The planned medical subsidy increase for government employees has been postponed to next month and comes as the Health Minister has promised to intervene in talks on medical aid premium hikes.
The subsidy increase for 2026 will not be implemented this month, as previously announced, due to internal administrative operations, according to the National Treasury and a statement by acting Department of Public Service & Administration (DPSA) director-general Willie Vukela.
“The adjustment will instead be implemented from 1 February, and will accordingly reflect in that month’s salary backdated from January 2026,” he told IOL.
In December, the department announced that DPSA Minister iNkosi Mzamo Buthelezi had determined that the employer subsidy for employees on the Government Employees’ Medical Scheme (GEMS) be adjusted for the period 1 January 2026 to 31 March 2026, and thereafter from 1 April 2026 to 31 March 2027.
The medical subsidy for employees on GEMS is adjusted annually on the basis of the average medical price index of the preceding 12 months ending in August of the current year for implementation, with effect from 1 January of the following year.
The Public Servants Association (PSA) has welcomed Health Minister Dr Aaron Motsoaledi’s recent commitment to engage with GEMS’ board of trustees concerning the rapid increase in medical aid contributions, saying this marked a critical acknowledgement of the financial strain on public servants and their families.
“Premium hikes of …13.4% for 2025 and 9.8% for 2026 have placed an unsustainable burden on members, forcing many to consider forgoing essential medical cover to afford basic necessities like food,” it said, “and came despite the PSA’s strong objection, along with other unions, during negotiations in the Public Service Co-ordinating Bargaining Council.”
IOL article – Delay in Government Employees Medical Scheme subsidy adjustments (Open access)
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