Fedusa, which is complaining about medical aid contribution increases, says the Government Employees Medical Scheme (Gems) has asked for more time to respond to a memorandum submitted by thousands of public servants after a February 21 protest.
Gems was required to provide a written response by Tuesday.
“Instead, on the last working day before the deadline, the scheme wrote to Fedusa requesting that the response date be extended to 13 March 2026, citing the ‘complexity and breadth’ of the issues raised and the need to conclude internal processes,” Fedusa said.
The unions’ federation said the concerns raised in its memorandum were neither new nor unexpected.
“They arise directly from contribution increases first implemented in January and adjusted on 1 February 2026, as well as from long-standing concerns around governance, affordability and the funding model of the scheme.”
Fedusa said it was concerning that the request for additional time came only at the eleventh hour.
“Fedusa has nonetheless acted responsibly and in good faith by granting a limited and final extension until Friday. This revised deadline is final.”
It said public servants cannot be subjected to indefinite delays while contribution increases remain in place and household budgets continue to suffer.
In January 2026, Gems announced a 9.8% increase, which was subsequently adjusted to 9.5% and implemented on 1 February 2026. This follows a 13.4% increase in 2025.
“In just two years, contributions have escalated by more than 23%. These increases have come at a time when wage growth remains modest, and the broader cost of living crisis continues to erode take-home pay.”
Fedusa said its members were feeling the impact every month.
“Teachers, nurses, police officers and administrative staff are making difficult financial choices. Some are downgrading benefits. Others are questioning whether they can continue to afford meaningful cover.”
Fedusa said its demands remained unchanged.
“We are demanding the withdrawal of the 9.5% increase and the development of an affordable contribution structure in consultation with organised labour.
“We are demanding full financial transparency, including administrative expenditure, outsourcing contracts, procurement arrangements and executive remuneration.”
Fedusa was also demanding an independent forensic audit into governance and expenditure.
“We are demanding a review of the funding and reserve model, including the 25 percent reserve requirement, and we are insisting that Gems return to its founding purpose as a social solidarity scheme for public servants.”
Fedusa said several processes were unfolding in parallel while it awaited Gems’ feedback to its demands.
It said the review of the Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 1 of 2006, which established Gems, has been formally tabled at the PSCBC and engagements would commence this month.
“The minister of public service and administration has undertaken to engage organised labour following his meeting with the Gems board.”
It said a section 77 application had been submitted at Nedlac in preparation for potential mass protest action should meaningful progress not be achieved. The section allows a union to notify Nedlac of a proposed protest action or strike over socio-economic issues.
Fedusa also said legal opinion was being sought on whether the recent increases could be challenged through the courts.
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