The Government Employees Medical Scheme (GEMS) has announced a reduction in its 2026 contribution increase from 9.5% to 7.5%, responding to pressure from labour unions and members.
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The Government Employees Medical Scheme (GEMS) has announced a further reduction in its 2026 contribution increase, lowering the weighted average adjustment from 9.5% to 7.5% after protest action by labour unions.
The revised increase will take effect from 1 July 2026, pending approval by the Council for Medical Schemes (CMS).
In a statement issued on Thursday, GEMS said the decision followed an extensive review process by the Board of Trustees and engagements with organised labour, the Minister for Public Service and Administration and other stakeholders.
The Scheme had initially announced an average contribution increase of 9.8% from 1 January 2026, before reducing it to 9.5% from 1 February. But the move resulted in fierce backlash from members and labour unions which said the increase was unsustainable for government workers.
COSATU and FEDUSA accused the Scheme of placing an unfair financial burden on public servants already struggling with rising living costs.
GEMS said the latest reduction was made possible through cost-containment measures, improved operational efficiencies and ongoing financial management interventions.
“As a Scheme, we are acutely aware of the pressure that rising costs place on our members and their families,” said GEMS principal officer Dr Stan Moloabi.
“This further reduction reflects our commitment to act in members’ best interests, while ensuring the Scheme remains sustainable for the long-term.”
The labour unions welcomed the reduction earlier on Thursday, describing it as a victory achieved through worker mobilisation, protest action and negotiations.
GEMS said the Board of Trustees had considered actuarial advice and the need to strengthen reserve levels toward the regulatory benchmark while balancing affordability concerns.
The Scheme added that healthcare inflation, increased utilisation of healthcare services, higher medicine prices and rising provider tariffs continued to place strain on medical schemes across the sector.
“Contribution adjustments are largely influenced by medical inflation factors, such as rising healthcare provider tariffs, medical technology, medicine prices, and increased utilisation of healthcare services,” the Scheme said.
“To ensure the continued sustainability of the Scheme, ongoing financial discipline is essential.”
According to GEMS, several interventions aimed at reducing fraud, waste and abuse had contributed to improved operational efficiency and created room for the latest reduction.
The Scheme said savings generated through these efficiencies were being redirected to benefit members.
Since its establishment in 2005, GEMS has grown into one of the country’s largest medical schemes, serving approximately 2.4 million beneficiaries, mainly public service employees and their dependants.
GEMS also defended its governance and consultation processes, saying members were represented through elected Board representatives, organised labour engagements, member roadshows and other feedback channels.
“The decision announced today reflects our commitment to being responsive, transparent, and member-centric,” said Moloabi.
“GEMS will continue to engage, listen, and act in ways that uphold our mandate and deliver sustainable value to our members.”
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