The South African Democratic Teachers’ Union (SADTU) has firmly rejected the Government Employees Medical Scheme’s (GEMS) proposal to slightly lower the planned medical aid contribution increase from 9.8% to 9.5%. The South African Democratic Teachers’ Union (SADTU) has rejected a revised proposal by the Government Employees Medical Scheme (GEMS) to slightly reduce its planned medical aid contribution increase, saying the change does not address underlying financial and governance concerns. In an update, SADTU said GEMS had submitted a revised proposal to the Council for Medical Schemes (CMS) to reduce thepreviously planned 9.8% contribution increaseto 9.5%.
this change is subject to CMS approval by February 2026 Despite the revision, labour representatives from SADTU rejected both the original 9.8% and the revised 9.5% proposals. The union argued that the revised figure does not resolve what it described as deeper problems in the scheme’s long-term planning and disclosure. According to the update, labour maintains that “the projections for outer years are unacceptable” and that “GEMS has not disclosed sufficient financial information regarding income and expenditure”.
GEMS has not disclosed sufficient financial information regarding income and expenditure SADTU said this lack of detail made it difficult for unions to properly assess the justification for the increase, even at the reduced rate. While the revised proposal awaits regulatory consideration, SADTU warned that members will still feel the full impact of the original increase. The union stated that “in the interim, the original 9.8% increase will be implemented starting in January 2026”.
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in the interim, the original 9.8% increase will be implemented starting in January 2026 Beyond the contribution percentage itself, SADTU said the revised proposal failed to engage with labour’s concerns about financial assumptions. The union reiterated that “the current 25% reserve ratio assumption is too high for a closed government scheme” and confirmed that labour has requested alternative scenarios based on a lower reserve ratio. the current 25% reserve ratio assumption is too high for a closed government scheme
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