Germany to Slash Sick Pay in New Workforce Crackdown

German Chancellor Friedrich Merz is pursuing a series of measures to reduce sick leave and toughen the national workforce, including proposals that could see employees have their wages docked for taking sick days.

The crackdown follows data indicating that employees in Germany take an average of 14.8 sick days per year, one of the highest rates in Europe. Chancellor Merz has characterized the current state of the nation’s work ethic as a drag on the economy, which has seen growth largely stall since 2022.

Restrictions on Telephone Sick Notes

A central component of the government’s strategy involves ending the practice of obtaining short-term sick leave certificates via telephone. This option was originally introduced during the Covid-19 pandemic to limit physical contact at clinics.

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Chancellor Merz has specifically criticized the phone-in option, asserting that it makes it far too easy to bunk off work. He argued that the current average of nearly three weeks of illness-related absence per year is too high and questioned whether such a level of absence is truly necessary.

The proposal to remove telephone sick notes has received support from the National Association of Statutory Health Insurance Physicians (KBV). Andreas Gassen, the chair of the KBV, stated that it is not possible to reliably assess whether someone is truly unfit for work over the phone.

Opposition from Unions and Medical Professionals

The proposed changes have met with significant opposition from labor groups and members of the medical profession. German unions have criticized the measures, suggesting that workers are being treated like shirkers.

Opponents of the plan argue that forcing every employee to visit a doctor in person for short-term illness will lead to unnecessary congestion in medical waiting rooms. Some critics have described the government’s crackdown as a fairy tale.

Economic Context and Implementation

The drive to increase workforce productivity is tied to the broader economic struggles of the European Union’s largest economy. Merz, who spent two decades in the private sector before taking office in 2025, believes that Germany’s generous illness policies are undermining efforts to kickstart economic growth.

The Chancellor noted that the 14.5 to 14.8 average sick days per year does not even account for the one or two days of recovery time that typically do not require a formal doctor’s note, meaning the actual amount of time workers are absent is even higher.

Reports indicate that Germany introduced a new law specifically targeting these issues on March 26, 2026, as part of the effort to curb what the administration views as excessive absenteeism.