REJECT THE GEMS CONTRIBUTION HIKE!
PEU Stands with Organised Labour Against Unfair and Unaffordable Increases
By: Office of the General Secretary
Circular No.: GS/10/2026
Date: 17 February 2026
The Professional Educators’ Union (PEU) wishes to inform all members of a critical development affecting every public servant who is a member of the Government Employees Medical Scheme (GEMS). We write this article to formally communicate our position, the rationale behind it, and the planned programme of action regarding the proposed contribution increases for 2026.
PEU joins all Trade unions represented at the Public Service Coordinating Bargaining Council (PSCBC) in firmly and unequivocally rejecting the decision by GEMS to implement contribution increases of:
- ❌ 9.8% from January 2026
- ❌ 9.5% from April 2026
These back-to-back increases are unprecedented, economically unjustifiable, and completely out of touch with the financial realities faced by public servants.
2. THE UNSUSTAINABLE BURDEN ON PUBLIC SERVANTS
2.1 A Pattern of Excessive Increases
This is not an isolated incident. These proposed increases follow a staggering 13.4% increase in 2025. When viewed together, public servants are facing cumulative increases that far exceed:
- Salary adjustments of 5.5% and 4% over the same period
- Current inflation levels
- The 3.3% guideline recommended by the Council for Medical Schemes
2.2 Erosion of Real Income
The growing disparity between medical scheme contributions and salary adjustments is eroding workers’ real income. Many public servants are now being forced to make impossible choices between:
- 🏥 Accessing healthcare
- 🍲 Putting food on the table
- 🏠 Paying rent or bond instalments
- 📚 Covering children’s educational expenses
This is unacceptable for a medical scheme established specifically to serve public servants.
3. WHY WE SAY NO: THE CASE AGAINST GEMS
3.1 Economically Unjustifiable
The proposed increases bear no rational relationship to economic realities. At a time when public servants are struggling with the rising cost of living, GEMS expects members to absorb contribution hikes totalling nearly 20% within four months.
3.2 Socially Regressive
These increases disproportionately affect lower-income members, particularly those on the Tanzanite option—the very members who can least afford additional financial pressure. Unilateral benefit changes have further worsened affordability for this vulnerable group.
3.3 Governance Concerns
Organised labour has raised serious concerns about governance and operational inefficiencies within GEMS, including:
- High administrative costs that are not benchmarked against industry norms
- Continued outsourcing of core functions at significant expense
- Lack of transparency in financial decision-making
- Executive remuneration practices not aligned with public service norms or the scheme’s social solidarity mandate
3.4 Inadequate Government Subsidy
The government subsidy for medical scheme contributions is currently inadequate to cushion members against these excessive increases. GEMS failed to align its increases with the 3.3% guideline recommended by the Council for Medical Schemes.
3.5 No Meaningful Consultation
Despite the profound impact these increases will have on members, organised labour was not meaningfully consulted. This contravenes the principles of social dialogue and collective bargaining that underpin our labour relations framework.
OUR DEMANDS
PEU, together with other trade unions, demands:
| # | Demand |
|---|---|
| 1 | Immediate withdrawal of the contribution increases for 2026 |
| 2 | A forensic audit into GEMS’ governance structures and finances |
| 3 | Improved transparency in all decision-making processes |
| 4 | Comprehensive reforms to protect members and ensure affordability |
| 5 | Meaningful consultation with labour on all matters affecting members |
| 6 | Alignment of increases with economic realities and salary adjustments |
Mass Demonstration
DATE: Saturday, 21 February 2026
TIME: 09h00 – 12h00
VENUE: GEMS Offices,
124 Mercy Avenue,
Melyn Main Precinct,
Waterkloof Glen Extension 2,
Pretoria, Gauteng
Dress Code
Members are respectfully requested to be clothed in the colours and regalia of PEU on Saturday. Let us show unity and strength through our collective presence.
Transport Arrangements
Travelling arrangements to the venue will be communicated to all members in due course through:
- Branch structures
- SMS/WhatsApp notifications
- PEU website and social media platforms
What You Can Do
| Action | How to Do It |
|---|---|
| Attend the protest | Block your calendar for 21 February 2026, 09h00–12h00 |
| Spread the word | Inform fellow PEU members and public servants |
| Wear PEU colours | Show unity through our union regalia |
| Share your story | Tell us how the increases affect you |
| Engage on social media | Use hashtags: #HandsOffOurHealthcare #GEMSMustListen #PEUStandsUnited |
