Universal Basic Income – As South Africa transitions into a new phase of economic support, the long-anticipated Universal Basic Income (UBI) program is set to officially replace the SRD (Social Relief of Distress) grant from August 2025. This marks a monumental shift in how the government supports low-income individuals and vulnerable citizens. The new system is designed to offer more stability and broader inclusion in response to rising unemployment, inflation, and inequality. The SRD grant was initially introduced as a temporary relief measure during the height of the COVID-19 pandemic. While it provided much-needed financial support, its limitations became more visible over time. As the country moves forward, the Department of Social Development, in collaboration with the National Treasury, is launching UBI as a more permanent, equitable, and progressive solution. UBI will provide a fixed monthly income to qualifying citizens, regardless of their employment status. Unlike the SRD grant, which required constant reapplication and eligibility checks, the UBI model aims to provide continuity and dignity to its recipients. The government has committed to ensuring that the rollout will be as smooth as possible, with eligibility, application, and payment systems already being prepared for nationwide use. This article breaks down everything you need to know about the Universal Basic Income, including who qualifies, how much you can expect, how it compares to the SRD, and how to apply. Keep reading to stay fully informed about this groundbreaking policy shift.
What is Universal Basic Income and Why Is It Being Introduced?
Universal Basic Income is a monthly government allowance paid to all eligible adults to reduce poverty and ensure a basic standard of living.
- Introduced to replace the SRD Grant as a long-term poverty reduction tool
- Aims to provide consistent and reliable income support
- Part of the broader economic reform to reduce inequality
Key Objectives of UBI
The government has outlined several primary goals behind the launch of UBI:
- Promote economic inclusion
- Provide social safety net to unemployed and low-income earners
- Reduce dependence on short-term relief grants
- Stimulate local economies through increased consumer spending
UBI vs SRD Grant – What’s Different?
Let’s compare the UBI to the outgoing SRD grant to understand the key differences in value, eligibility, and ease of access.
| Feature | SRD Grant (until July 2025) | UBI Program (Starting August 2025) |
|---|---|---|
| Monthly Amount | R370 | R760 |
| Application Frequency | Monthly reapplication | One-time application |
| Eligibility Age | 18-59 years | 18+ years |
| Employment Requirement | Unemployed only | All income brackets (with limits) |
| Income Threshold | Below R624/month | Below R2,200/month |
| Payment Method | Bank/Post Office/Cash Send | Bank account only |
| Duration | Temporary | Permanent (subject to review) |
| Support Service Availability | Limited | Expanded nationwide centres |
Why Is the Amount Higher?
The increase to R760 reflects adjustments for inflation and cost of living. It also aims to bridge the gap between poverty and minimum living standards.
- Indexed to inflation annually
- Higher rate aims to cover basic needs such as food, transport, and utilities
Who Qualifies for UBI in 2025?
Eligibility for the new UBI program is broader than the SRD grant, allowing more South Africans to benefit.
- South African citizens or permanent residents
- Aged 18 and above
- Monthly income below R2,200
- Not receiving other social grants (excluding child support)
- Must have a valid bank account
- Residing within South Africa
Additional Eligibility Notes
UBI is structured to avoid duplication of benefits and target the most financially vulnerable.
| Criteria | Requirement |
|---|---|
| Citizenship | South African/permanent |
| Age | 18+ |
| Monthly Income Limit | Less than R2,200 |
| Receiving Other Social Grants | No (except child support) |
| Employment Status | Employed or unemployed |
| Residing in SA | Must reside in country |
| Application ID Requirement | SA ID number |
How to Apply for the UBI Program
Application processes have been simplified compared to the SRD grant, with both online and offline options.
- Applications open from July 25, 2025
- Visit the official SASSA website or offices nationwide
- Required documents: SA ID, proof of income (if applicable), bank account details
Step-by-Step Guide to Apply
Follow these steps to ensure your application is submitted correctly:
- Visit the official UBI portal at www.sassa.gov.za/ubi
- Register your profile using your SA ID number
- Upload supporting documents including proof of income
- Enter your banking details
- Submit your application
- Receive confirmation SMS or email
- Status updates available through your portal dashboard
What Can You Expect After Approval?
Once your application is approved, you can expect regular and reliable payments into your account every month.
Payment Schedule and Frequency
| Month | Expected Payment Date |
|---|---|
| August 2025 | August 29, 2025 |
| September 2025 | September 26, 2025 |
| October 2025 | October 28, 2025 |
| November 2025 | November 27, 2025 |
| December 2025 | December 22, 2025 |
| January 2026 | January 28, 2026 |
| February 2026 | February 25, 2026 |
Payment Method and Support
- Funds will only be transferred to verified bank accounts
- Payment helpline available at all major SASSA offices
- SMS alerts for approved payments and issues
Long-Term Benefits of UBI for South Africans
The long-term effects of a UBI system go beyond financial aid. It aims to uplift communities and stabilize economic wellbeing.
Economic Stability and Empowerment
UBI contributes to a more stable society by giving people a financial baseline to rely on.
- Reduces crime and desperation linked to poverty
- Encourages job-seeking while reducing dependence
- Supports entrepreneurship and informal business
Social Development Impacts
Regular income allows families to plan better and support education, health, and childcare.
- Improves school attendance by reducing household strain
- Supports access to basic healthcare and nutrition
- Lowers mental health pressures related to financial insecurity
Gender and Youth Empowerment
Women and youth, who are often economically marginalized, stand to gain immensely from UBI.
- Encourages female-led households to sustain income
- Supports youth in transitional phases post-education
- Reduces economic dependency on older generations
FAQs About the Universal Basic Income Launch
1. When does UBI start?
August 2025
2. What replaces SRD?
Universal Basic Income
3. Monthly payment amount?
To be confirmed
4. Who qualifies automatically?
SRD recipients
5. Application required?
No