The Government Employees’ Medical Scheme (GEMS) is facing threats of legal action over its decision to increase member contributions by 9.8% this year.
The Public Servants Association (PSA) has indicated that the increase implemented by GEMS was not agreed upon with the unions at the Public Service Coordinating Bargaining Council (PSCBC) and that the medical aid scheme merely consults and then implements unilaterally.
The union has told its members that it has held numerous meetings held to discuss GEMS’ increase, with the last meeting held on December 18.
“GEMS had tabled the revised increase from 9.8% to 9.5%, subject to approval by the Council for Medical Schemes (CMS), which was rejected and sent back for reconsideration.
“Sadly, during the meeting of December 18, GEMS reported that, upon considering all factors, anything less than 9.5% would be contrary to the Medical Schemes Act, which requires medical schemes to maintain a minimum solvency rate of 25%,” the PSA informed its members.
According to the union, the GEMS Board reported that their offer of 9.5% is the best offer considering the circumstances and their financial position and also made presentations that showed the increment is not as steep as the PSCBC parties (public service unions and the government) made it appear.
However, according to the PSA, GEMS’ figures were based on a 9.33% subsidy assumption, which is far from what the employer offered.
“The assumption was illogical, as it remains public knowledge that subsidy is based on the medical price index, which is far lower than the assumption used by GEMS, hence the commitment to conduct recalculations within a week.
“After the meeting, GEMS responded that the assumption did not impact the weighted contribution increase of 9.8%; rather, it was just for demonstration purposes, thus would not alter the proposal of 9.8%,” the union stated.
In addition, GEMS is therefore not willing to reconsider the increase below 9.5%.
Negotiators had resolved in the meeting of December 18 that unions will report back to their principals for further direction and that there is an urgent need for the PSCBC to invite CMS to address the issue of the solvency rate.
The PSA is currently considering its options, which might include legal remedies if possible.
In the intervening period, as reported by Independent Media, the Department of Public Service and Administration issued a circular advising the departments that there would be a delay in the implementation of the adjustment of medical subsidy for employees on GEMS, meaning that the subsidy will not be effected in January 2026 but will be implemented from 1 February 2026, backdated from January 2026.
“The effect of such a delay is that although 9.8% will be implemented from January 2026, the adjusted subsidy will only be implemented in February, meaning that the subsidy for January will be the unadjusted subsidy from the previous year,” the PSA said.
