German firms paid a record €85 billion in wage continuation for sick employees in 2026
Executive summary: German companies paid over 85 billion euros in wage continuation for sick employees in 2026, a record high. The surge reflects rising labor costs that could squeeze profit margins, influence wage negotiations, and prompt firms to reconsider sick‑leave policies or hiring plans.
Who is involved: German employers across industries, employees receiving sick‑pay benefits, and statistical agencies tracking the data.
Likely next: Firms may review sick‑leave arrangements and seek cost‑saving measures; policymakers could evaluate the wage‑continuation framework; upcoming quarterly labor‑cost reports will provide further insight.
The €85 billion that German firms paid in 2026 for continued wages during employee illness represents the highest level ever recorded, according to Der Spiegel. This figure reflects the total cost of wage continuation schemes, which are triggered when employees are unable to work due to health reasons and receive a portion of their salary from their employer. While the rise does not automatically indicate a higher incidence of sickness, it does point to an increase in the financial burden associated with employee health-related absences. For businesses, the growing expense can affect profitability and may influence decisions about hiring, workforce planning, and investment in employee health programs. Companies might respond by examining the underlying drivers—such as changes in labor regulations, wage growth, or demographic shifts—to assess whether the trend is likely to persist. In the near term, the data could prompt more detailed analysis of sick‑leave patterns and encourage dialogue between employers, policymakers, and health providers on how to manage labor costs while maintaining workforce wellbeing.
Timeline
- — Unternehmen in Deutschland zahlen Rekordsumme für kranke Beschäftigte (Der Spiegel — Wirtschaft)
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Sources
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