Sassa and Postbank: Extended notice period for social grants agreement

The South African Social Security Agency (Sassa) has announced an extension of the termination notice period of its Master Services Agreement (MSA) with Postbank, now spanning an additional three months. 

In a statement, Sassa spokesperson Paseka Letsatsi said this is to allow the executive authority time and space to deliberate on various issues from the two entities and give guidance. 

Letsatsi said Sassa is dedicated to prioritising the needs of its millions of beneficiaries and enhancing their customer experience.

This comes after Postbank CEO Nikki Mbengashe, in a statement, announced that the MSA with Sassa remains in place and will continue unchanged until an Inter-Ministerial Committee (IMC) has been constituted and deliberated on the matter. This meant the MSA would not terminate on Tuesday, September 30, 2025. 

Mbengashe said that brought 'certainty and assurance to millions of social grant beneficiaries who will continue to use their Postbank black cards and Sassa gold cards with confidence, enjoying uninterrupted access to their grants and associated banking benefits'.

Mbengashe highlighted that this development provides millions of social grant beneficiaries with certainty and assurance. They can continue to confidently use their Postbank black cards and Sassa gold cards, ensuring uninterrupted access to their grants and all associated banking benefits.

She said Postbank is dedicated to protecting beneficiaries’ interests, guaranteeing their ongoing access to social grants. These grants are vital to South Africa’s constitutional commitment to social protection. The bank remains steadfast in its support of beneficiaries, ensuring their well-being and access to secure, reliable, and dignified banking services.

The North Gauteng High Court, Pretoria, recently sided with Sassa, rejecting Postbank’s urgent bid to prevent the termination of the MSA.

Judge Colleen Collis dismissed Postbank’s urgent application, agreeing with Sassa that the matter did not warrant urgency. The judge further noted that Postbank had been aware, since March 2024, of Sassa’s intention to terminate the MSA.

thobeka.ngema@inl.co.za