Germany is considering sweeping changes to its sick leave policy, including docking workers’ wages from the first day they call in sick, as the government tries to tackle some of the highest absenteeism in Europe.
Chancellor Friedrich Merz is considering proposals that would allow employers to cut wages for employees who take sick leave while rewarding those who take fewer days off. The plan, first reported by Bild, is part of a wider effort to increase productivity in Europe’s largest economy.
Rethink high absenteeism management policy
German workers take an average of 14.8 sick days a year, significantly more than many European counterparts and more than three times the UK average of 4.4 days. The trend has raised concerns among policymakers and businesses, with absenteeism costing companies an estimated €82 billion a year, according to the German Institute for Economics.
Officials say the high number of sick days is unsustainable, especially as Germany faces economic pressures and slowing growth.
Proposes changes to sick leave rules
Under the proposed reforms, employees could have their pay cut from the first day they call in sick. At the same time, employees who take five or fewer sick days per year can be rewarded with incentives such as bonus vacation.
The idea is to discourage workers from taking time off for minor illnesses, such as colds, and instead encourage them to stay active in the workplace.
Merz, the leader of the Christian Democratic Union, has repeatedly warned that Germany must increase its work output to maintain economic stability.
“Bottom line: work-life balance and the four-day week will not be enough to sustain our country’s current level of prosperity,” he said in a recent speech. “We have to work harder.”
