Germany Debates Proposal to End Sick Pay on First Day of Illness

Politicians, unions, and experts criticize Allianz CEO's suggestion as harmful to workers and ineffective for addressing high absenteeism.

Allianz CEO Oliver Bäte's proposal to eliminate sick pay for the first day of illness has reignited discussions about Germany's high rates of absenteeism compared to other EU nations.
Critics, including SPD ministers Hubertus Heil and Karl Lauterbach, argue that the measure would disproportionately harm low-income workers, particularly women, and increase workplace health risks.
Supporters of the proposal claim it could reduce costs for employers and discourage unwarranted sick leave, but evidence for such outcomes remains contested.
Unions and health experts emphasize that rising absenteeism is largely due to better reporting systems and an increase in long-term illnesses, such as mental health conditions, rather than misuse of sick leave policies.
Alternative suggestions, such as employer bonuses for consistent attendance or improved workplace health initiatives, have been proposed as more constructive solutions.