Germany has been declared the 'world champions of sick leave' as workers in the country are taking an average of 20 sick days per year. This is higher than the EU (European Union) average of eight days, affecting Germany’s work ethic and economy. 

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Rising trend of sick leaves: Economic constraints in Germany 

The soaring number of sick leaves has been linked to cases of cold and COVID, according to health insurance DAK. The sheer volume of sick days is putting a huge toll on the economy of the country and affecting businesses paying the price of the employee’s absence. 

According to a report, the total cost of illness leaves reached €77 billion in wages. When adding €19 billion spent by health insurers, this totals 6% of Germany's national social spending.

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The ongoing issue with such leave is one sign of Germany’s larger economic struggles. The country’s once-thriving economy has shrunk in recent months, with major companies such as Volkswagen announcing job cuts for the first time in history. 
In December, the company announced the elimination plans of the workforce due to economic strain. 

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A call for reform

The CEO of Allianz SE, Oliver Bäte, shared his thoughts raising concern about the financial impact of this uncanny trend and offered a solution. He proposed the idea of bringing back a policy that had been eliminated in 1970 where workers would lose pay on the first day of sickness unless they provided a doctor’s note.

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In a statement to German media, he said that countries like Switzerland and Denmark have managed to keep their economies strong by working longer hours. Bäte’s proposal has been met with support from some business leaders, who see it as a necessary step to curb the rising costs associated with sick leave.

This ‘waiting day’ system is still used in countries like Spain and Greece. Bäte believes this change could save Germany up to €40 billion each year.

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Ideas to reform opposed

The idea has triggered an outrage among trade unions and some political parties. Hans-Jürgen Urban, a board member of the engineering union IG Metall, countered Bäte's suggestion by saying, "The German economy won’t recover with sick employees, but on the contrary, with better working conditions." Urban called the reintroduction of the ‘waiting day’ an “assault on the welfare state.”

Dennis Radtke, a member of the European Parliament for the center-right, opposed the idea of it being a "class war from above." 

Amid the country's economic challenges, it is interesting to see that only the economy of Germany shrank in the year 2023 out of the G7 economies, and even the IMF stated that it would be the worst economy among all G7 economies in 2024 as it was expected to grow by zero per cent.

(With inputs from agencies)