Controversy about Wages: Potential Elimination of Salary for Sick Leave?

In a move that has sparked heated discussions, the Institut der deutschen Wirtschaft (IW) Cologne has proposed the introduction of waiting days for illness, similar to some other countries. This idea, aimed at reducing excessive absenteeism and the resulting increase in social insurance contributions, has been met with criticism from various quarters.

The IW Cologne's proposal is based on economic analyses and projections of rising social contributions linked to high sickness absence rates. Under the proposed idea, employers would only have to pay for wage continuation voluntarily in the first days of an illness. For changing illnesses, the total duration of wage continuation would be limited to six weeks per year, regardless of the diagnosis.

However, the Hans Böckler Foundation, a prominent German foundation, rejects this concept. They view wage continuation as an important social protective mechanism, especially in addressing the high illness numbers. Instead, they suggest addressing the issue through better working conditions and preventive health promotion.

The Association of Bavarian Business (vbw) is open to discussion about reforms but warns against hasty actions. The main business leader of the vbw, Bertram Brossardt, emphasizes that the waiting day in Germany was abolished for a reason in 1970. The vbw suggests that solutions should be found in dialogue with social partners, not at the expense of employees.

Trade unions have also criticised the proposal heavily. The DGB Bavaria argues that ill employees should not face financial penalties, viewing the IW Cologne's proposal as an "attack on the health of employees." The DGB Bavaria strongly opposes the idea, citing concerns about employee well-being.

Employees in Germany, on average, are older and more prone to illness and longer periods of sickness. Since 2010, illness costs for employers in Germany have more than doubled. In 2024, employers paid out approximately 82 billion euros for wage continuation, a 10 billion euro increase from three years prior.

Higher wages in Germany make the six-week wage continuation in case of illness more expensive for employers. The Association of Bavarian Business (vbw) emphasises that any reforms should take this into account.

Whether a reform will actually occur is currently uncertain. The debate continues, with both sides presenting compelling arguments. The key will be finding a solution that balances the need for a sustainable health system with the protection of employees' well-being.