German employers shouldered approximately 82 billion euros in costs related to employee sick leave in 2024, a figure that represents four times the amount paid in statutory sick pay and exceeds a quarter of total expenditures by Germany’s statutory health insurance system, according to a study published Thursday by the Institute of the German Economy (IW).
The substantial sum isn’t solely attributable to increased sick leave. The study points to a robust labor market as a contributing factor; with a record number of employed individuals in 2024, aggregate payrolls and subsequently payments during illness, naturally increased. General wage growth also played a significant role, as sick pay is often calculated based on regular earnings.
“Companies generally already provide good health-related working conditions” stated study author and economist Jochen Pimpertz. “If policymakers aim to alleviate the burden on businesses, they need to address non-wage labor costs. This would support the government’s growth initiatives, instead of hindering them”.