The Public Servants Association (PSA) wants government to explore alternative solutions to fund the National Health Insurance (NHI) scheme, without placing the burden on struggling employees following reports that employees would face an additional R37 000 tax burden to fund the scheme.

“The move will place undue financial burden on employees, many of whom are already struggling with the rising cost of living. It must be said that additional tax will be a slap on the face of South African workers who are already facing economic hardships,” the organisation said.

The PSA is adamant that “universal, affordable and quality” health care is essential for all citizens of the country, however this must not place an additional financial burden on taxpayers, it stressed.

The PSA pointed out that it has on several occasions warned government to delay the implementation of the NHI Act until critical issues such as funding, staffing and infrastructure are addressed.

The organisation said government needs to find a balanced approach that ensures the sustainability of the NHI while protecting the financial well-being of South African employees. 

“The PSA as a progressive union fully supports universal access to healthcare to address the inequality of the healthcare system to cover the vulnerable, however ignoring the magnanimous challenges will not result in the successful implementation of the NHI,” it said.

The organisation highlighted that the proposed funding is not only inadequate for the successful implementation of universal healthcare access but is not sustainable.

It noted that South Africa is not ready to implement the NHI, especially in its current form, pointing to the recent inspection at health institutions, which revealed that more than half of the institutions do not meet the NHI-required standards.

“The chronic staff shortage is another problem that the government is dismally failing to address,” it added.

The PSA called on all stakeholders to engage in meaningful dialogue to find a “sustainable and fair” solution for funding the NHI.