Sassa CEO’s multimillion-rand package revealed amid suspension and grant hikes

The Minister of Social Development, Nokuzola Tolashe, has revealed detailed information about the remuneration package of the CEO of the South African Social Security Agency (Sassa), which operates under her department.

The Sassa CEO earns an annual package of R2.65 million, exceeding the prescribed salary band for director-general-level positions by over R100 000.

Tolashe recently revealed the compensation details in response to a parliamentary question from DA MP Thamsanqa Bhekokwakhe Mabhena, who requested information about executive remuneration across entities reporting to her department.

Social development executive compensation structure

The Sassa CEO, appointed in 2019, earns a monthly basic salary of R154 583.33.

Tolashe explained that the executive receives “additional compensation payable to heads of department, which is 10% non-pensionable allowance in line with Clause 9.1 of Chapter One(1) of the SMS Handbook (amended in April 2003)”.

The package significantly surpasses the standard salary band of R2 259 984 to R2 545 854 applicable to salary level 16 positions at the director-general level.

Tolashe noted that “the salary package offered by the Department of Social Development (DSD) to the CEO which she accepted in 2019; was compared and matched with the salary package she (the CEO) stated; she was receiving from her previous employer; this being in line with Regulation 44 (3) (d) of the Public Service Regulations,2016; as amended”.

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Sassa CEO hot seat

Busisiwe Mamela joined Sassa from Postbank as CEO in 2019. She was suspended last year, reportedly on full pay, amid an investigation into her appointment.

According to Tolashe, Memela’s precautionary suspension was due to issues raised by the Public Protector.

ALSO READ: ‘Myriad of serious issues’ – Why Sassa CEO Memela-Khambula has been suspended

Themba Matlou was later appointed as the acting CEO. A job listing for the position of CEO was advertised this year, with suspicion that Memela may have been dismissed.

Speaking to The Citizen, the department said the position was advertised in preparation for the end of Memela’s term.

The department also refused to comment on the outcome of the investigation.

Performance bonuses discontinued

Unlike private-sector executives, the Sassa CEO did not receive performance bonuses during the 2023-24 or 2024-25 financial years.

Tolashe confirmed that “no performance bonus (once-off) was paid to the CEO because the payment of performance bonus to public servants was discontinued in 2021/22 FY, per DPSA circular number 01 of 2019, which circular is applicable to Sassa”.

However, the CEO does receive an annual service bonus equivalent to a thirteenth cheque worth R154 583.33, paid each November.

This benefit applies universally across the public service as “a transversal service benefit applicable to all employees in the organisation, and the public service.”

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Regulatory framework

The minister emphasised that executive remuneration at Sassa operates under specific legislative requirements.

“Section 7(2) (b) of the Sassa Act (Act No. 9 of 2004) states that ‘The Minister for the Public Service & Administration (DPSA) in consultation with the Minister of Social Development and the Minister of Finance; must determine the remuneration and conditions of service of the Chief Executive Officer and the other members of the staff of the Agency’,” Tolashe stated.

Comparative compensation

The National Development Agency (NDA), another entity under the department’s oversight, pays its acting CEO R2 646 522.52 annually through a total cost-to-company package.

This structure allows employees to customise their benefits allocation based on individual needs.

Like Sassa, the NDA has not paid performance bonuses since the 2019 DPSA circular, which discontinued such payments across the public service.

Sassa social grant increases for 2025

Child support grants will increase from R530 to R560, and grant-in-aid will receive an identical increase.

Beyond executive compensation, the department oversees significant social spending through various grant programs.

The National Treasury’s 2025 Budget Overview confirmed increases across multiple social grants, though the Social Relief of Distress grant remains unchanged.

The old age grant will increase from R2 185 to R2 315, while the war veterans grant will increase from R2 205 to R2 335.

Disability grants will climb from R2 185 to R2 315, and foster care grants will increase from R1 180 to R1 250.

The care dependency grant matches the Disability grant increase, moving from R2 185 to R2 315.

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SRD grant extension

Finance Minister Enoch Godongwana announced during his Budget Speech that “the temporary Covid 19 SRD grant will be extended until 31 March 2026, with R35.2 billion allocated to maintain the current R370 per month per beneficiary, including administration costs”.

Godongwana indicated government is “actively exploring various options to better integrate” the SRD grant with employment opportunities.

“This includes considering a job-seeker allowance and other measures, as part of the review of Active Labour Market Programmes.

“Our goal is to not only provide immediate relief. It is also to create pathways to employment, empowering our citizens to build better futures for themselves and their families,” he said.

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Sassa beneficiary statistics

Sassa manages grants for approximately 19.2 million beneficiaries, distributed across various programs.

This amount is distributed among the beneficiaries as follows:

• The Child Support grant serves the largest population, with 13.1 million recipients,
• Followed by 4.1 million Older Persons pension grant beneficiaries; and
• 1.05 million Disability grant recipients.

Smaller programs include:

• 515 553 Grant-in-Aid recipients;
• 213 425 Foster Child grant beneficiaries;
• 172 459 Care Dependency grant beneficiaries; and
• Seven War Veterans grant recipients.

Meanwhile, the SRD grant, operating in its fifth cycle since the Covid-19 lockdown in 2020, currently assists approximately 9.2 million.

The number includes all eligible South Africans, refugees, and asylum seekers.

Treasury projects that social grant beneficiaries, excluding SRD recipients, will reach 19.3 million people by March 2028, with the grants budget increasing by R1.6 billion in the 2025-26 financial year.

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