DPSA Medical Aid Subsidy

DPSA Medical Aid Subsidy

DPSA Medical Aid Subsidy; During February , 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 .
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 R2022.00 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 R2022.00
  • Retired members are responsible for full contributions of additional dependants if the contribution exceeds R2022.00.

The subsidy refunds will be implemented during March and backdated to January . 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.