Germany's government has announced a major reform package to strengthen the country's economy, with one proposal attracting widespread attention. The plan would introduce stricter sick leave rules, requiring employees to provide a doctor's certificate from the first day they take leave.

The measures form part of a broader strategy by Chancellor Friedrich Merz to improve productivity, support economic growth and tackle long-term financial challenges facing Europe's largest economy.

Germany proposes stricter sick leave rules

Chancellor Friedrich Merz unveiled a 34-point reform package designed to revive Germany's economy. The proposals include tax cuts, pension reforms, reduced bureaucracy and significant changes to the country's sick leave policy.

Among the most debated measures is a plan that would allow employers to demand medical proof from employees starting on the very first day of sick leave. The government believes the changes will improve workplace productivity and reduce unnecessary absenteeism.

Why is Germany changing its sick leave policy?

The German government says high employee absenteeism has become a growing concern. Officials argue that frequent sick leave is affecting businesses at a time when the country is dealing with slow economic growth, rising production costs and increasing pressure on public finances. Chancellor Merz has repeatedly warned that the country's high sick leave rates are hurting productivity and limiting economic performance.

Current sick leave rules in Germany

At present, German employees can usually stay home sick for up to three days without providing a doctor's certificate. In many cases, workers can also receive a medical certificate covering up to one week after consulting a doctor over the phone.

The government introduced these flexible rules in recent years to make healthcare more accessible and reduce unnecessary visits to medical clinics.

What changes does the government want?

The proposed reforms would make the rules much stricter. Employees would no longer be able to take short periods of sick leave without medical verification if their employer requests it.

Employers would gain the authority to ask for a doctor's certificate from the first day of absence. The government also plans to reduce the use of extended sick notes issued without an in-person medical examination.

How could workers be affected?

If Parliament approves the reforms, employees may need to visit a doctor much earlier whenever they take sick leave. The new rules would make self-certifying illness more difficult and require additional medical documentation before workers can remain away from work.

Supporters believe the measures will reduce misuse of the system and improve productivity. However, critics argue that the proposals could increase pressure on both employees and healthcare providers by creating more administrative work and additional doctor visits.

Broader economic reforms included

The sick leave proposals are only one part of the government's wider economic reform agenda. The package also includes:

• Income tax cuts for low- and middle-income households.
• Simpler tax filing and reporting procedures.
• Measures to reduce bureaucracy for businesses.
• Policies aimed at making Germany more attractive to investors.

The government hopes these reforms will improve competitiveness and encourage stronger economic growth.

Pension system also set for overhaul

Germany also plans significant changes to its pension system. The government wants to gradually raise the retirement age in line with increasing life expectancy.

It also plans to introduce recommendations from an expert panel to ensure the pension system remains financially sustainable over the long term. Officials say these changes will help protect pension payments while avoiding major increases in worker contributions.

Why is Germany acting now?

Germany's economy returned to modest growth last year after shrinking for two consecutive years. However, the recovery remains weak. The government expects economic growth of only 0.5% this year as the country continues to face several challenges, including high energy costs, weak private investment, an ageing population and stronger global competition.

According to Chancellor Merz, the reforms are necessary to prepare Germany for future economic challenges and restore confidence in the country's economy. Presenting the package in Berlin, he said, "We want to get Germany back on track."