18 November 2025
The Federation of Unions of South Africa (FEDUSA) and its public sector affiliated unions reject the proposed 9.8 percent annual increase in GEMS member contributions for 2026 in the strongest possible terms. We cannot accept another year in which workers are expected to pay more for the same stagnant benefits, while the scheme continues to sidestep accountability and meaningful consultation.
The federation is deeply troubled that GEMS intends to repeat this excessive increase every year until 2029. To describe this as a “single digit” adjustment is misleading and dismissive of the reality faced by workers. These increases are nearly double digit. They far exceed CPI. They are well above anticipated wage adjustments of 4 to 5 percent. For workers, this is not an administrative matter. It is a direct attack on household stability and the right to dignified healthcare.
It is unacceptable that GEMS tabled these increases in a meeting held just one day before public communication was due. This signals a process designed to inform rather than consult, and it shows disregard for the role of collective bargaining structures that are meant to protect workers from exactly this kind of unilateral decision making. Concerns raised within the Joint Working Committee are valid and serious. The process was not completed, yet the decision was already pushed forward.
GEMS confirmed in its own briefing that there will be no improvement in benefits for 2026. Workers are being asked to pay significantly more while receiving absolutely nothing additional in return. Explanations about claim histories, administrative burdens or maintaining reserve ratios cannot continue to justify annual increases without any corresponding improvement in service or value. The system is failing, and workers are being asked to shoulder the cost of that failure.
Adding to this frustration is the fact that some workers received information about the increases days before GEMS’ official communication. This points to ongoing governance and communication weaknesses that must be addressed urgently. Accuracy and transparency are basic responsibilities in a compulsory scheme environment.
FEDUSA is clear. Workers cannot be trapped in a medical aid system that increases contributions year after year while wages lag behind. Workers cannot continue to sacrifice food, transport, school fees and basic household needs in order to maintain medical cover that is becoming unaffordable. Healthcare access is a right, not a privilege reserved for those who can withstand constant financial pressure.
FEDUSA therefore demands the following:
- Immediate withdrawal of the proposed 9.8 percent increase for 2026 and all forward projections.
- A full and independent forensic review of all cost drivers, including administrative inefficiencies and governance gaps.
- An end to last minute, superficial engagements that reduce consultation to a formality.
- Protection of workers’ right to choose their medical scheme without penalty or manipulation of the employer subsidy system.
- A national intervention on the affordability of healthcare, as workers are clearly at breaking point.
FEDUSA is not prepared to allow healthcare costs to outpace wages year after year while no structural reforms are implemented. We will challenge every attempt to burden workers with the consequences of poor planning, weak oversight and rising inefficiencies.
The federation stands firm in its belief that these increases must be stopped. The process must be corrected. Workers must be placed at the centre of decision making.
If GEMS intends to overhaul its finances, it must not do so on the backs of workers.
END.