Delay in Government Employees Medical Scheme subsidy adjustments
The Department of Public Service and Administration (DPSA) has announced that increases to government employees’ medical subsidy for 2026 will not be implemented this month due to internal administrative operations.
In communication to all heads of national and provincial departments and provincial administrations last month, acting DPSA Director-General Willie Vukela indicated that due to internal administrative operations, the National Treasury has advised that the adjustment of medical subsidy will not be effected in January 2026 as initially anticipated.
“The adjustment will instead be implemented from February 1, 2026, and will accordingly reflect in the February salary backdated from January 2026,” Vukela stated.
He also urged departments to note that the expenditure incurred as a result of implementing the provision will be defrayed from the existing departmental budget allocations.
In December, the department announced that Public Service and Administration Minister iNkosi Mzamo Buthelezi had determined that the employer subsidy for employees on the Government Employees’ Medical Scheme (GEMS) to be adjusted for the period January 1, 2026, to March 31, 2026, and thereafter for the period April 1, 2026, to March 31, 2027.
According to the determination, Buthelezi shall adjust the medical subsidy for in-service employees on GEMS 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 January 1 of the following year.
On Friday, the Public Servants Association (PSA) welcomed Health Minister Dr Aaron Motsoaledi’s recent commitment to engage with GEMS’ board of trustees concerning the rapid increase in medical aid contributions.
The union stated that although overdue, Motsoaledi’s intervention marked a critical acknowledgement of the financial strain that public servants and their families have been experiencing.
“Recent premium hikes of approximately 13.4% for 2025 and 9.8% for 2026 have placed an unsustainable burden on PSA members, forcing many to consider forgoing essential medical cover to afford basic necessities like food.
“These across-the-board increases came despite the PSA’s strong objection, along with other unions, during negotiations in the Public Service Co-ordinating Bargaining Council,” the PSA noted.
The union added that the intention to formally engage with GEMS’ board of trustees regarding unaffordable rates is both timely and encouraging.
“Although this response is long overdue, we appreciate the minister’s recognition of the issue. We trust that his engagement with GEMS trustees will lead to greater affordability and fairness for all scheme beneficiaries,” the PSA explained.
However, it also lauded Motsoaledi’s noble intent to collaborate constructively in pursuit of a fair, sustainable medical scheme for public servants.
“As the discussions progress, the PSA will continue to advocate vigorously for measures ensuring that no public service worker has to choose between healthcare and basic living expenses,” the union explained.
loyiso.sidimba@inl.co.za