By Charmaine Ndlela
The Congress of South African Trade Unions (COSATU) and the Federation of Unions of South Africa (FEDUSA) have given the Government Employees Medical Scheme (GEMS) until May 6, 2026, to review its 9.5% contribution increase or face intensified worker action.
The ultimatum follows a meeting between organised labour and GEMS, where unions rejected the scheme’s justification for the increase, describing it as unaffordable for public servants.
In a joint statement, COSATU and FEDUSA said GEMS had failed to offer a meaningful solution during engagements.
“GEMS came to the meeting with explanations that do not shift the hardships faced by workers,” the unions said.
They criticised the scheme for relying on actuarial modelling, reserve requirements and industry comparisons to justify the hike, arguing this does not address underlying governance failures.
The 9.5% increase took effect on Feb. 1, 2026, with GEMS saying it is necessary to maintain financial
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