GEMS announces revised 9.5% increase for member contributions for 2026

The Government Employees Medical Scheme (GEMS) has announced a revised 9.5% increase in member contributions for 2026 after engagement with labour unions through the Public Service Coordinating Bargaining Council (PSCBC).

GEMS had initially announced a contribution adjustment of 9.8% on November 17 last year as approved by the Council for Medical Schemes.

However, there was an outcry from several labour unions which said the large increase would place further financial strain on workers already battling rising costs. 

GEMS said in a statement on Thursday that subsequent consultations with key stakeholders, including the PSCBC and further actuarial analysis have informed the revised adjustment.

“During the consultations, the Scheme provided detailed information on operational costs which includes a breakdown of non-healthcare costs. The decision aligns with GEMS’ mandate to provide affordable and comprehensive healthcare benefits to public service employees, while ensuring the long-term financial sustainability of the Scheme.”

Dr Stan Moloabi, Principal Officer of GEMS emphasised that an adjustment below 9.5% would “compromise the Scheme’s financial stability and operational efficiency, thereby jeopardising our ability to fulfil our mandate”.

Importantly, GEMS said that for January 2026, the contribution adjustment of 9.8% will apply and the revised adjustment of 9.5% will be implemented from February 2026.

The medical scheme added that it remains one of the most affordable medical schemes in South Africa.

For a standard public service family, contributions are up to 23% lower than those in comparable open schemes before the subsidy is taken into account, and up to 51% lower after the subsidy is included.

It added that members and stakeholders have been informed of the revised and approved contribution adjustment for 2026 through official communication channels.

Last November, the Public Servants Association (PSA), which represents more than 245,000 public servants and pensioners, described the 9.8% increase as “unilateral and exorbitant”.

It has not yet commented on the revised increase.

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