Germany’s leading employers’ association, the Confederation of German Employers’ Associations (BDA), is pushing for a sweeping overhaul of the nation’s sickness benefit system, sparking a heated debate about worker protections and economic productivity. Rainer Dulger, President of the BDA, argues that the current system, characterized by generous wage replacement and easily accessible sick notes, is contributing to a sharp rise in absenteeism and costing the German economy billions.
The core of Dulger’s proposal centers on a fundamental reform of the six-week wage continuation policy per illness. He asserts that international comparisons consistently demonstrate a correlation between high wage replacement rates and increased sick leave, particularly for minor ailments. The BDA wants to cap wage continuation at a maximum of six weeks “per year”, regardless of the number of individual illnesses, a significant shift from the current system which allows for potentially multiple six-week periods within a single year.
A key element of the proposed changes is the complete abolishment of telephone sick notes. Introduced as a temporary measure during the pandemic, the BDA now condemns them as a conduit for abuse. Dulger advocates for video consultations as a more modern and reliable alternative. This move has drawn criticism from labor advocates who fear it will further erode patient access to healthcare and potentially pressure individuals to return to work prematurely.
Beyond limiting wage continuation, the BDA is also proposing the cessation of overtime and shift premium payments for employees on sick leave, reasoning that those not working should not be entitled to additional compensation. The association further calls for increased and faster scrutiny of sick leave by the Medical Services of Health Insurance Funds, currently a rarely utilized practice.
The call for reform comes amid a marked increase in absenteeism since 2022. Calculations from the pro-employer Institute of German Economics (IW) estimate that German businesses will spend approximately €82 billion on sickness benefits in 2024. Coupled with lost productivity and foregone economic output, the cumulative cost to businesses and the German economy is estimated to reach hundreds of billions. Data from the Federal Institute for Occupational Safety and Health indicates a staggering €134 billion in production losses attributable to sick days in 2024, with an average of 20.8 sick days per employee.
The BDA’s proposals are likely to face significant resistance from labor unions and worker representatives, who argue that reforms risk undermining employee well-being and creating a climate of mistrust. Critics contend that focusing solely on reducing absenteeism ignores underlying issues such as workplace stress and potential deficiencies in the healthcare system. The debate highlights a growing tension between the desire to boost economic performance and the imperative to safeguard the rights and health of German workers.