Germany Debates Sick Pay Cuts to Tackle Europe's Highest Sick Rates

Newsworm
Newsworm
with
AFP
April 13, 2026
Germany's coalition government is considering significant changes to sick leave policies, including reducing the six-week employer-paid sick leave period and limiting payments to once per year. The proposals also include reintroducing a waiting day before payments begin, aiming to address what officials describe as Europe's highest sick leave rates.
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Germany Debates Sick Pay Cuts to Tackle Europe's Highest Sick Rates
According to a media report, the leaders of the CDU/CSU and SPD are considering drastic measures to reduce the high rate of sick leave. Among other things, they are reportedly considering reducing sick pay. - AFP

Germany's coalition government is considering significant changes to sick leave policies, according to a media report. Leadership from the Union and SPD parties are evaluating drastic measures to address the country's high sick leave rates, sources from within the coalition told Bild newspaper's Monday edition.

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Proposed Changes to Employer Payment Period

The Union party has introduced proposals that would reduce the period during which employers must continue paying wages to sick employees. Currently, employers are required to maintain full salary payments for six weeks when an employee is unable to work due to illness. Under the proposed changes, this timeframe could be shortened.

Annual Limit on Employer-Paid Sick Leave

Another proposal under consideration would limit employers to providing paid sick leave only once per year, Bild reported. Under this system, once an employee has exhausted their maximum sick leave allocation, any subsequent illness would immediately trigger a transfer to health insurance providers, who pay a lower sickness benefit rather than full wages.

Reintroduction of Waiting Period

Coalition discussions have also raised the possibility of reintroducing a waiting day, known as a Karenztag, before sick pay begins. This measure would provide financial relief to businesses by delaying the start of compensation obligations.

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Government Acknowledges Record Sick Leave Rates

Government sources emphasized that no final decisions have been made, stating that "in the end, only what has been agreed upon collectively will apply." However, officials acknowledged that Germany currently has "the highest number of sick days in Europe." Both coalition partners have expressed their commitment to reducing this figure.

The coalition leadership's weekend negotiations on measures to ease citizens' energy cost burdens and pursue joint reform initiatives concluded without any publicly announced results. Chancellor Friedrich Merz (CDU), SPD co-chairs Lars Klingbeil and Bärbel Bas, CSU leader Markus Söder, and other participants conducted deliberations without issuing substantive statements.

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