14.05.2026
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9.5% medical aid increase adds to public sector woes: FEDUSA

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The Federation of Unions of South Africa says this year’s Workers’ Day is being used for reflection rather than celebration. This as labour unions confront mounting challenges affecting public sector workers across the country.
FEDUSA, which represents more than 21 affiliates, is concerned about the impact of a 9.5% medical aid increase on workers’ take-home pay. They say the increase, linked to the GEMS medical aid scheme, is no longer sustainable and is worsening a broader cost-of-living crisis.
FEDUSA’s Gauteng rally was held at the Johannesburg Central Prison, South of Johannesburg as it marked Workers’ Day.

FEDUSA concerned about the increase in GEMS’ contribution

The Federation of of Unions of South Africa (FEDUSA) marks Workers’ Day across three provinces – Mpumalanga, the Free State and Gauteng. It raises concern about workers being exposed to horrible working conditions.

FEDUSA president, Godfrey Selematsela, says workers are battling psycho-social pressures and mental health issues linked to the workplace, while retrenchments continue to leave many families without income. He adds that salary increases of around 4% are being outpaced by sharp rises in food, transport and electricity costs, further straining households.

“Workers are facing terrible working conditions. You’ve got the psychosocial issues that are affecting workers, some workers have got mental challenges and all these things are arising from the workplaces. You’d have noticed that most of the employers they jump to the very same. Retention workers which for us it’s something that needs to be looked into to the extent that generally you see a lot of families going hungry because workers have been retrenched. On the other side, the economy is not favourable to the workers.”

Public Servants Association of South Africa Secretary, Christopher Nqeketho says a 9.5% medical aid increase, coupled with low salary adjustments, is worsening a broader cost-of-living crisis for lower and middle-income earners.

“This 9.5 is really not really a small amount, given the fact that, of course, it’s not the first time that jobs have really increased. We really went during the beginning of this year to demonstrate across all the provinces, just to demonstrate how really heavily affected by this. Most of the workers, in particular within your lower as well as middle wage, are really faced with the problem, for example, starting from the provision of the food services, your transport services.”

The Commission for Conciliation, Mediation and Arbitration says unfair dismissals remain the most common disputes reported, as it strengthens access through digital tools and in-person services.

It has reaffirmed its commitment to working with organised labour, including FEDUSA to ensure fair and accessible dispute resolution for workers.

Artificial Intelligence

FEDUSA says South Africa’s labour framework must urgently adapt to keep pace with economic pressures and the rise of artificial intelligence (AI).
Selematsela stresses that while AI is reshaping workplaces, it cannot replace the human element. He says workers must be reskilled and included in the transition, rather than displaced.

Selematsela is calling for stronger collaboration between employers and labour to ensure technological change does not come at the cost of jobs and worker dignity
“When food and transport are increased with an extra 10%, the hike did not match worker’s salaries which causes strain and is compromising to workers who are now struggling to make ends meet. We are calling all the employers and government to try and look into this.”

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