1. (a) The Department pays the unit cost for each older person per month which is inclusive of the package of service provided to the older person. The stipend for employees is determined by the Old Age Home and employees as the old age run independently and not by DSD.
Subsidies were last increased in April 2012 due to budgetary constraints
Refer to 2 below
2. Yes, provinces determine their own subsidies based on funds appropriated by the Provincial Treasuries through the equitable share budget. However, DSD in partnership with National Treasury is in a process of finalising the costing model aimed at standardising funding of services across the country. The implementation thereof will be determined by allocation of funds by the national and provincial treasuries.
1