Congress of South African Trade Unions in KwaZulu-Natal (COSATU KZN) convened a meeting last week with its Public Service Affiliated Unions to deliberate on the unilateral and unreasonable 9.8% increase in member contributions for 2026 announced by Government Employees Medical Scheme (GEMS).

The mandate from workers is clear and unequivocal, NO to the 9.8% ridiculous increase of GEMS membership contributions. This increase comes at a time when public servants are already suffocating under the escalating cost of living, stagnant wages, rising food and transport costs, and relentless economic pressures. A 9.8% increase is not only unjustifiable; it is insensitive and punitive to workers who keep the public service functioning under extremely difficult conditions.

It has emerged that all our affiliated unions within the Public Service Coordinating Bargaining Council (PSCBC) have unanimously rejected this increase. They have correctly cited the severe financial strain this decision places on members, public servants and their families in an already depressed economic climate. It happens at a time when public servants are receiving only 5.5% salary adjustment in 2025/26, and just 4% in 2026/27, and while inflation sits at approximately 3.5% and government subsidy increases are limited to 4.5%.

Our unions were concerned that from January 2026, members are paying 9.8% more which constitutes a staggering 23.3% increase over two years noting the 13.4% increase last year. This means that medical aid costs are rising far above wages and inflation. It is a real wage erosion and a direct attack on workers’ take-home pay.

The Council for Medical Schemes recommended an increase of 3.3% for 2026. GEMS ignored this guidance and imposed an increase 6.5 percentage points higher, demonstrating a disturbing disregard for workers.

Such decisions, with far-reaching implications for millions of employees and their dependents, cannot be imposed unilaterally to labour. They require meaningful consultation and consensus within the PSCBC structures, as mandated by its founding framework. Even the PSCBC has condemned the unilateral announcement of the 9.8%

increase and has called on GEMS to return to the negotiating table without delay to seek a fair, affordable, and sustainable solution acceptable to all parties. COSATU KZN fully supports this assertion.

The call for the above is in consideration that when GEMS was established through PSCBC Resolution 1 of 2006 its mandate was clear, to:

§  Expand access to healthcare, particularly for lower- and middle-income public servants

§  Provide affordable, sustainable, and cost-effective medical cover

§  Promote equity, risk pooling, and social solidarity within the public service.

As a closed and compulsory scheme for public servants, GEMS carries a special responsibility to protect workers—not to burden them.

The arrogance and unilateral conduct displayed by GEMS represent a serious setback to the broader efforts to realise universal, equitable healthcare in South Africa, including the aspirations embodied in the National Health Insurance framework. Institutions that are meant to promote solidarity and affordability cannot operate in ways that deepen inequality and financial distress.

Our unions have resolved to challenge this decision through all available avenues. In responding to this, COSATU KZN will lead a coordinated protest action on Thursday, 26 February 2026, at Prince Mshiyeni Memorial Hospital.

Lunch-hour pickets at all institutions, departments, facilities, and service centres across the province will take place during the submission of the memorandum.

This is a disciplined, democratic, and united campaign aimed at defending workers from economic suffocation.

We call on all public servants and workers at large to participate in their numbers in this protest action.

We call on all affiliated unions to mobilise members thoroughly and decisively.

Our members and workers are called to stand united against unilateralism and economic suppression.

We shall not allow workers to be forced to choose between healthcare and survival.

We demand fairness, affordability, and genuine engagement.

An injury to one is an injury to all.

Issued by COSATU KwaZulu Natal

For Enquiries: Edwin Mkhize

082 399 7756 / 076 522 8839

edwin@cosatu.org.za