It is now official…the Government Employees Medical Scheme (GEMS) has announced a further 2% reduction in member contribution increases for this year, effective from July 1, 2026.
GEMS Principal Officer, Dr Stan Moloabi said the decision upholds GEMS’ founding mandate of providing public service employees with equitable access to affordable, comprehensive, and high-quality healthcare benefits.
GEMS is South Africa’s largest restricted medical scheme, with over 890,000 principal members and more than 2.4 million dependants.
Dr Moloabi said: “Today, the scheme serves approximately 2.4 million beneficiaries, and their needs remain central to every decision taken.
“Member voices are embedded in the governance of the Scheme through elected Board representatives, structured engagement with organised labour, nationwide member roadshows, and dedicated service channels that ensure feedback is actively received and addressed.
“The decision announced today reflects our commitment to being responsive, transparent, and member centric. GEMS will continue to engage, listen, and act in ways that uphold our mandate and deliver sustainable value to our members.”
The scheme had initially communicated an average increase of 9.8% from 1 January 2026, which was later reduced to 9.5% from 1 February 2026.
Following a detailed review, Dr Moloabi said that GEMS is now able to further lower the increase to the weighted average of 7.5%, providing additional relief to members while safeguarding the Scheme’s long-term sustainability.
This decision to adjust member contribution increase follows a structured empirical review by the Board of Trustees, as well as constructive engagements with the Public Service and Administration Minister, Inkosi Mzamo Buthelezi, organised labour, and other key stakeholders.
In determining this contribution increase adjustment, the GEMS Principal Officer further said that the Board of Trustees has carefully considered actuarial advice, sound financial and governance principles, including improving reserve levels toward the regulatory benchmark.
“These measures are essential to safeguard the long-term sustainability of member benefits and ensure the continued financial health of the Scheme.
“GEMS will submit these contribution adjustments to the Council for Medical Schemes (CMS) for formal approval.
“As a Scheme, we are acutely aware of the pressure that rising costs place on our members and their families. This further reduction reflects our commitment to act in members’ best interests, while ensuring the Scheme remains sustainable for the long term.
“Having due regard to the prevailing high benefit utilisation environment, GEMS has implemented a range of initiatives to contain costs, manage claims effectively, and improve operational efficiencies.
“These efforts contributed positively toward the Scheme’s financial position and operational efficiency. Importantly, this progress has created an opportunity to return value directly to members through the further reduction in contribution increases.
“By reinvesting efficiencies back into the Scheme, GEMS ensures that members experience real value while maintaining access to quality healthcare,” he said.
While the adjustment provides meaningful short-term relief, GEMS will continue to closely monitor claims trends and healthcare cost pressures, while actively enhancing interventions to address fraud, waste, and abuse.
According to scheme, member contribution adjustments are largely influenced by medical inflation factors, such as rising healthcare provider tariffs, medical technology, medicine prices, and increased utilisation of healthcare services.
Since its establishment in 2005, GEMS has remained focused on improving access to healthcare for public service employees and their families.
