) | Once (automated renewal) |
| ID Verification | Required | Biometric + Digital |
| Rollout Start Date | May 2020 | June 2025 |
| Duration | Temporary | Permanent |
| Funding Source | National Budget | Tax Reform + Treasury Reserves |
| Increase Adjustment | None | Annual (inflation-linked) |
Who Will Get the Universal Basic Income First?
The government has identified priority groups who will be the first to benefit under the new system.
- Existing SRD grant beneficiaries
- Unemployed youth aged 18–35
- People with no social grant history
- Rural and township residents with low income
- Informal workers without UIF or pension access
Universal Basic Income – Pilot Regions for June 2025 Rollout
The UBI pilot rollout will begin in the following areas as part of Phase 1:
| Province | District/City | Expected Beneficiaries |
|---|---|---|
| Gauteng | Soweto, Tembisa | 210,000+ |
| Western Cape | Khayelitsha, Mitchells Plain | 145,000+ |
| KwaZulu-Natal | Umlazi, Pietermaritzburg | 180,000+ |
| Eastern Cape | Mthatha, East London | 160,000+ |
| Limpopo | Polokwane, Thohoyandou | 130,000+ |
How to Apply for the Universal Basic Income?
Application for UBI will be far simpler than the SRD process, with less red tape and greater automation.
- Use your South African ID or Smart ID Card
- Ensure your cellphone number is RICA-registered
- No income verification needed for Phase 1
- Existing SRD recipients will be auto-enrolled
- Others can apply via SASSA online portal or at community centers
Required Documents for New Applications
| Document Type | Needed For |
|---|---|
| South African ID | Identity Verification |
| Bank Account Details | Direct Payment Setup |
| Proof of Address (Optional) | Regional Tracking |
| Contact Number (RICA) | Verification & Notifications |
Benefits of UBI Over Temporary SRD
UBI is not just a grant – it’s a transformative policy aimed at fighting poverty and inequality.
- Removes the uncertainty of monthly reapplications
- Provides financial dignity to all citizens
- Creates a safety net during economic downturns
- Encourages consumer spending, stimulating the economy
- Supports people in informal work, caregiving, or job search
Monthly Budget Comparison for Recipients
| Category | With SRD (R350) | With UBI (R624) |
|---|---|---|
| Food | R150 | R300 |
| Transport | R50 | R100 |
| Airtime/Data | R50 | R75 |
| Rent Contribution | R100 | R120 |
| Savings | R0 | R29 |
Will Other Social Grants Be Affected?
The rollout of UBI will not replace or cancel existing social grants like pensions, child support, or disability grants.
- UBI will act as a baseline income in addition to other grants
- No deductions will be made from existing grants
- Eligibility for UBI does not remove access to SRD-like temporary relief in emergencies
Co-existence of UBI with Other Grants
| Grant Type | Amount | Can Combine with UBI? |
|---|---|---|
| Old Age Grant | R2,180 | Yes |
| Disability Grant | R2,090 | Yes |
| Child Support Grant | R510 | Yes |
| Foster Care Grant | R1,180 | Yes |
| Care Dependency Grant | R2,200 | Yes |
Concerns and Criticism Around UBI Rollout
While widely welcomed, some economists and politicians have raised concerns about the funding model and possible inflation impact.
- Treasury must ensure sustainable funding without large tax hikes
- Potential inflation if cash supply rises too quickly
- Government promises to adjust and review the rollout every 6 months
- Calls for more clarity on long-term cost to taxpayers
What Critics Are Saying
| Concern | Government Response |
|---|---|
| Will UBI replace all welfare? | No, it will complement existing grants |
| Can South Africa afford this? | New taxes on high-income earners proposed |
| Is R624 enough to survive on? | Amount will be reviewed yearly |
| Will this make people stop working? | Data from trials show work levels remain |
Final Rollout Timeline: What Happens Next?
The Department of Social Development has laid out a clear roadmap for the UBI rollout through the rest of 2025.
| Month | Activity |
|---|---|
| June 2025 | Pilot Phase in 5 provinces |
| July–August 2025 | Expansion to 3 more provinces |
| October 2025 | Review of impact, adjust payment level |
| December 2025 | National rollout decision |
This new phase in South Africa’s welfare approach could redefine the economic future for millions. While challenges remain, the shift to Universal Basic Income offers long-term stability compared to the limited and uncertain nature of the SRD grant. Citizens are encouraged to stay informed, check their eligibility, and be ready to transition smoothly when contacted by SASSA or the Department of Social Development.
FAQs of Universal Basic Income
Q1: Will my SRD grant stop immediately in June?
No, SRD will gradually be phased out. Those eligible for UBI will be moved over automatically.
Q2: Can I receive both UBI and another grant like child support?
Yes, UBI will be added on top of any other grant you receive.
Q3: What if I don’t have a bank account?
You will be assisted through SASSA offices to create an account or use Postbank.
Q4: Is the UBI taxable?
No, the income is not taxed for individuals receiving the UBI.
Q5: Will everyone in South Africa eventually get UBI?
Yes, if the pilot is successful, the plan is to roll out UBI nationwide by mid-2026.
