Public Service and Administration on increase to subsidy for employees on registered medical schemes

The Director-General of the Department of Public Service and Administration, Yoliswa Makhasi, is pleased to announce the adjustment of employer medical assistance for employees on the Government Employees Medical Scheme (GEMS) as well as all former employees belonging to a registered medical scheme by Medical Price Index (MPI) of 8.51 per cent with effect from January 1, 2021.

“The increase in the subsidy will go a long way in cushioning the recent increase on medical aid contributions for both current and former public servants which comes about as the country experiences tough economic conditions,” said Makhasi.

Public Service Co-ordinating Bargaining Council (PSCBC) Resolution 2 of 2015 provides for the adjustment of future medical subsidy for employees who are members of the GEMS and all former employees (pensioners) belonging to GEMS and other open schemes using the MPI which is the Consumer Price Index (CPI) used in the health industry.

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In terms of PSCBC Resolution, the employer subsidy for employees on GEMS will be adjusted annually in January of each year with the average annual MPI for a particular year starting from September of the particular year to August of the following year.

An employee belonging to or joining GEMS shall be eligible for 75 per cent of his or her total monthly medical contribution up to the maximum employer subsidy, based on the number of dependents registered.
A former employee belonging to a registered medical scheme shall be eligible for 75 per cent of his or her total monthly medical contribution up to the maximum subsidy.

Public service employees on salary level 1, 2, 3, 4 or 5 belonging to or joining GEMS on the Tanzanite One option (formerly Sapphire Option) are eligible for 100 per cent of the total monthly medical contribution, up to the maximum employer subsidy, provided the subsidy amount does not exceed the employee’s total monthly contribution to GEMS.

The maximum cap of the employee’s tax allowance, comprising of the monthly cap of R1 526 for principal member, R1 526 for the first dependant and R933 for each additional three (3) dependants will be R5 851.

Member profile:
1 January 2020, monthly employer subsidy- 1 January 2021, monthly employer subsidy

Single principal member
R1 406
R1 526
Principal member with one dependent
R2 812
R3 052
Principal member with two dependents
R3 671
R3 985
Principal member with three dependents
R4 530
R4 918
Principal member with four dependents
R5 389
R5 851

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