064 533 3670 info@clarity.africa

Medical Aid Policy for Employees

What is Medical Aid?

Medical aid is a way for your employees to pay for medical care. A monthly premium is paid  to a health insurance company, and they will pay for:

  •  Doctor visits.
  • Hospital stays.
  • prescription drugs.
  • Other medical expenses.

The amount of coverage you get will depend on the plan you choose.

Medical aid is important because it can help your employees afford the cost of medical care. Without medical aid, your employees could be faced with a large bill if they get sick or injured, which may impact the productivity of your business. 


A docotor giving tablets and discussing the benefits of medical aid as an employee benefit.
A doctor explaining why medical aid is important for employees
A group of employees sitting outside smiling and discussing the importance of medical aid.

Why is Medical Aid Important for Employees?

Healthcare Access

Medical aid ensures that employees have access to necessary healthcare services when they need them. It covers a wide range of medical expenses, including doctor visits, hospital stays, surgeries, and prescription medications.

Financial Protection

Medical treatments can be expensive, and without medical aid, employees may face significant financial burdens when seeking healthcare. Medical aid acts as a financial safety net, helping employees manage and reduce the out-of-pocket costs associated with medical care. 

Wellness and Preventive Care

Many medical aid plans include coverage for preventive services such as:

  • vaccinations.
  • screenings.
  • wellness programs.

This encourages employees to prioritize their health through regular check-ups and preventive measures, leading to early detection and intervention for health issues. Healthy employees are more productive and take fewer sick days. 

Emotional Well-being

Knowing that they have medical aid can alleviate stress and anxiety for employees and their families. The peace of mind that comes with healthcare coverage can positively impact an employee’s overall emotional well-being, allowing them to focus more effectively on their job responsibilities. 


The benefits of having a medical aid policy as an employee benefits

Attract and retain top talent

Medical aid can help attract and retain top talent in a competitive job market. Employees are more likely to stay with a company that offers health insurance.

Improve employee morale and productivity

Employees who feel valued and supported by their employer are more likely to be happy and productive at work. Medical aid can help improve employee morale and productivity by giving employees peace of mind and a sense of security. 


Comply with legal requirements

Some employee benefits are required by law. For example, employers in South Africa are required to provide medical aid to their employees.

Improve the company’s image

A company that offers good benefits is seen as being a good employer. This can attract new customers and partners, and it can also make the company more attractive to potential investors. 

A doctor on the phone explaining the benefits of having medical aid as an employee benefit
 group of employees looking at a laptop screen and discussing the benefits of medical aid as an employee benefit

Who is eligible for the medical aid policy? 

Eligibility for a medical aid policy can vary depending on the specific policy and the employer’s terms. The following individuals are typically eligible.


Full-time employees are eligible for a medical aid policy offered by their employer. This includes individuals who work a specified number of hours per week or month and are on the company’s payroll. 

Dependent Family Members

In many cases, the eligibility extends to an employee’s immediate family members, including spouses and children.

Part-Time Employees

Depending on the policy and the employer’s discretion, part-time employees may also be eligible, although their coverage might differ from that of full-time employees.

Contract Workers

Contract or temporary workers may or may not be eligible for medical aid, depending on the terms of their employment and whether the employer extends benefits to this category of employees.

A doctor and patient sitting down discussing medical aid
A hand holding a family that is covered by medical aid


How much do employees and employers contribute to the medical aid policy? 

The amount that employees contribute to the medical aid policy varies from employer to employer. There is no fixed rate at which a company must subsidize its employees for medical aid cover.

Contributions typically range from 30 to 50% of employees’ monthly premiums. Employees are liable for the shortfall.

For Example

Ann employee with a monthly medical aid premium of R2,000 may have their employer contribute 50%, meaning they would pay R1,000 per month and the employer would pay the remaining R1,000.

However, another employee with the same monthly premium may have their employer contribute only 30%, meaning they would pay R1,400 per month and the employer would pay R600.

The exact amount of the contribution will depend on a number of factors, including the company’s policy, the employee’s salary, and the type of medical aid plan they choose.


The factors that can affect the amount of the employee contribution:

The company’s policy: Some companies have a set policy on how much they will contribute to their employees’ medical aid premiums. Others may be more flexible and allow employees to choose the level of contribution that they want.

The employee’s salary: Generally, employees with higher salaries tend to have higher medical aid premiums. This is because the premiums are based on the employee’s income.

The type of medical aid plan: The type of medical aid plan that the employee chooses will also affect the premium. More comprehensive plans tend to have higher premiums.

A man sitting down and working out each employees medical aid contributions
A jar filled coins that will contribute towards a medical aid

Secure Your Company’s Medical Aid Policy Today!

Simply complete the form below and click ‘submit’ to submit a medical aid policy inquiry. Our customer service team will get in touch with you within 2 business days.