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Continued Sick Pay in Germany (Lohnfortzahlung) – Definition, Rules & Practical Tips

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Continued Sick Pay in Germany (Lohnfortzahlung) – Definition, Rules & Practical Tips
Continued Sick Pay in Germany (Lohnfortzahlung) – Definition, Rules & Practical Tips

In Germany, employers are legally required to continue paying sick employees their regular wages for up to 6 weeks — governed by the Continued Remuneration Act (Entgeltfortzahlungsgesetz, EFZG). The entitlement arises after a 4-week waiting period in the employment relationship and applies to all employees, including part-time workers and those in minor employment (Minijob). Once the 6-week period expires, the statutory health insurance takes over with sickness benefit (Krankengeld).

What Is Continued Sick Pay?

Continued sick pay — officially termed Entgeltfortzahlung im Krankheitsfall (continued remuneration in the event of illness) — is the legal obligation of employers to continue paying an employee's regular remuneration for a limited period while no work is being performed due to illness. The legal basis is the Continued Remuneration Act (EFZG), enacted in 1994.

The colloquial term "Lohnfortzahlung" (wage continuation) is more commonly used in everyday speech than the statutory term "Entgeltfortzahlung". Both refer to the same obligation: the employer's duty to keep paying wages during a medically certified incapacity to work.

Comparison: Continued Sick Pay vs. Sickness Benefit

Feature Continued Sick Pay Sickness Benefit (Krankengeld)
Who pays? Employer Statutory health insurance fund
From when? From the 1st day of illness From the 7th week of illness
How much? 100% of gross remuneration Approx. 70% of gross salary
How long? Max. 6 weeks per illness Max. 78 weeks per illness

Who Is Entitled to Continued Sick Pay?

Eligible Groups

Under § 1 EFZG, all employees are generally entitled to continued remuneration, regardless of their employment type. This includes:

  • Full-time and part-time employees
  • Minor employment workers (Minijob, up to €556/month)
  • Working students with an employment contract
  • Apprentices (§ 19 BBiG)
  • Fixed-term employees

Not covered are the self-employed, freelancers, and civil servants (Beamte), who are subject to separate regulations under public service law.

The 4-Week Waiting Period

An often-overlooked detail: entitlement to continued sick pay does not arise from the very first day of employment. Under § 3 para. 3 EFZG, the entitlement only exists after an uninterrupted period of employment of four weeks. This waiting period applies regardless of whether the employee is still in their probationary period.

If a new employee falls ill in their third week, there is no entitlement to continued sick pay — even if they are still within the probationary period at that point. The probationary period and the 4-week waiting period are two entirely separate deadlines.

Special Case: Minijob and Working Students

Minijob employees have the same entitlement to continued sick pay as regular employees. However, there is a key difference afterwards: since Minijob workers are generally not covered by statutory health insurance, they receive no sickness benefit from the health fund once the 6 weeks have elapsed.

Working students with an employment contract are also entitled to continued sick pay. The same 4-week waiting period applies.

How Long Does Continued Sick Pay Last?

The 6-Week Rule

Under § 3 para. 1 EFZG, employees are entitled to continued remuneration for a maximum of 6 weeks (42 calendar days) per illness. The period begins on the first day of incapacity to work — regardless of whether it falls on a weekday, weekend, or public holiday.

Important in practice: the 6 weeks refer to the same illness, not to a period within the calendar year. If an employee suffers a herniated disc in January and the same condition recurs in September, the rules on recurring illness determine whether a new entitlement arises.

Recurring Illness: When Does the Period Restart?

Recurring illness is frequently a source of uncertainty in practice. § 3 para. 1 sentence 2 EFZG and the case law of the Federal Labour Court (BAG, Case No. 5 AZR 217/05) provide clear guidance:

A new 6-week period begins when:

  • It involves a different illness (regardless of the time elapsed)
  • It involves the same illness, but at least 6 months have passed between the end of the previous incapacity and the start of the new one
  • It involves the same illness, but at least 12 months have passed since the beginning of the first incapacity due to that illness

No new period if the same illness recurs within 6 months — in this case, the absences are aggregated until the maximum of 6 weeks is reached.

How Is Continued Sick Pay Calculated?

The Replacement Principle under § 4 EFZG

Continued sick pay is calculated according to the so-called replacement principle (Ausfallprinzip): the employee receives exactly the remuneration they would have earned had they not been ill. The basis is the regular gross remuneration.

Included:

  • Basic salary or hourly wage
  • Regular allowances and supplements (e.g. shift allowance, if regularly applicable)
  • Non-cash benefits (e.g. company car for private use)

Not included:

  • Overtime pay (as it is not regular)
  • One-off special payments (annual bonus, holiday pay, unless paid regularly)
  • Expense reimbursements (e.g. travel cost refunds)

Calculation Example

A full-time employee earns a gross monthly salary of €3,600. She falls ill and is absent for 4 weeks (28 calendar days).

