Permanent Basic Income Scheme – South Africa’s R350 Social Relief of Distress (SRD) grant, a lifeline for millions during the COVID-19 pandemic, is set to be replaced by a more structured and permanent Basic Income Support (BIS) scheme. This development marks a major shift in the country’s social welfare approach, aiming to create a long-term solution for poverty and unemployment. The move comes after years of public pressure, advocacy by civil society groups, and in-depth government research. The R350 SRD grant was initially introduced in 2020 as a temporary emergency measure to assist the unemployed and vulnerable during the pandemic. However, with persistently high unemployment rates and increasing economic inequality, the government has now begun implementing a more sustainable model in the form of a Basic Income Support program. This new initiative is expected to provide monthly financial support to qualifying adults with no formal income, similar in spirit to universal basic income schemes trialed in other parts of the world. While not universal, this scheme will target the most economically marginalized groups across the country. The Basic Income Support program is expected to be gradually rolled out through the 2025 fiscal year, with key phases and eligibility criteria already outlined. Below is a detailed breakdown of everything you need to know about the new system.
What Is the Permanent Basic Income Scheme?
The Basic Income Support is a permanent monthly income initiative replacing the R350 SRD grant. It aims to provide consistent financial relief to unemployed adults between certain age groups.
- Replaces temporary R350 SRD grant
- Monthly income support for unemployed individuals
- Targeted at ages 18–59 with no income or UIF support
- Administered by the South African Social Security Agency (SASSA)
- Includes automatic annual increases based on inflation
- Funded via national budget reallocations and new tax strategies
Key Differences Between R350 SRD and Permanent Basic Income Scheme
The transition from the R350 grant to BIS introduces several critical changes in scope, benefit, and administration.
| Feature | R350 SRD Grant | Basic Income Support (BIS) |
|---|---|---|
| Type | Temporary | Permanent |
| Monthly Amount | R350 | R370–R450 (expected start range) |
| Eligibility Age Range | 18–59 | 18–59 |
| Employment Status | Unemployed | Unemployed |
| Income Means Test | Yes | Yes |
| Indexation to Inflation | No | Yes |
| Application Renewal | Every 3 Months | Annual or Automated Renewals |
Who Qualifies for the Permanent Basic Income Scheme Grant?
To ensure the grant reaches the truly needy, the BIS scheme comes with specific eligibility criteria.
- South African citizen, permanent resident, or refugee
- Aged between 18 and 59
- Not receiving UIF, NSFAS, or other state income
- Not formally employed or earning above income threshold
- Bank verification of income status
- Digital identity and address verification
Income and Asset Thresholds for Permanent Basic Income Scheme
Applicants must meet financial criteria to qualify. These thresholds are under review but initial values are expected to align as follows:
| Category | Monthly Income Limit | Asset Threshold |
|---|---|---|
| Single Adult | R624 | R5,000 |
| Married (Spouse Income) | Combined R1,248 | R10,000 |
| Dependents in Household | Adjusted per child | R500 per child |
How to Apply for the Permanent Basic Income Scheme
The application process will be similar to the SRD grant but more streamlined using SASSA’s digital systems.
- Visit the official SASSA BIS portal
- Register using your SA ID number
- Link mobile number for OTP verification
- Submit income, employment, and residency status
- Provide banking details for verification
- Await SMS confirmation or follow up online
Documents Required for BIS Application
Ensure you have the following documents ready:
- South African ID or asylum seeker permit
- Proof of residence
- Bank statement (last 3 months)
- Proof of unemployment (if any)
- Cellphone number registered in your name
BIS Payment Schedule and Disbursement Method
Payments under the BIS scheme will be made monthly once approved, directly to beneficiaries’ bank accounts or selected payout points.
- Monthly payouts around the 20th of each month
- Payments through banks, retail stores, or Postbank
- SMS notifications upon payment processing
- Missed months can be back-paid upon appeal
Expected Timeline for BIS Implementation
The rollout will be gradual, with pilot groups receiving the new BIS starting mid-2025.
| Phase | Timeline | Description |
|---|---|---|
| Pilot Phase | July–September | Limited rollout to selected regions |
| Phase 1 | October–December | Nationwide expansion to all qualifying |
| Phase 2 | January 2026 | BIS becomes primary support scheme |
Government’s Plan to Fund the Basic Income Scheme
Financing a permanent grant requires fiscal shifts and structural planning. Government has proposed several options.
- Wealth tax and digital economy tax proposals
- Reallocation from underspent departments
- Reduction in irregular expenditure
- National Treasury long-term budget frameworks
- Economic growth through increased consumer spending
Public Reaction and Economic Outlook
Experts have mixed views on the sustainability of BIS:
- Positive impact on reducing poverty and inequality
- Concerns over long-term fiscal pressure
- Potential inflationary effects if poorly managed
- Improved public trust in social security framework
Key Benefits of the New BIS Grant
The Basic Income Support is designed not just as an income supplement, but a stepping-stone to broader economic inclusion.
- Provides reliable income for daily essentials
- Promotes human dignity and economic participation
- Reduces poverty-related crime and unrest
- Enhances mental well-being and social stability
- Supports households excluded from formal job market
- Complements other welfare programs (like child grants)
Challenges Expected During Transition
As with any systemic shift, some initial issues may arise:
- Technical delays in application processing
- Confusion about eligibility among old SRD beneficiaries
- Need for increased SASSA capacity and support staff
- Ensuring rural area access and outreach
- Managing fraudulent applications
Special Focus: Youth and Women Beneficiaries
Youth and women are expected to benefit disproportionately from the BIS scheme, as these groups are often most excluded from the labor market.
- Higher unemployment rates among youth (15–34)
- Women often primary caregivers with limited job access
- BIS to reduce gender and generational income gaps
- Government to monitor gender-based distribution data
Additional Government Support Programs Coming in 2025
Alongside the BIS rollout, other social development schemes are also being improved:
| Program | Update in 2025 |
|---|---|
| Child Support Grant | Increased value and age eligibility |
| Older Persons Grant | Adjusted to match inflation |
| School Nutrition Programme | Expanded to more schools |
| Youth Employment Initiative | Additional internships and funding |
| Housing Subsidy Scheme | Revised income thresholds and faster approval |
As South Africa shifts toward a permanent basic income model, the new BIS program signals hope for a more inclusive and secure future. While challenges remain, the intent is clear—no South African should be left behind due to joblessness or poverty. Citizens are encouraged to stay informed, apply early, and contribute to the transparency of the process by reporting irregularities or technical issues to SASSA.
FAQs of Permanent Basic Income Scheme
Q1: Will everyone who received the R350 grant automatically get the new BIS grant?
No. All applicants must reapply and meet the new criteria.
Q2: Is BIS the same as Universal Basic Income?
Not exactly. It’s targeted rather than universal, focused on unemployed adults.
Q3: Can I apply without a bank account?
Yes, but having one will speed up the process. Alternatives like Postbank or retail collection points are available.
Q4: What happens if my BIS application is rejected?
You can appeal within 30 days on the SASSA portal.
Q5: Will the BIS amount increase every year?
Yes, it will be adjusted based on inflation and budget decisions.