In Berlin’s political corridors, a controversial relic of the 1990s is making a comeback. The CDU/CSU coalition, led by Chancellor Friedrich Merz, is floating a proposal to reinstate the “Karenztag”—effectively making the first day of sick leave unpaid for employees.
While proponents argue this is a necessary “economic awakening” for a nation struggling with stagnation, labor advocates are calling it an “indecent” attack on workers. If you work in Germany, here is a deep dive into the data, the laws, and what this means for your next Monday morning call-in.
The Economic “Why”: €82 Billion at Stake
Germany is currently facing record-high absenteeism. In 2024 and 2025, German employees took an average of 14.8 sick days per year—nearly three full work weeks. According to the German Economic Institute (IW), this absenteeism costs the economy approximately €82 billion annually in lost productivity.
Chancellor Merz has frequently compared Germany to the UK, where workers take just 4.4 days annually. In a recent speech, Merz stated, “Work-life balance and a four-day week will not be enough to maintain our country’s current level of prosperity. We need to work harder.” To combat this, the CDU/CSU is floating a plan that includes:
- The Unpaid First Day: Shifting the financial burden of the first day of illness from the employer to the employee.
- The Health Bonus: Offering an extra day of paid holiday for employees who take five or fewer sick days in a year.
- Cracking Down on Phone Notes: Health Minister Nina Warken (CDU) is reviewing pandemic-era rules that allow doctors to issue sick notes via phone, suggesting they may encourage misuse.
The Human Perspective: A Tale of Two Workers
To understand the impact, let’s look at how this change would affect real individuals:
- The “Monday Morning” Cold: Under the new plan, if Sarah wakes up with a heavy cold on Monday and calls in sick, she would lose 100% of her pay for that day. For a middle-income worker, this could mean losing over €150 from their monthly take-home pay for a single bout of the flu.
- The Presenteeism Risk: Critics argue this forces workers into a dangerous choice. Sarah might go to work while contagious to avoid the financial penalty. This is known as Presenteeism. Labor Minister Bärbel Bas (SPD) warns that this leads to Sarah infecting her entire department, ultimately causing a larger economic loss through a workplace outbreak.
Understanding the Law: Entgeltfortzahlungsgesetz
The current safety net is governed by the Entgeltfortzahlungsgesetz (EFZG), or the Continued Remuneration Act.
- What it does: By law, your employer must pay you 100% of your salary from the first hour of sickness for up to six weeks.
- The Current Protection: This act ensures that illness does not lead to immediate financial hardship. Currently, the SPD is blocking any changes to this law, with Minister Bas arguing that the conservative proposal is “unsuitable” for the current economic climate.
The Opposition: “Treated Like Shirkers”
Labor unions are responding with fierce resistance. Yasmin Fahimi, chair of the German Trade Union Confederation (DGB), has labeled the proposal “indecent,” stating it places the entire workforce under general suspicion.
“People don’t get sick because they want a day off; they get sick because they are human. Treating workers like shirkers is a slap in the face to those keeping the economy running.” — Yasmin Fahimi, DGB.
Historical Warning: The 1996 Reversal
This isn’t Germany’s first attempt to cut sick pay. In 1996, the government successfully passed a law reducing statutory sick pay to 80%. The result?
- Mass Protests: Thousands of workers took to the streets across major cities like Hamburg and Berlin.
- Collective Bargaining: Powerful unions simply negotiated the 100% pay back into their Tarifverträge (collective agreements), effectively bypassing the law for millions of workers.
- Reversal: The law was widely considered a failure and was officially withdrawn in 1999.
Better Alternatives: Expert Recommendations
Research from the ZEW (Leibniz Centre for European Economic Research) suggests that financial penalties aren’t the best “upgrade.” They recommend:
- Part-Time Sick Leave: Allowing employees to work 50% from home while recovering to maintain some productivity without spreading germs.
- Physical Checks: Moving away from “low-barrier” phone-in sick notes to ensure medical necessity without docking pay.
Call to Action: Your Voice Matters
As of April 2026, no changes have been passed into law. Your rights to 100% pay from day one remain legally protected by the Entgeltfortzahlungsgesetz. However, with business associations issuing joint warnings to the Merz cabinet about Germany’s competitiveness, this pressure will not disappear.
What can you do?
- Stay Informed: Share this post with a coworker. Awareness is the first line of defense for labor rights.
- Contact Your Representative: If you feel strongly about the “Karenztag,” write to your local member of the Bundestag. You can find your representative via the Bundestag website.
- Check Your Agreement: Review your employment contract or collective agreement (Tarifvertrag) to see if your sick pay is protected independently of statutory law.
Germany eyes tough sick leave rules
This report details Chancellor Merz’s recent push to reduce absenteeism and his explicit warnings that Germany must “work harder” to maintain prosperity.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult with a legal professional or union representative regarding your specific situation.
