Germany Announces Stricter Sick Leave Rules as Part of Economic Reform Package

Germany has a comprehensive economic reform plan to improve productivity and reduce absenteeism. The reforms were announced on July 3, 2026 and come with new labor laws and tax and pension cuts, a sign of government intent to modernize Europe’s largest economy.

But the biggest change is that sick leave rules will be more strict. Now workers will have to present a doctor’s medical certificate as soon as they have sick leave. That is in contrast to the old system, where certificates were required if the employee was sick for three days. And phone‑based sick leave certificates will be discontinued in the future, which officials claim has led to an increase in absenteeism.

Along with labor reforms, the package introduces income tax cuts for low‑ and middle‑income families. That will increase disposable income, stimulate consumption and relieve families of inflationary pressure. Millions of German workers will see it in their jobs and they will benefit from this because the government is going to work toward social equity and economic growth.

The reforms do also respond to the aging population in Germany by changing pensions to match population growth in life expectancy. And the government is working to protect the pension system by gradually adding longer working years.

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Another key pillar of the package is to reduce bureaucracy and improve efficiency. Simplified administrative processes, digitalization of government services and simplified compliance rules are expected to cut red tape for businesses in a globalized business environment.

Economists view the reforms as a bold attempt to balance productivity with social welfare. The more stringent sick leave rules may be anathema to labor unions but the combination of tax relief and pension reforms aims to mitigate the impact. Germany hopes to make it more economically resilient and still lead in Europe and by tackling absenteeism and inefficiency, the government will achieve that.

Finally, Germany’s new economic reform package is a key step towards modernizing its labor and fiscal policies. By making medical certificates mandatory from day one, stopping phone-based sick notes, cutting taxes, reforming pensions and reducing bureaucracy, the government is signaling that productivity increases while fairness continues to be the focus for workers and families.