Government Considers Cutting Sick Pay Policies

Government Considers Cutting Sick Pay Policies

Leading figures from the CDU/CSU Union and the SPD are reportedly considering significant measures regarding wage payments for sick employees. According to reports from “Bild” citing sources within the coalition, the Union side has introduced the idea of reducing the duration of wage payments during sickness. This could potentially shorten the current six-week period during which the employer must continue paying the sick employee’s salary. Additionally, there is discussion about limiting employer wage continuation payments to no more than once a year. This would mean that if the maximum period is reached, the statutory sickness fund would immediately cover subsequent instances of illness with a lower sickness benefit rate. Furthermore, the reintroduction of a so-called “quarantine day” is being discussed. Under this proposal, wage continuation would no longer begin on the first day of illness, but rather starting from the second. This change would provide financial relief to businesses, but at the expense of employees. Sources noted that within government circles, the understanding is that “only what is ultimately agreed upon counts” and both coalition parties are keen to reduce the coverage provided for sick days.