The Department of Public Service and Administration has announced an increase on government’s medical assistance to all employees on the Government Employees Medical Scheme (GEMS), with effect from 1 January 2021.
In a statement on Thursday, Department of Public Service and Administration (DPSA) Director-General, Yoliswa Makhasi, said the increase — which also applies to all former employees belonging to a registered medical scheme — is by Medical Price Index (MPI) of 8.51%.
“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,” Makhasi said.
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 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.
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% of his or her total monthly medical contribution up to the maximum employer subsidy, based on the number of dependents registered.
According to the DPSA, a former employee belonging to a registered medical scheme shall be eligible for 75% 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% of 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 department said.
The maximum cap of the employee’s tax allowance, comprising of the monthly cap of R1 526.00 for principal member, R1 526.00 for the first dependant and R933.00 for each additional three dependants will be R5 851 00.
The increase is as follows:
Single Principal Member R1 406.00 R1 526.00
Principal Member with one dependent R2 812.00 R3 052.00
Principal Member with two dependents R3 671.00 R3 985.00
Principal Member with three dependents R4 530.00 R4 918.00
Principal Member with four dependents R5 389.00 R5 851.00