The Public Servants Association (PSA) has reported widespread concern among union members following a 13.4% increase in Government Employees Medical Scheme (GEMS) membership fees for 2025.

According to an article published by TimesLive, many members are now considering cancelling their policies, as the hike makes medical aid increasingly unaffordable, effectively reducing take-home salaries.

The PSA, along with other unions, opposed the increase during discussions at the Public Service Co-ordinating Bargaining Council (PSCBC), but GEMS has proceeded to implement the hike unilaterally.

Originally established nearly two decades ago to provide affordable and cost-effective medical cover for public servants, GEMS was designed with a higher subsidy than other medical aid schemes to encourage enrolment. However, the PSA alleges that this preferential treatment has led to the exploitation of its members, a claim GEMS denies.

The PSA expressed frustration, stating it never anticipated a situation where public servants would be forced to choose between essential needs, such as food and medical aid.

GEMS Principal Officer, Dr. Stanley Moloabi, defended the increase, stating that it was calculated based on projected healthcare funding needs for 2025. He explained that individual increases depend on factors such as salary bands, the number of dependents, and chosen coverage options, with detailed breakdowns communicated to members.

However, the PSA’s efforts to advocate for the rights of workers and ensure that healthcare reform does not come at the expense of their financial well-being have not stopped there.

In addition to concerns about GEMS, the organisation has voiced strong opposition to the government's proposal to impose an additional tax of R37,000 on every South African employee to fund the National Health Insurance (NHI).

In a statement issued on 9 January, the PSA strongly condemned the proposed tax, describing it as an undue financial burden on employees already struggling with the rising cost of living. While the PSA supports universal, affordable, and quality healthcare to address inequality, it warned that implementing the NHI without resolving critical challenges such as funding, staffing, and infrastructure would be disastrous.

The PSA noted that many healthcare institutions currently fail to meet the required standards for NHI implementation and cited chronic staff shortages as a significant barrier.
It has called on the government to explore alternative funding mechanisms for the NHI that do not disproportionately affect employees, urging meaningful dialogue among stakeholders to find a sustainable and equitable solution.


This story was compiled from various resources, including:

9 January 2025  |  EWN | PSA wants health minister to give clarity on NHI funding

9 January 2025 | Polity | The PSA strongly objects to increasing tax to fund the NHI scheme

17 December 2024 | TimesLive | Government employee's medical aid has become unaffordable, claims PSA


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