Germany eyes tough sick leave rules, warns four-day week threatens economy

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Germany is weighing sweeping changes to its sick leave policy, including docking workers’ wages from the first day they call in sick, as the government looks to tackle one of the highest absenteeism rates in Europe.

Chancellor Friedrich Merz is considering proposals that would allow employers to cut pay for employees who take sick leave, while rewarding those who take fewer days off. The plan, first reported by Bild, is part of a broader effort to boost productivity in Europe’s largest economy.

High absenteeism driving policy rethink

German workers take an average of 14.8 sick days per year—significantly higher 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 annually, according to the German Institute for the Economy.

Officials say the high number of sick days is unsustainable, particularly as Germany faces economic pressures and slowing growth.

Proposed changes to sick leave rules

Under the proposed reforms, workers could see their pay reduced from the very first day they report sick. At the same time, employees who take five or fewer sick days per year may be rewarded with incentives such as bonus leave.

The aim is to discourage workers from taking time off for minor illnesses like colds and instead encourage them to remain active in the workplace.

Merz, leader of the Christian Democratic Union, has repeatedly warned that Germany must increase its work output to maintain economic stability.

“To put it bluntly: work-life balance and a four-day week will not be enough to maintain our country’s current level of prosperity,” he said in a recent speech. “We need to work harder.”

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