Civil servants to feel Psemas pinch

Reforms to the Public Service Employees Medical Aid Scheme are requiring civil servants to reapply for benefits amid union warnings that increased contributions would severely impact their finances.

The Ministry of Justice and Labour Relations has given civil servants until August to do so.

Its directive cautions that the failure to reapply could lead to disruptions in accessing medical aid benefits while records are being updated.

Trade unions, however, fear that these changes could further disadvantage civil servants, and that no proper consultations on the changes were made.

Prime minister Elijah Ngurare yesterday said the government is reviewing the scheme’s operations, which cost over N$4 billion annually.

“As you are aware, Psemas is annually allocated over N$4 billion.

We’ve decided to review its operations based on stakeholder recommendations by introducing equity through ensuring co-payments are removed for all Psemas members,” he said.

He said a new governance structure has been introduced to strengthen accountability and efficiency, with the goal of improving public healthcare facilities in line with National Development Plan 6.

Executive director of justice and labour relations Audrin Mathe has instructed all staff members to submit new medical aid applications by the end of August, following amendments to the Public Service Staff Rule (PSSR) and a revised Psemas benefit structure.

In an internal circular dated 1 April, the ministry said the move is necessary to process and update civil servants’ medical aid records in line with the revised Psemas benefit structure.

“All staff members are hereby informed to complete and submit the new medical aid application forms on or before 31 August 2026,” the letter reads.

The circular further attached the amendments and details of the revised structure.

Mathe yesterday said: “Please direct this to the Office of the Prime Minister (OPM) . . . We just distributed that to staff members under the cover of the letter.”

OPM spokesperson Rhingo Mutambo said: “This is a query for the line ministry that issued the communication. I advise as such. But I will consult here too. If I get anything I will let you know.”

‘NO CONSULATIONS’

Labour representatives have raised concerns about the process followed in implementing these changes.

Public Service Union of Namibia (PSUN) secretary general Matheus Haakuria yesterday said Psemas membership is a condition of employment regulated by the PSSR, and changes should be negotiated.

“Therefore, changes to Psemas are a subject of negotiations between the government, represented by OPM, and the bargaining unions namely the Namibia Public Workers Union (Napwu) and the Namibia National Teachers Union (Nantu),” he said.

Haakuria criticised the lack of consultation with civil servants.

“The government has not followed this route, nor did Napwu or Nantu consult civil servants. This is a top-down approach by the government, which is highly irregular,” he said.

“The PSUN is not aware of any process to this effect that occurred,” he said, adding that unless the government proves compliance with collective bargaining requirements, “the communication remains a mechanism of self-help by the employer”.

Haakuria also warned that the move undermines labour relations frameworks.

“It is unfortunate that the ministry that is supposed to ensure that the government as an employer respects International Labour Organisation Convention 98 is leading the charge on the destruction of social dialogue in the republic,” he said.

Meanwhile, Trade Union Congress of Namibia secretary general Mahongora Kavihuha said the reported increases in medical aid contributions could worsen public servants’ financial troubles.

“With regard to the increase of public servants’ medical aid with 100% plus, it’s an unfortunate situation which is going to push them more to starvation and is going to contribute negatively,” he said.

Kavihuha said while labour structures have raised concerns, public servants themselves have not provided a strong mandate to oppose the changes.

“If they were reluctant to confront this unfortunate situation, it means our hands are tied,” he said.

Kavihua added that the implementation of the reform appears to be proceeding across ministries.

“We’ve seen various notices about implementation across various ministries. The government is going ahead with the increases,” he said.

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