Govt to cover 100% for medical aid

The government will now pay 100% of medical aid for civil servants, following the removal of the 5% levy previously paid to service providers, effective 1 April, while a 5% levy on self-medication will remain applicable.

This was announced yesterday by Namibia Public Workers Union general secretary Petrus Nevonga at the signing of the negotiation agreements, alongside Namibia Teachers Union secretary general Loide Shaanika and Cabinet secretary Emilia Mkusa.

The salary increment will be implemented over two financial years: 2026/2027 and 2027/2028.

The change to the Public Service Employee Medical Aid Scheme (Psemas) follows the directive by president Netumbo Nandi-Ndaitwah that all civil servants, including senior officials and herself, must use public hospitals from 1 April.

In 2024, the government’s wage bill stood at N$35.4 billion for the new financial year, including benefits and a 5% increase for civil servants.

This was revealed in the 2024/25 budget. The current number of civil servants stands at 119 000.

“Some used to pay their service providers for their medical aid, which used to be about N$700, but there is no longer a need for that because this has been addressed in the agreement, and they will now be making use of the state,” Nevonga said.

Part of the agreement states that the removal of the 5% levy on Psemas has necessitated a review and adjustment of the current monthly membership contribution from N$240 to N$500, while for dependents it has been adjusted from N$120 to N$240 for higher options.

For standard options, main membership rates have been adjusted from N$120 to N$240 per month, and rates for dependents from N$60 to N$120 per month.

According to the agreement, civil servants for grades 14 and 15 will receive an N$700 monthly salary, and a 5% basic salary increment for grades 13 to one, effective 1 April.

A 5% salary increment was also agreed across the board (grades 15 to 1), effective 1 April 2027, and a 7% increase for transportation of civil servants below management.

Nevonga said the long-awaited review of job evaluations and gradings will now commence following the conclusion of the agreements between the parties.

Teachers Union of Namibia secretary general Mahongora Kavihuha yesterday expressed disappointment, saying what is happening is wrong and that he would issue a statement today to express their dismay.

Mkusa acknowledged the economic issues but commended the parties for reaching an agreement in the best interests of all public servants.

She said the government remains committed to safeguarding the lives of those at the forefront of government service delivery to the masses.

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