Employers Seek to Limit Sick Pay - German Employers Demand Tougher Paid Sick Leave Rules Amid Soaring Costs
Employers in Germany are pushing for major changes to paid sick leave rules. Rainer Dulger, head of the Confederation of German Employers’ Associations (BDA), has warned that soaring absenteeism is costing businesses billions. His proposals include stricter controls and reduced benefits for workers on sick leave.
The call for reform follows a sharp rise in sickness-related absences since 2022. Last year alone, employers paid out around €82 billion in sick leave compensation. Lost production due to absenteeism reached €134 billion, with each employee taking an average of 20.8 sick days.
Dulger’s key suggestion is capping paid sick leave at six weeks per year. Currently, workers can receive multiple six-week paid periods within 12 months. He also wants to end phone sick notes, replacing them with video consultations. Additionally, he has proposed stricter checks by the Medical Service of the Health Insurance Funds to verify work incapacity claims more often and more quickly. Another demand is stopping premium payments for night, Sunday, and overtime work during sick leave. The BDA argues that these extra costs add unnecessary pressure on businesses already struggling with high absence rates. So far, the German government has not taken an official stance on the proposals. Discussions remain within employer groups, with no formal endorsement or rejection yet.
If implemented, the reforms would mark a significant shift in how sick leave is managed in Germany. Employers hope stricter rules will reduce costs and improve productivity. The government’s response—and whether the changes gain traction—will shape future workplace policies across the country.
