By Lehlohonolo Lehana.
Government Employees Medical Scheme (GEMS) has defended the decision to implement a weighted average 9.8% increase in member contributions for 2026, citing the need for long-term sustainability.
Despite strong opposition from public sector unions, GEMS principal officer Dr Stanley Moloabi argued that the hike was essential to maintain necessary reserves, as claims had exceeded budget projections.
Moloabi says medical aid schemes operate like a “stokvel,” where members who are sick are paid for by those who are not.
The unions argue that the sharp rise in medical aid contributions comes at a time when public servants are receiving far smaller salary adjustments.
Public Service Coordinating Bargaining Council (PSCBC) said, the increase amounts to a 23.2% over two years.
The PSCBC said there had been “no meaningful restructuring of benefit options to strengthen affordability for lower-income public servants.”
Democratic Nursing Organisation of South Africa (Denosa) president, Simon Hlungwani, says they will march to GEMS’ head office in Pretoria next week to demand the scrapping of the increase.
“Failing which, if GEMS is still very arrogant and not willing to listen to us, we’ll have no choice but to review the resolution that gave rise to GEMS. Therefore, in the end, we’ll then open up so that GEMS stop continuing to have the monopoly of the medical aids for public servants while they’re dealing very hard with the public servants’ livelihood.”
The National Teachers Union (NATU) says repeated cost hikes are making medical aid cover increasingly unaffordable for educators and their families.
NATU says teachers received only a 5.5% salary increase in the 2025/26 financial year and are set to receive a 4% adjustment the next year.
The union says the increases are placing severe financial pressure on teachers who provide an essential service and are an attack on workers’ take-home pay.
NATU has joined the other unions in calling for meaningful consultation to address the impasse.
Lunch-hour demonstrations are scheduled for 24 February 2026 at GEMS offices across provinces, followed by a National Day of Action at the scheme’s head office in Pretoria on 26 February 2026.