Insurance costs rise for government workers
Health Insurance contributions for government workers have risen by $50 per month, and are set to rise by another $100 in the coming years.
The Government Employees (Health Insurance) (Rates) Amendment Order 2025 formally came into effect on August 29, increasing rates across the board with further increases scheduled for 2026 and 2027.
The rate increases were announced this year alongside pay rises for workers, set to take place over the same period.
Under the order, rates of contribution for adult government employees and retired government employees will rise from $402.51 per month, or $92.88 per week, to $452.51 per month or $104.42 per week.
Monthly rates for the categories will rise by a further $50 in both 2026 and 2027, while weekly rates will rise by $9.54 a year during the same period.
Contribution rates for non-employed spouses are set to rise from $603.77 per month, or $139.33, to $678.77 per month, or $156.64 per week.
The monthly rate will rise by $75 a year for the next two years, while the weekly rate will increase by about $17.30 per year.
Contribution rates for children will rise to $167.42 for a single child or $334.86 for two or more children per month, with further increases bringing the costs to $204.42 and $408.86 respectively by 2027-28.
The Government announced “marginal” increases to health insurance and pension fund contributions for government workers in March under an agreement which would result in 4.81 per cent pay increases, backdated to April 2024.
Under the deal, public sector workers will also be guaranteed inflation-linked pay increases — estimated to be about 2.5 per cent — for the next three years.
Diallo Rabain, the Minister of the Cabinet Office and Digital Innovation, said: “The uplifts to offset additional employee contributions to the Public Service Superannuation Fund and Government Employees Health Insurance are targeted to address funding shortfalls, aligning with actuarial recommendations, and will help to support the longer-term sustainability of our public pension funds.”