COSATU and FEDUSA Demand Review of GEMS Contribution Increase

What’s Happening?

The Government Employees Medical Scheme (GEMS) announced a 9.5 % rise in monthly contributions for public‑sector workers. Two major unions, COSATU and FEDUSA, say the increase is too high and have asked GEMS to reconsider.

Why the Unions Are Concerned

Affordability Issues

Workers argue that a 9.5 % jump makes health care harder to afford, especially when salaries aren’t rising at the same pace.

Principle of Social Solidarity

GEMS was created as a shared‑cost system to protect government employees, not to act like a private insurance company. The unions believe the scheme should not pass its financial problems onto members by raising contributions while cutting benefits.

Calls for Better Use of Rules

The unions suggest GEMS look at regulatory options, such as asking the Council for Medical Aid Schemes for relief from the 25 % reserve requirement, instead of using compliance as an excuse for higher fees.

Union Demands

A Formal Review

COSATU and FEDUSA have given GEMS until **May 6, 2026** to submit a detailed response that directly addresses the 9.5 % increase.

Regular Engagement Framework

They want a memorandum of understanding that sets up:

• Executive‑level meetings at least twice a year.
• A PSCBC working committee to oversee ongoing discussions.

This structure aims to prevent surprise contribution hikes or benefit changes in the future.

GEMS’ Position So Far

In a recent meeting, GEMS defended the increase, citing rising medical costs and the need to maintain scheme solvency. The unions rejected this justification, calling the rise “excessive, unfair and unsustainable.”

What Comes Next?

If GEMS does not provide a satisfactory response by the deadline, the unions warn they may consider stronger actions, including possible workplace mobilizations or legal steps, to protect members’ interests.

Conclusion

The standoff between COSATU/FEDUSA and GEMS highlights a broader debate about how public‑sector health schemes should balance financial sustainability with affordability for workers. With a clear deadline set for May 6, 2026, both sides now have a defined window to negotiate a solution that keeps health coverage fair and accessible for all government employees.