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SADTU has strongly opposed the proposed 9.8% medical aid contribution increase by the Government Employees Medical Scheme (GEMS), which is set to take effect on 1 January 2025. During a special sitting of the Public Service Coordinating Bargaining Council (PSCBC) with GEMS on 18 December 2025, the union voiced concerns over affordability and fairness for public servants.
The GEMS Board stated that the increase was based on actuarial advice and deemed the only viable option. A slightly lower 9.5% increase could be considered from February 2025, depending on regulatory approval. However, SADTU and labour representatives rejected this outright and called for further consultations.
Key Proposals from the PSCBC Meeting
The PSCBC and labour representatives proposed several alternative steps instead of the 9.8% increase:
- Formally ask the Council for Medical Schemes (CMS) to intervene.
- Review the 25% reserve requirement, which could help prevent future hikes.
- Explore legal channels to lower the reserve level for closed schemes like GEMS.
- Submit cost-containment proposals to GEMS, such as:
Proposed Cost-Cutting Measures
| Measure | Description |
|---|---|
| Reduce admin costs | Streamline internal operations |
| Freeze executive salary increases | Halt increases for senior management |
| Lower Board fees | Redirect savings to members |
| More accurate actuarial reviews | Ensure fair, data-driven projections for future pricing |
GEMS has agreed to conduct further actuarial reviews in the coming week to address stakeholder concerns and explore affordability options.
Official Documents for Further Reading
- GEMS 2025 Benefit Design & Budget Considerations
- PSCBC/GEMS Contribution Increase Consultation – 18 Dec 2025
- Public Service & Administration Circular on Medical Subsidy Adjustments
