Teachers and other public service workers across the country are celebrating an important victory after the Government Employees Medical Scheme (GEMS) announced that its proposed contribution increase will be further reduced.

The new announcement brings the average increase to 7.5%, after GEMS initially announced an increase of 9.8%.

After pressure from unions, it was first adjusted to 9.5% before further negotiations and protests led to the latest reduction.

The South African Teachers Union (SAOU) described the announcement as a huge relief for teachers, especially in a time when public service workers are already under severe financial pressure due to rising fuel and food prices.

According to Paul Sauer, CEO of the union, the 4% salary increase that was introduced in April was insufficient to absorb the sharp increase in medical scheme contributions.
In 2025, the average increase in GEMS contributions already stood at 13.5%, which caused great concern among members.

The union said GEMS pointed out during the previous information sessions with unions that the 2026 increases will be significantly lower. That is why it came as such a shock when the scheme announced a near double-digit increase.

“Unions then pressured GEMS through several interactions and peaceful marches. We were a part of the protests and argued that the scheme placed its members under unfair financial pressure,” Sauer explained.

It has been argued that public service workers were virtually obliged by collective agreement to belong to GEMS if they wished to receive state subsidies for medical schemes.

This means that many workers had limited alternatives when large contribution increases were announced.

The SAOU believes the decrease to 7.5% is a victory because GEMS were originally created to offer affordable medical benefits to public service workers and not be a profit-driven institution.

Sauer said, “The current economic climate makes it impossible for many teachers to choose between basic living costs and medical coverage. That is why a closed medical fund, such as GEMS, must act responsibly and be sensitive to its members’ financial realities.

He thanked members for their support and participation in the process, and promised to keep on fighting for the protection of public service workers’ rights and benefits.

Do you have more information about the story?

Please send us an email to bennittb@rekord.co.za or phone us on 083 625 4114.

For free breaking and community news, visit Rekord’s websites: Rekord East

For more news and interesting articles, like Rekord on Facebook, follow us on Twitter or Instagram or TikTok or WhatsApp Channel