Minister Inkosi Mzamo Buthelezi on adjustment of GEMS contribution increases for 2026

The Minister for the Public Service and Administration notes the recent announcements by the Government Employees Medical Scheme (GEMS) and organised labour regarding the adjustment of the 2026 contribution increase.

The Minister wishes to place on record that the period leading up to this outcome was characterised by intensive engagements and, at times, a clear impasse between the Scheme and organised labour. On the one hand, GEMS was required to uphold its fiduciary responsibility to ensure the long-term financial sustainability of the Scheme. On the other hand, organised labour raised legitimate and urgent concerns regarding affordability and the immediate financial pressures facing public servants.

These positions, while both valid, resulted in a deadlock that required deliberate and structured intervention.

Recognising the potential impact on public servants and the broader stability of the Scheme, the Minister, in his capacity as the employer representative, undertook a series of facilitated engagements with GEMS and organised labour. These engagements were aimed at ensuring that neither sustainability considerations nor affordability concerns were pursued in isolation, but rather balanced in a manner that protects both the Scheme and its members.

Through this process, the Ministry worked to create a platform for constructive and solution-oriented dialogue, ensure that the concerns of workers were meaningfully ventilated and considered, and encourage the Scheme to re-examine its position within a broader socio-economic context.

The Minister is therefore encouraged that these engagements have culminated in a revised weighted contribution increase of 7.5%, reflecting movement from the initial position of 9,5% and providing measurable relief to members.

It is important to underscore that this outcome was not the result of a single process or perspective prevailing over another, but rather the product of facilitated convergence between parties whose positions had, at one point, significantly diverged.

The Ministry believes that this outcome demonstrates the value of active employer involvement in complex socio-economic matters, particularly where the interests of public servants, institutional sustainability, and public confidence intersect.

At the same time, the Minister acknowledges that the issues raised during this period, including affordability, governance, cost drivers, and transparency, remain matters requiring ongoing engagement and careful oversight. The Ministry will continue to work with all stakeholders to ensure that these matters are addressed in a structured and sustainable manner.

The Minister further emphasises that engagement between GEMS and organised labour must continue to evolve towards a more proactive, transparent, and collaborative model to prevent similar situations in the future.

The Ministry remains committed to safeguarding the interests of public servants while ensuring that institutions such as GEMS remain financially sound, responsive, and aligned to their founding mandate.

The Minister thanks all stakeholders for their participation in the engagements and urges continued cooperation in the interest of public servants and their families.

For further information, please contact:
Mr. Sakhikhaya Dlala: Deputy Director - Content and Media Liaison
Cell: 078 746 8169
E-mail: Sakhikhaya.Dlala@dpsa.gov.za  

#GovZAUpdates