2016 subsidy increase

During February 2016, the Minister of Public Service and Administration has amended and determined that employer subsidy for GEMS members be adjusted according to the average Medical Price Index (MPI) 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 to R 1 008.
• For a principal member with 4 dependants or more, the subsidy is limited to a maximum of R 3 865 per month.
• Casual employees are excluded from receiving the subsidy; however, employees who are on fixed-term contracts for a period of 6 months and longer will continue to receive the subsidy;
• Employees who terminate 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 for employees during unpaid leave to GEMS, provided that the employees 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 been increased from a maximum of R 1 850 to R 2 017 per month.
• Employees who retire whilst on the GEMS Sapphire option will continue to receive a 100% medical subsidy provided that the subsidy amount does not exceed R 2 017.
• Retired members are responsible for payment of full contributions for additional dependants if the contribution exceeds R 2 017.

The subsidy refunds were implemented during March 2016 and backdated to January 2016. National Treasury and your employer processed refunds along with your March salary via Persal, Salaries or Finance department. All queries regarding refunds for in service employees should therefore be directed to the relevant section in your department.

Should you require any additional information, please feel free to contact our dedicated call centre on 0860 00 4367 and select option 3 for contribution and debt management.