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Germany's IW Calls for Karenztage as Employer Sick-Pay Bill Reaches €82 Billion

Critics call the nominal surge misleading, leaving the six‑week pay rule and Krankengeld system unchanged.

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Overview

  • New IW figures put employers’ 2024 outlays for sick staff at about €82 billion, up €10 billion in three years and roughly 2.2 times the 2010 level.
  • IW expert Jochen Pimpertz proposes unpaid or reduced‑pay Karenztage at the start of illness episodes or a hard cap of six weeks’ employer pay per year across changing diagnoses.
  • The IMK counters that focusing on nominal totals distorts the picture, noting sick‑pay costs rose only from 3.4% to 4.2% of total wages since 2010 and have barely moved since 2013.
  • Current law remains in force: employers pay wages for up to six weeks per illness, then statutory insurers pay Krankengeld at generally 70% of gross (capped) for up to roughly 72 weeks.
  • Guidance pieces reiterate that a continuous medical certificate is essential, applications are typically initiated by the insurer, and disputed work ability can be reviewed by the MDK with appeal rights.