MEDIA STATEMENT
09 January 2026
SADTU STATEMENT ON THE ADJUSTMENT OF EMPLOYER MEDICAL SUBSIDY FOR GEMS MEMBERS
The South African Democratic Teachers’ Union (SADTU) is outraged that the 4.5% employer medical subsidy adjustment will not take effect in January 2026 but will instead be implemented from 1 February 2026.
The Minister for Public Service and Administration, in terms of section 3(5)(a) and 5(6)(b) of the Public Service Act, 1994, (as amended), has approved the following subsidy adjustments:
- 4,5% for the period 1 January 2026 to 31 March 2026
- Thereafter, an additional 0.5% be implemented from 1 April 2026 to 31 March 2027.
Meanwhile, SADTU members are bearing the full brunt of the 9,8% medical aid contribution increase which was implemented in January 2026 despite the objection of labour unions at the Public Service Co-ordinating Council (PSCBC). This is happening while the employer’s portion will only be implemented in February 2026.
The employer has, over several years, turned it into a norm not to pay the subsidy concurrently with the annual medical aid increase in January. SADTU is calling for an immediate end to this practice which negatively affects members, particularly during the financially demanding month of January.
At the last National Executive Committee meeting held in December 2025, SADTU resolved to engage the Minister of Public Service and Administration on this matter. SADTU is still actively pursuing this engagement and will continue to explore all available avenues to ensure that the 9,8% increase is reduced.
Further, the Union will explore possibilities of allowing members to join medical aids of their choice while keeping the same subsidy benefit from the employer. In the first place, SADTU reiterates that it never signed the PSCBC resolution in 2006 which led to the establishment of the Government Employee Medical Scheme (GEMS) as a closed medical scheme for public service employees and their dependents.
We believe the moves by some officials in government are deliberate to maintain the argument that private is better than public. GEMS was meant to be a seamless move, testing ground towards achieving a National Health Insurance in our country. This attitude by government works against the very same intention to establish a cheap and reliable health system for all. Healthcare cannot be for profit. We therefore call for the full funding of healthcare to ensure it is not used for profit.
ISSUED BY: SADTU Secretariat