By Matshediso Selebeleng

Unions say back-to-back contribution hikes are swallowing modest wage increases and deepening financial strain on public servants.

The National Education, Health and Allied Workers’ Union (NEHAWU) in the Northern Cape has called on the Government Employees Medical Scheme (GEMS) to reconsider its latest contribution increases, warning that the hikes are pushing public servants deeper into financial strain. The medical aid scheme reportedly increased contributions by 13.4% in 2025. A further proposed increase of 9.8% is set to take effect in January, followed by another 9.5% adjustment from 1 April. NEHAWU members at Klerksdorp Hospital joined a nationwide picket on Tuesday, staging a lunchtime protest outside the facility in solidarity with workers across the country opposing the increases. Employees say the scheme was initially introduced as an affordable medical aid option for government workers, but claim it has since become one of the most expensive. “Recently, it’s become one of the most expensive medical aids. As the union, we are tired of GEMS’ operations and we are calling on board members, including management, to think of the employees because some of them are not earning that much,” said Tshepo Zwem, chairperson of NEHAWU’s Klerksdorp branch. Zwem added that demonstrations will continue until GEMS management agrees to engage with unions and reconsider the proposed increases, arguing that many workers simply cannot afford the higher contributions. According to reports, GEMS was established as a social solidarity medical scheme through PSCBC Resolution 1 of 2006 and was never intended to operate as a commercial enterprise. Other unions, including the Congress of South African Trade Unions (Cosatu), Public Servants Association (PSA), and South African Onderwysers Unie (Saou), have also expressed dissatisfaction, describing the increases as “unjustifiable.” The unions argue that the contribution hikes come at a time when public servants are already grappling with rising living costs, mounting household debt, and stagnant real wage growth. Public servants received a 5.5% salary increase for the 2025/2026 financial year and are set to receive a further 4% increase for the 2026/2027 financial year, effective April 2026 — adjustments unions say are being swallowed up by escalating medical aid costs. “We are here to say we don’t want the proposed increment; we want them to give us affordable GEMS medical aid,” Zwem said.