Unions including FEDUSA and Popcru criticise a 9.5% increase in Government Employees Medical Scheme contributions, which outpaces salary adjustments and worsens the cost-of-living crisis for public servants. Leaders highlight struggles with healthcare affordability amid rising living costs and workplace pressures. The concerns were raised during Workers’ Day events on May 1, 2026.
FEDUSA president Godfrey Selematsela stated that workers face terrible working conditions, psychosocial issues, mental health challenges, and retrenchments leaving families hungry. He noted salary increases of around 4% are outpaced by rises in food, transport, and electricity costs. “Workers are facing terrible working conditions. You’ve got the psychosocial issues that are affecting workers, some workers have got mental challenges and all these things are arising from the workplaces,” Selematsela said.
Public Servants Association of South Africa Secretary Christopher Nqeketho described the 9.5% medical aid increase as significant, especially with low salary adjustments. “This 9.5 is really not really a small amount, given the fact that, of course, it’s not the first time that jobs have really increased,” Nqeketho said. He mentioned protests earlier in the year across provinces over impacts on lower and middle-income workers' food and transport costs.
Popcru president Thulani Ngwenya detailed Gems contribution rises: 13.4% in 2025, then 9.8% in January 2026 adjusted to 9.5% from April 2026, totalling 23.2% over two years. Public servants received about 5.5% wage increases in 2025/26 and 4% in 2026/27, with inflation at 3–4%. Ngwenya said this forces choices between medical cover and food, amid Gems paying R180-million daily in claims for over 2.3 million beneficiaries.
Ngwenya called for a united front across Cosatu and FEDUSA to address escalating contributions, inadequate subsidies, lack of transparency, and healthcare commodification. Popcru views Gems' founding vision of affordable care for public servants as under threat. The Commission for Conciliation, Mediation and Arbitration reaffirmed commitment to fair dispute resolution with unions like FEDUSA.