Pretoria – The Government Employees Medical Scheme (GEMS) says it has demonstrated responsiveness to its members by reducing the initial 2026 contribution increase from a weighted average of 9.8% to 9.5%.
In addition, the Scheme on Saturday, 8 May 2026, announced that it was now “processing a further application to reduce this 9.5% to 7.5% effective 1 July 2026 (calculated with 31 December 2025 contribution as a base), subject to formal approval by the Council for Medical Schemes (CMS) as the Regulator”.
In a statement made available to The Bulrushes, GEMS said it welcomes the outcome of the LRA Section 77 application, which was brought before NEDLAC by FEDUSA (Federation of Unions of South Africa).
The Scheme acknowledges the constructive engagement facilitated through the NEDLAC process, which provided an important platform for stakeholders to raise concerns relating to healthcare affordability and the broader pressures facing members.
GEMS participated in the process as a respondent to the LRA Section 77 application.
Furthermore, GEMS stated that it appreciates the opportunity “for continued engagement” on matters affecting members and the sustainability of healthcare funding within the regulated medical schemes environment.
In its ruling, the NEDLAC (Standing Committee) indicated that the matter did not fall within the scope contemplated under Section 77 of the Labour Relations Act for protected socio-economic protest action.
GEMS Principal Officer, Dr. Stan Moloabi, stated, “While we encourage stakeholders to raise their concerns, we believe it is important that this matter is approached in a balanced and constructive manner that keeps the interests of members and the public at the centre.
“While this matter is between the respective parties involved, our focus remains on protecting members and ensuring that the affordability pressures facing the public are not further intensified.
“As GEMS, we remain committed to constructive engagement that seeks practical and sustainable solutions while safeguarding the long-term interests of members.”
The scheme further reaffirmed that its primary responsibility remains ensuring that members continue to access quality healthcare benefits in a financially sustainable manner.
“Every decision taken by the Scheme requires a careful balancing of affordability, benefit protection, financial sustainability, and regulatory obligations,” said Dr. Moloabi.
“Our objective remains to minimise the financial burden on members while ensuring the continued viability and integrity of the Scheme for current and future beneficiaries.”
In the statement, GEMS further emphasised that contribution decisions are made within a regulated framework that must comply with the Medical Schemes Act.
“This framework considers factors such as medical inflation, utilisation trends, solvency requirements, and the need to maintain comprehensive benefits for members,” GEMS said.
The Scheme reiterated its commitment to ongoing engagement with organised labour, the regulator, the employer, and all relevant stakeholders in pursuit of equitable, sustainable, and member-centred healthcare solutions.
Earlier this week, the Public Servants Association (PSA) said it welcomes the decision by GEMS to revise the weighted member-contribution increase from 9.5% to 7.5%, effective from 1 July 2026, subject to approval by the Council for Medical Schemes.
“This outcome follows sustained pressure and intervention by organised labour, including engagements with the GEMS Board of Trustees, submission of memoranda, protest action, and escalation through statutory processes,” the union said.
Although the PSA notes the reduction as a positive development, the Union said it remains concerned that employees have already suffered greatly from January to date.
The PSA further emphasises that several substantive issues raised with GEMS remain unresolved.
These include concerns relating to governance failures, high administrative and outsourcing costs, fraud and claims leakages, benefit design decisions, and inadequate consultation with members before major financial decisions are implemented.
