Sick leave costs Germany billions each year, study finds

Publication date: 2026-01-27

 

A study by Germany’s Association of Research-Based Pharmaceutical Companies (VFA) reveals that sick leave among employees is costing the economy billions annually.

The report shows that the sick leave rate in 2025 was 5.7 percent – about two percentage points higher than the average between 2003 and 2019. This translates into a loss of up to one percent of annual economic output.

Chief economist Klaus Michelsen estimated that total losses over the past four years could reach €160 billion, excluding the burden on health insurance funds.

Respiratory illnesses such as influenza, RSV, and Covid-19 were identified as the main drivers of the surge in sick leave between 2021 and 2022.

Sources – Agencies

 
A study by Germany’s Association of Research-Based Pharmaceutical Companies (VFA) reveals that sick leave among employees is costing the economy billions annually.
The report shows that the sick leave rate in 2025 was 5.7 percent – about two percentage points higher than the average between 2003 and 2019. This translates into a loss of up to one percent of annual economic output.
Chief economist Klaus Michelsen estimated that total losses over the past four years could reac...

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