Public servant unions condemn 'unaffordable' GEMS medical aid increase of 9.8%

TRADE unions affiliated to FEDUSA are threatening protest action against the Government Employees Medical Scheme (GEMS) after a 9.8% increase in monthly contributions, with unions arguing the hike far exceeds the regulatory guidance and places an unsustainable burden on public servants already facing financial pressure

GEMS implemented the 9.8 % increase from January 2026, IOL reported.

On Sunday, a coalition of unions, including the South African Policing Union (SAPU) and the Public Servants Association (PSA), condemned GEMS for implementing a 9.8% increase in member contributions, describing the decision as a 'blatant departure from the scheme’s mandate to provide affordable healthcare to its members'.

Paul Sauer, representative of the South African Teachers' Union (SAOU), voiced the frustration of public service workers, stating, "In the past two years, we have been shunned by GEMS. We are now left with no alternative but to embark on protest action to get them to retract or withdraw the increases. Our other demand is that GEMS needs to engage us on a collective agreement to ensure that these increases are reasonable."

FEDUSA spokesperson, Betty Moleya, said this decision comes at a time when public servants continue to face sustained financial pressure due to rising living costs, increased household debt, and stagnant real wage growth.

"The cumulative effect threatens access to affordable healthcare and has direct implications for worker wellbeing and the sustainability of public service delivery," Moleya stated.

Moleya indicated that the recent increases should be understood in their cumulative context, after GEMS implemented a 13.4 percent contribution increase in 2025, a 9.8 percent increase from January 2026, followed by the 9.5 percent adjustment effective 1 April 2026.

He said this will result in a cumulative increase of 23.2 percent over two years, while public servants only received a 5.5 percent salary increase for 2025/26.

"The mismatch between wage adjustments and medical aid contribution increases is clear. Real income is being eroded. Workers are being forced to choose between healthcare and other necessities," Moleya added.

The federation further accused GEMS of disregarding the Regulatory Guidance given by the  Council for Medical Schemes, which proposed an average membership contribution increase of 3.3%. As a result, organised labour has called on the regulatory authority to exercise its oversight duties to remedy the situation ahead of the April 2026 increases.

"GEMS proceeded with a 9.8 % increase from January 2026, followed by the 9.5 % adjustment from 1 April 2026. This significantly exceeds the regulator’s benchmark. Organised labour in the PSCBC calls on the regulatory authority to exercise its oversight responsibility to ensure that member interests are protected," the federation stated.

Last month, IOL reported that GEMS had informed public servants’ representatives that it cannot unilaterally reverse the 9.8% increase in 2026 member contributions without approval from the Council for Medical Schemes (CMS), with the insurer indicating that the decrease in the contributions to 9.5% will only be realised in February next year.

According to GEMS, its board of trustees has resolved that the previous recommendation of the 9.8% increase from January 1, 2026, switch to 9.5% if approved by the CMS, is the only implementable option that it can put forward to the PSCBC.

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