MEDIA STATEMENT: GEMS REQUESTS EXTENSION ON DEADLINE DAY AS FEDUSA HOLDS FIRM ON AFFORDABILITY DEMANDS

MEDIA STATEMENT: GEMS REQUESTS EXTENSION ON DEADLINE DAY AS FEDUSA HOLDS FIRM ON AFFORDABILITY DEMANDS

03 March 2026

The Federation of Unions of South Africa (FEDUSA) confirms that the Government Employees Medical Scheme (GEMS) has requested an extension to respond to the Memorandum of Demands handed over by thousands of public servants during the mass protest in Pretoria on 21 February 2026.

GEMS was required to provide a written response by today, 03 March 2026. Instead, on the last working day before the deadline, the Scheme wrote to FEDUSA requesting that the response date be extended to 13 March 2026, citing the “complexity and breadth” of the issues raised and the need to conclude internal processes.

We must place on record that the concerns raised in our Memorandum are neither new nor unexpected. They arise directly from contribution increases first implemented in January and adjusted on 1 February 2026, as well as from long-standing concerns around governance, affordability and the funding model of the Scheme. It is therefore concerning that the request for additional time came only at the eleventh hour.

FEDUSA has nonetheless acted responsibly and in good faith by granting a limited and final extension until Friday, 6 March 2026. This revised deadline is final. Public servants cannot be subjected to indefinite delays while contribution increases remain in place and household budgets continue to suffer.

In January 2026, GEMS announced a 9.8 percent increase, which was subsequently adjusted to 9.5 percent and implemented on 1 February 2026.

This follows a 13.4 percent increase in 2025. In just two years, contributions have escalated by more than 23%. These increases have come at a time when wage growth remains modest, and the broader cost of living crisis continues to erode take-home pay.

Our members are feeling the impact every month. Teachers, nurses, police officers and administrative staff are making difficult financial choices. Some are downgrading benefits. Others are questioning whether they can continue to afford meaningful cover.

Our demands remain unchanged.
We are demanding the withdrawal of the 9.5 percent increase and the development of an affordable contribution structure in consultation with organised labour. We are demanding full financial transparency, including administrative expenditure, outsourcing contracts, procurement arrangements and executive remuneration. We are demanding an independent forensic audit into governance and expenditure. We are demanding a review of the funding and reserve model, including the 25 percent reserve requirement, and we are insisting that GEMS return to its founding purpose as a social solidarity scheme for public servants.

Several processes are unfolding in parallel while we await GEMS’ feedback to our demands:
The review of PSCBC Resolution 1 of 2006, which established GEMS, has been formally tabled at the Public Service Coordinating Bargaining Council and engagements will commence this month. The Minister of Public Service and Administration has undertaken to engage organised labour following his meeting with the GEMS Board. A Section 77 application has been submitted at NEDLAC in preparation for potential mass protest action should meaningful progress not be achieved. Legal opinion is also being
sought on whether the recent increases can be challenged through the courts. FEDUSA is engaging through every available channel while maintaining pressure. Our fundamental belief is that public servants built this Scheme and sustain it through their monthly contributions – and it must serve them, not burden them.

END.