The total wages paid by German companies for sick and maternity leave have more than doubled over the past 15 years, reaching a record €85.6 billion last year, a study by the Cologne-based German Economic Institute (IW) revealed. This significant increase reflects evolving labor costs and workforce growth in the country.
The IW analysis estimates that in 2010, these costs amounted to €36.9 billion. In 2023, of the €85.6 billion total, about €72.5 billion represented gross wages, while the remaining €13.1 billion covered social security contributions tied to those absences.
Several factors contributed to this surge, including wage increases, inflation affecting other employee-related expenses, and an overall expansion in the number of employed individuals eligible for sick leave. Additionally, a notable rise in recorded sick leave coincided with the introduction of electronic medical certificates in 2022, which may have improved reporting accuracy.
Increase in Sick Leave Duration
Research from the Berlin-based IGES Institute highlights a growing trend in sick leave duration. German workers now average 19.5 days of sick leave annually, compared to approximately 13 days in 2018. This jump emphasizes the increasing burden on employers and the social security system.
Government Measures to Control Sick Leave Usage
In response to the rising costs and duration of sick leave, Chancellor Friedrich Merz’s government plans to ban the issuance of sick notes over the phone starting in January. This policy aims to curb the increasing number of sick leave cases that may be facilitated through easier certification methods introduced recently.
Sick Leave Payment System in Germany
Under German law, employers are responsible for paying the full salary of employees who are absent due to sickness for up to six weeks. Beyond this period, statutory health insurance funds take over by providing sickness benefits. This arrangement places significant financial responsibility on companies, especially with the growing number of prolonged absences.
