Basic Income Support (BIS) Policy: South Africa’s Upcoming Social Security Reform

South Africa is poised to make a landmark transition in its social security system, with a draft Basic Income Support (BIS) policy currently under consultation.

Final approval is expected in late 2025, launching the country toward a comprehensive and inclusive social safety net.

Table of Contents

Why BIS Matters: Policy Purpose & Context

The Department of Social Development (DSD) has been formulating the BIS policy since 2022, with the first draft reviewed by Cabinet in November 2024. Further stakeholder consultations occurred in mid-2025.
BIS aims to evolve from the temporary Social Relief of Distress (SRD) grant into a permanent, means-based income support for all eligible adults aged 18–59, addressing entrenched poverty and unemployment.
The policy includes a phased expansion—starting at the Lower Bound Poverty Line (LBPL) and eventually covering households at or below the Upper Bound Poverty Line (UBPL).

Key Features of the Draft BIS Policy

Eligibility & Grant Value

Adults aged 18–59 who earn below the LBPL and are not receiving other social grants (except Child Support Grant).
Draft proposes a monthly payment indexed to the LBPL, with gradual increases over time.

Timeline & Launch

A follow-up stakeholder workshop was held in June 2025, with Cabinet reconsidering the revised BIS draft in Q3 2025.
If approved, the policy will be published for public comment before implementation.

Transitional Protection

The SRD grant (currently R370/month) has been extended through 2025/26, safeguarding income support while BIS is finalized.

Proposed Rollout Timeline

Phase	Timing
Cabinet review and revision	Q3 2025
Policy published for public comments	Late 2025
National Treasury budget allocation decision	Early 2026
Pilot / phased roll‑out beginning	Mid‑2026 to 2027

How BIS Will Work: Payment & Access

Means‑tested payments with simplified registration via SASSA or municipal platforms.
Monthly disbursements, aligned with existing grant payment cycles.
Continues to use SRD eligibility verification infrastructure while expanding to unserved adults.

Wider Policy & Fiscal Landscape

The 2025 National Budget allocates substantial social assistance funding but signals caution on financing implications.
Civil society organisations (e.g. UBIC) urge for higher SRD grant value, expanded beneficiary coverage, and transparency through public consultation.
Concerns persist over stringent means-testing and suspension protocols, which reportedly exclude eligible recipients.

Challenges & Critical Risks

Fiscal concerns around long-term affordability and alignment with existing social protection programs.
Risk of administrative exclusion, given previous reports of erroneous SRD rejections based on flawed algorithmic checks.
Delay in publication and public feedback could delay rollout beyond 2026.
Coordination with Treasury, Labour, Employment & the Presidency remains critical in final policy alignment.

Why This Reform Matters

BIS lays the groundwork for a comprehensive social security system, transitioning from fragmented grants to universal access for low-income working-age adults.
It targets the structural gaps that leave millions ineligible for grants.
Represents a significant shift toward a rights‑based safety net, anchored in poverty lines and social parity.

South Africa’s Basic Income Support policy, currently in final drafting, promises to transform the SRD grant into a permanent, inclusive system for adults aged 18–59.

If approved and financed timely, BIS could launch in 2026, significantly reducing poverty and boosting economic inclusion. Keep track of public consultations and application guidelines.

Frequently Asked Questions

1. How will BIS differ from the SRD grant?

Unlike the SRD’s emergency-based, short-term nature, BIS is designed as a permanent, means-based income grant with eligibility tied to national poverty lines.

2. When will BIS be implemented?

The draft policy is expected to be reviewed and revised in Q3 2025, followed by public comments and potential phased implementation from mid-2026 onward.

3. Will SRD payments continue while BIS is processed?

Yes. The R370 SRD grant has been extended through the 2025/26 financial year as a stopgap measure while BIS is finalized.