Public sector unions condemn 9.8% GEMS contribution increase amid workers' financial strain
Public-sector unions have strongly rejected the average 9.8% increase in member contributions for the Government Employees Medical Scheme (GEMS) for 2026.
Unions representing hundreds of thousands of public servants say the decision undermines trust and places further financial strain on workers already battling rising costs.
Teachers’ union, the Suid-Afrikaanse Onderwysersunie (SAOU) accused GEMS of acting in bad faith.
The union argued that GEMS “has lost the trust of their 800,000 members” and continues to make “one-sided decisions” while offering no meaningful consultation or communication.
The SAOU added that it had spent much of 2025 attempting to restore confidence after a similar process played out in 2024, but said “the unilateral approach of GEMS has demolished those efforts and that alienation of members is widespread.”
The Public Servants Association (PSA), which represents more than 245,000 public servants and pensioners, was equally critical, describing the increase as “unilateral and exorbitant”.
The PSA said the decision was taken despite “overwhelming opposition by unions at the Public Service Coordinating Bargaining Council (PSCBC).”
Calling the hike “reckless,” the PSA warned it would “devastate the financial stability of hundreds of thousands of public servants and erode any gains from wage negotiations.”
The PSA said GEMS has abandoned the principles on which it was founded under PSCBC Resolution 1 of 2006, arguing that instead of providing affordable cover, the scheme “has entrenched itself as a monopoly, shielded from competition” and is now “exploiting its position to impose unaffordable increases that force employees to choose between healthcare and survival.”
The union reported “a flood of calls from distressed members who are contemplating cancelling their medical aid owing to this unjustifiable hike,” adding that this is a crisis that threatens the health and dignity of public servants and their families.
The PSA also rejected GEMS’ explanation that healthcare inflation and utilisation patterns necessitated the increase, calling these justifications “hollow when GEMS continues to outsource billions to private administrators and fails to address fraud, waste, and abuse in its system.”
The PSA confirmed it is “actively exploring litigation options” and urged the Minister of Public Service and Administration and the Minister of Finance to intervene “as a matter of urgency to restore fairness and affordability.”
The Police and Prisons Civil Rights Union (POPCRU) has also rejected the 9.8% increase.
POPCRU called the increase “completely unacceptable,” arguing that public servants have faced “consecutive excessive hikes” between 2023 and 2025, with the latest rise being “yet another blow to already overstretched household incomes.”
The union said GEMS “has steadily evolved into a costly scheme that no longer fulfils its founding mandate,” adding that the “continuous escalation of contributions, exceeding 25% over the past two years alone, shows a blatant disregard for the harsh financial realities confronting workers in the public service.”
GEMS had not responded to a request for comment by the time of publication, however in an article in The Mercury’s sister newspaper Business Report the medical scheme said the contribution adjustment is a necessary investment to secure access, value and stability for its more than 2.4 million beneficiaries.
GEMS chief operations officer, Dr Vuyo Gqola was quoted as saying that GEMS contributions will continue to be among the most affordable in the sector because of its low starting base.