Government Weighs Deep Cuts to Sick Pay and Disability Benefits
Mixed

Government Weighs Deep Cuts to Sick Pay and Disability Benefits

Sources report that leading figures from the Christian Union and the SPD are examining significant measures concerning sick employees. According to those reporting on coalition discussions, the Union side has introduced ideas such as reducing the duration of wage payment during illness. For example, the current six-week period during which the employer continues to pay the salary for a sick employee could potentially be shortened.

Furthermore, there is consideration being given to requiring employers to provide wage continuation only once per year. This would mean that once the maximum paid period is reached, health insurance would immediately have to cover costs with the lower sickness benefit rate in case of a subsequent illness.

Additionally, the reintroduction of what is called a “quarantine day” is being discussed. Wage continuation would no longer start on the first day of illness but only from the second. This measure would ease the financial burden on companies, although it would affect employees.

Sources within the government say that ultimately, only what is agreed upon in total will count. It was reported that both coalition partners are keen to reduce the number of paid sick days.