  • Daily rate: €3,600 ÷ 30 days = €120
  • Continued sick pay for 28 days: 28 × €120 = €3,360 gross

The employer pays this amount in full — the health insurance fund pays nothing during this phase.

When Does the Entitlement End?

Transition to Sickness Benefit

Once the 6 weeks have elapsed, the employer's payment obligation ends. From that point, the statutory health insurance fund pays sickness benefit (Krankengeld) — amounting to approximately 70% of gross salary, up to a maximum of 90% of net salary. Sickness benefit is paid for the same illness for up to 78 weeks within a three-year period (§ 48 SGB V).

Loss of Entitlement

The entitlement to continued sick pay may lapse or be restricted if:

  • The illness is self-inflicted — for example, in the case of an accident caused by gross negligence (e.g. drink-driving)
  • The employee violates the duty to notify (§ 5 EFZG): upon falling ill, the employer must be informed without delay — as a rule on the first day of sick leave
  • The employee acts against the duty to follow medical treatment and thereby delays recovery

Checklist for Employers

What steps should employers take when an employee falls ill?

  1. Receive the sick notification — the employee must inform the employer without delay (§ 5 EFZG)
  2. Request a medical certificate (Arbeitsunfähigkeitsbescheinigung, AU) — no later than the third day of illness; employers may insist on it earlier
  3. Calculate continued sick pay — based on the replacement principle, gross remuneration including regular allowances
  4. Document the duration — record absences for the purposes of the recurring illness rules
  5. Monitor the 6-week deadline — communicate the transition to sickness benefit in good time (coordinating with the health fund if necessary)
  6. If self-inflicted illness is suspected — seek legal advice before stopping wage payments

Frequently Asked Questions About Continued Sick Pay

How long are employees entitled to continued sick pay?

A maximum of 6 weeks (42 calendar days) per illness, governed by § 3 para. 1 EFZG. The prerequisite is at least 4 weeks of uninterrupted employment. After that, the statutory health insurance fund takes over with sickness benefit.

What applies in cases of recurring illness?

A new 6-week period begins when a different illness is involved, or when at least 6 months have passed since the last day of the previous incapacity due to the same illness — or at least 12 months since the beginning of the first incapacity (§ 3 para. 1 sentence 2 EFZG, BAG Case No. 5 AZR 217/05). If none of these conditions is met, the absence periods are aggregated.

Is there an entitlement to continued sick pay during the probationary period?

Yes — but only after the 4-week waiting period under § 3 para. 3 EFZG has elapsed. If a new employee falls ill within the first 4 weeks, there is no entitlement yet. The probationary period has no bearing on the waiting period.

How is continued sick pay calculated?

The basis is the replacement principle under § 4 EFZG: the employee receives the remuneration they would have earned without the illness — including regular allowances. One-off special payments and overtime pay are excluded.

What happens after the 6 weeks of continued sick pay?

Once the 6 weeks are up, the employer's payment obligation ends. The statutory health insurance fund then pays sickness benefit of approximately 70% of gross salary — for up to 78 weeks within three years for the same illness (§ 48 SGB V).

Are Minijob employees entitled to continued sick pay?

Yes. Minijob employees are employees within the meaning of the EFZG and have the same entitlements as regular employees. However, after the 6 weeks they generally receive no sickness benefit, as they are usually not covered by statutory health insurance.

When is the entitlement to continued sick pay forfeited?

The entitlement lapses in cases of self-inflicted illness (e.g. an accident caused by gross negligence), violation of the duty to notify (§ 5 EFZG), or where the employee culpably delays recovery through their own conduct. In case of doubt, legal advice is recommended before stopping payments.

Conclusion

Continued sick pay is one of the central obligations under German employment law for employers. Six weeks of continued remuneration during illness — governed by the EFZG — apply to virtually all employees, regardless of their employment type. Particularly important in practice: correct calculation based on the replacement principle, handling of recurring illnesses, and awareness of the 4-week waiting period.

HR professionals should document sick notifications and absences systematically and inform employees clearly about their rights and obligations — this protects both sides.

Would you like to make your recruiting process more objective and efficient? The digital platform Aivy supports HR teams with scientifically validated aptitude diagnostics tools. Learn more about objective recruiting with Aivy.

Sources

Florian Dyballa

CEO, Co-Founder

About Florian

  • Founder & CEO of Aivy — develops innovative ways of personnel diagnostics and is one of the top 10 HR tech founders in Germany (business punk)
  • More than 500,000 digital aptitude tests successfully used by more than 100 companies such as Lufthansa, Würth and Hermes
  • Three times honored with the HR Innovation Award and regularly featured in leading business media (WirtschaftsWoche, Handelsblatt and FAZ)
  • As a business psychologist and digital expert, combines well-founded tests with AI for fair opportunities in personnel selection
  • Shares expertise as a sought-after thought leader in the HR tech industry — in podcasts, media, and at key industry events
  • Actively shapes the future of the working world — by combining science and technology for better and fairer personnel decisions
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