New medical aid subsidy for government employees

During February 2016, the Minister for the Public Service and Administration determined that the employer subsidy for GEMS members be adjusted with the average Medical Price Index (MPI) with effect from 1 January 2016.

In as far as it affects medical assistance relating to in-service employees who are current members on GEMS, the following provisions apply:

• The subsidy for a single principal member is increased from R925.00 to R1008.00.
• For a principal member with 4 dependants or more, the subsidy is limited to a maximum of R3865.00 per month.
• Casual employees are excluded from receiving the subsidy however, employees who are on fixed term contracts for a period of 6 months or longer will continue to receive the subsidy.
• Employees who terminated their membership with GEMS on or after 1 July 2006 will not be eligible for the subsidy unless they re-join GEMS as a member.
• The department will continue to pay the subsidy to GEMS for employees during unpaid leave, provided that the employee continues to pay their monthly contribution.

The resolution has also introduced a new post-retirement medical assistance dispensation for all former employees who are on GEMS:

• The subsidy has increased from a maximum of R1850.00 to R2017.00 per month.
• Employees who retire while on the Sapphire option will continue to receive a 100% medical subsidy provided that the subsidy amount does not exceed R2017.00
• Retired members are responsible for full contributions of additional dependants if the contribution exceeds R2017.00.

The subsidy refunds will be implemented during March 2016 and backdated to January 2016. National Treasury and your employer (via Persal/your HR department) will process refunds with your March salary.

View the Determination and Directive on Medical Assistance for Employees in the Public Service issued by the DPSA.