Withdraw 9.8% medical aid hikes or else... public service unions warn GEMS

FEDUSA-affiliated trade unions in the Public Service Coordinating Bargaining Council (PSCBC) have described the Government Employees Medical Scheme’s (GEMS) 9.8 % monthly contribution increase as a 'blatant departure from the scheme’s mandate to provide affordable healthcare to its members'.

GEMS implemented the increase from January 2026.

A coalition of unions, including the South African Policing Union (SAPU) and the Public Servants Association (PSA), condemned GEMS for implementing the increase.

Paul Sauer, representative of the South African Teachers' Union (SAOU), said their organisation left with no alternative but to embark on protest action to get GEMS to retract or withdraw the increases.

"In the past two years, we have been shunned by GEMS. Our other demand is that GEMS needs to engage us on a collective agreement to ensure that these increases are reasonable."

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

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," said Moleya.

GEMS  had previously informed public servants’ representatives that it cannot unilaterally reverse the 9.8% increase in 2026 member contributions without approval from the CMS with the insurer indicating that the decrease in the contributions to 9.5% will only be realised in February next year.

Cape Times