GEMS cuts 2026 contribution increase to 7.5% amid pressure from unions and members

The Government Employees Medical Scheme (GEMS) has announced a reduction in its 2026 contribution increase from 9.5% to 7.5%, responding to pressure from labour unions and members. The Government Employees Medical Scheme (GEMS) has announced a further reduction in its 2026 contribution increase, lowering the weighted average adjustment from 9.5% to 7.5% afterprotest action by labour unions. The revised increase will take effect from1 July 2026, pending approval by the Council for Medical Schemes (CMS).

The Scheme had initially announced an average contribution increase of 9.8% from 1 January 2026, before reducing it to 9.5% from 1 February. But the move resulted in fierce backlash from members and labour unionswhich said the increase was unsustainable for government workers. COSATU and FEDUSA accused the Scheme of placing an unfair financial burden on public servants already struggling with rising living costs.

GEMS said the latest reduction was made possible through cost-containment measures, improved operational efficiencies and ongoing financial management interventions. “As a Scheme, we are acutely aware of the pressure that rising costs place on our members and their families,” said GEMS principal officer Dr Stan Moloabi. “This further reduction reflects our commitment to act in members’ best interests, while ensuring the Scheme remains sustainable for the long-term.” The labour unions welcomed the reduction earlier on Thursday, describing it as a victory achieved through worker mobilisation, protest action and negotiations.

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GEMS said the Board of Trustees had considered actuarial advice and the need to strengthen reserve levels toward the regulatory benchmark while balancing affordability concerns. The Scheme added that healthcare inflation, increased utilisation of healthcare services, higher medicine prices and rising provider tariffs continued to place strain on medical schemes across the sector.

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