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 R2024.00 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 R2024.00
- Retired members are responsible for full contributions of additional dependants if the contribution exceeds R2024.00.
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.