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SADTU Draws a Line as GEMS’ Medical Aid Cut Fails to Ease 2026 Cost Fears
For thousands of teachers across South Africa, January 2026 is already shaping up to be expensive. This week, the South African Democratic Teachers’ Union confirmed it has rejected a revised proposal from the Government Employees Medical Scheme to slightly soften a planned medical aid increase.
At the heart of the dispute is a marginal adjustment. GEMS has proposed reducing its originally announced 9.8 percent contribution hike to 9.5 percent. For SADTU, that shift is simply not enough and does little to calm deeper worries about how the scheme is run and how future costs are being calculated.
A smaller increase that changes very little
According to the union, GEMS has submitted the revised figure to the Council for Medical Schemes, with approval expected by February 2026. On paper, the change may look like a concession. On the ground, SADTU says it does not meaningfully protect members.
Labour representatives have rejected both the original and revised proposals, arguing that the numbers fail to deal with what they describe as serious long-term planning and governance issues. One of the main frustrations is a lack of transparency around how income and expenditure projections are put together, particularly for the years beyond 2026.
Why teachers are uneasy
Medical aid costs already take a noticeable bite out of public sector salaries, especially for educators supporting families on a single income. On staff WhatsApp groups and education forums, many teachers have expressed anger that a reduction of 0.3 percent is being presented as relief while broader financial questions remain unanswered.
SADTU says projections for future years are unacceptable and that insufficient financial detail has been shared to justify even the reduced increase. Without that information, unions argue they cannot properly test whether the hike is reasonable or avoidable.
The January problem no one can ignore
One of the most pressing concerns is timing. Even while the revised proposal sits with regulators, SADTU warns that members will still feel the full impact of the original increase. The 9.8 percent hike is set to be implemented from January 2026, meaning households will be paying more before any regulatory decision is finalised.
For many teachers, this fuels a sense that the process favours administration over members, especially during a period when food, transport, and school-related costs continue to climb.
Governance, reserves and accountability
Beyond the percentage itself, the union has also challenged GEMS’ financial assumptions. SADTU argues that the current 25 percent reserve ratio used by the scheme is too high for a closed government medical aid scheme. Labour has asked for alternative scenarios based on a lower reserve ratio, which they believe could ease pressure on monthly contributions.
There are also renewed calls for tighter cost control. These include aligning board member remuneration with senior government manager salaries and full disclosure of legal costs incurred by the scheme. For union members, these demands speak to a broader concern about accountability and value for money.
What happens next
SADTU says further engagement is planned, with a schedule of meetings expected in 2026 between GEMS and the Public Service Coordinating Bargaining Council. The hope is for more productive discussions that go beyond headline percentages.
GEMS, for its part, has maintained that the contribution adjustment is necessary to ensure access, value, and stability for its more than 2.4 million beneficiaries. Whether that reassurance is enough to calm teacher frustration remains to be seen.
For now, educators are bracing themselves for higher deductions and watching closely to see whether talks in the new year bring real change or simply more of the same.
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Source: IOL
Featured Image: Medical Aid Quotes
