Germany Introduces Partial Sick Pay and Stricter Sick-Note Rules for 2.5 Million Public Sector Employees
Published on 07/12/2026 at 18:23 | Redaktion boerse-global.de
A sweeping reform package for Germany’s public sector will force millions of federal and municipal employees to produce a doctor’s note from the very first day they call in sick, while also offering a novel option: returning to work on a reduced medical certificate. The changes, approved by the Bundestag on 10 July 2026 as part of the GKV-Beitragssatzstabilisierungsgesetz, introduce a three-tier partial sick leave model from 1 January 2027. Workers covered by statutory health insurance may choose to work at 25, 50 or 75 percent of their usual hours – but only with the consent of both their physician and employer. The maximum daily sick pay in 2026 is currently set at €135.63 gross.
The same law phases out the telephone-based sick note that had become common during the pandemic. Starting next year, any absence due to illness must be certified in person by a doctor. The rules apply to all employees, though civil servants – Beamte – are temporarily exempt and only need a certificate if their superior demands one. Legal experts point out that existing employment contracts with more favourable sick-leave conditions may be protected under the principle of preferential treatment.
Alongside the health-related overhaul, Chancellor Merz used a government statement on 9 July 2026 to announce a broader administrative shake-up. His plan targets bureaucracy: the burden of proof in reporting obligations is to be reversed, and permits that are not processed within four months will be considered automatically granted – a so-called „Genehmigungsfiktion“. For staffing flexibility, the federal government intends to extend fixed-term contracts without a specific reason to up to 48 months, a temporary measure running until 2030. Municipalities are promised financial relief through higher federal compensation for costs arising from state benefit laws.
The salary increases that prompted the reforms were already inked. From 1 July 2026, the 2.5 million employees covered by the collective agreement for the public sector (TVöD) receive a 5.5 percent pay rise. Entry-level pay in pay group EG 3, step 1 now starts at €2,340 gross per month. Workers in EG 5 earn €2,750, those in EG 9a €3,540. Higher-grade employees in EG 13 take home around €5,010, while the top bracket EG 15 reaches up to €6,200. Additional benefits remain: a special annual payment worth 60 to 90 percent of September’s salary, 30 days of holiday per year (based on a five-day week), a vacation bonus of €255.65 paid in June, and a standard 39-hour work week for federal staff – most municipalities follow the same schedule.
Looking ahead, the next major TVöD bargaining round is expected in early 2027. In regional developments, the public transport sector in Lower Saxony has already agreed to reduce working hours to 38.5 per week from 2028, and to raise the holiday bonus to €600 as early as 2026. On the fiscal front, the government has signalled tax relief for lower and middle-income households: a family earning €60,000 per year could save roughly €600 annually from 2027. Offsetting that, prescription co-payments are set to rise to between €7.50 and €15, and fixed subsidies for dental prosthetics are expected to shrink.
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