The Congress of South African Trade Unions (COSATU) and Federation of Unions of South Africa (Fedusa) say the Government Employees Medical Scheme (GEMS) has agreed to withdraw a proposed 9.5% medical aid contribution increase imposed on workers.
The unions say following protests against the increase, GEMS has now approved a revised 7.5% increase, which is expected to take effect from 1 July 2026, subject to approval by the Council for Medical Schemes.
President of Democratic Nursing Organisation of South Africa (DENOSA) and governor of COSATU’s Joint Mandating Committee, Simon Hlungwani, says the development is a result of pressure from organised labour.
“The victory we want to share with public service workers and our members today is that GEMS has been forced to retreat from the 9.5% increase. The immediate triumph secured by workers is a two-percentage point reduction from the increase that had been imposed on public servants. That movement did not come as a favour, it did not come as a public relations gesture on the part of GEMS, but it came because united organised labour applied pressure through the proper political, legal, bargaining and mobilisation channels,” Hlungwani says.
He says discussions are not yet concluded.
“We must be clear. GEMS has not agreed to every demand placed before it, and the revised increase remains subject to regulatory approval by the Council for Medical Schemes,” Hlungwani adds.
The unions say they will continue engaging with the scheme on issues affecting public sector workers.
FEDUSA threatens shutdown over GEMS fee increase
🚨MEDIA BRIEFING STATEMENT
COSATU AND FEDUSA GEMS CAMPAIGN pic.twitter.com/quTiX4J4IT— FEDUSA (@FEDUSAMedia) May 7, 2026
#GEMS contribution increase that was imposed on workers at a time when wages are under pressure and household costs continue to rise, declares #COSATU and FEDUSA at a presser underway in Centurion @SAfmRadio @HealthZA @pscbcnews @thedpsa @ParliamentofRSA pic.twitter.com/emsiXOhVhG
— @COSATU Today (@_cosatu) May 7, 2026
