The Government Employees Medical Scheme (GEMS) has caved into pressure and announced a further reduction in its 2026 contribution increase, dropping the weighted average adjustment from 9.5% to 7.5% after protest action by labour unions, reports The Mercury.
The revised increase will take effect from 1 July, pending approval by the Council for Medical Schemes.
In a statement, GEMS said the decision came after an extensive review process by the Board of Trustees and engagements with organised labour, the Minister for Public Service and Administration and other stakeholders.
Initially, the average contribution increase shot up to 9.8% from 1 January 2026, before it was reduced it to 9.5% from 1 February. But members and labour unions slammed the increase as unsustainable.
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.
The labour unions welcomed the reduction, 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, and that to ensure the continued sustainability of the Scheme, “ongoing financial discipline is essential”.
It defended its governance and consultation processes, saying members were represented through elected Board representatives, organised labour engagements, member roadshows and other feedback channels.
See more from MedicalBrief archives:
Unions threaten more protests over GEMS hikes
Planned protests after trade unions reject GEMS hikes