Statutory Sick Pay in Germany (Krankengeld) – Definition, Calculation & Employer Obligations

Statutory sick pay (Krankengeld) is a benefit provided by Germany's statutory health insurance (GKV) that kicks in once the employer's six-week continued pay obligation ends. It amounts to 70% of gross salary (up to a maximum of 90% of net salary) and is paid for up to 78 weeks within a three-year period for the same illness. For HR professionals, the key obligations are the reporting requirements to the health insurer and the statutory duty to offer a workplace reintegration programme (Betriebliches Eingliederungsmanagement, BEM) from the sixth week of absence onward.

What Is Statutory Sick Pay (Krankengeld)?

Statutory sick pay is a wage replacement benefit paid to members of Germany's statutory health insurance when they are unable to work due to illness. The legal basis is found in §§ 44–51 of Book Five of the German Social Code (SGB V). Unlike continued pay, which is funded by the employer, statutory sick pay is paid directly by the health insurer.

Distinguishing Sick Pay from Continued Pay

The two terms are frequently confused, but they refer to different phases of support:

• Continued pay (Entgeltfortzahlung), weeks 1–6: The employer continues to pay the employee's full salary for up to six weeks per illness, as required by § 3 of the Continued Remuneration Act (EFZG).
• Statutory sick pay (Krankengeld), from week 7 onward: Once continued pay ends, the statutory health insurer takes over. The benefit is lower than the employee's regular net income.

In the case of inpatient hospital treatment, the health insurer pays statutory sick pay from the very first day of admission – without the six-week waiting period.

Who Is Entitled to Statutory Sick Pay?

All members of the statutory health insurance whose insurance status includes a sick pay entitlement are eligible, provided they have a medically certified incapacity for work.

Eligibility Requirements at a Glance

• Membership of a statutory health insurer with sick pay entitlement
• Medical certificate of incapacity for work (Arbeitsunfähigkeitsbescheinigung, AU)
• Illness causing the incapacity (physical or mental)
• The illness must not be the result of intentional conduct (§ 52 SGB V)

Who Is Not Entitled

Certain groups are excluded or subject to special rules:

• Marginally employed workers (mini-jobbers): Compulsorily insured under the GKV, but without a sick pay entitlement – unless they have voluntarily enrolled in a sick pay option
• Self-employed persons: No entitlement by default; they can, however, take out a voluntary tariff with sick pay coverage from their health insurer
• Civil servants (Beamt:innen): Receive government allowances (Beihilfe) and official pay; no GKV sick pay applies
• Privately insured individuals: Covered by their private health insurance in the form of daily sickness benefit (Krankentagegeld)

How Much Is Statutory Sick Pay?

Calculation Formula

Statutory sick pay is calculated under § 47 SGB V as follows:

• 70% of gross salary – but no more than 90% of net salary
• The GKV contribution assessment ceiling (Beitragsbemessungsgrenze) sets the upper limit (2025: €5,512.50/month)
• Statutory social insurance contributions (care insurance and pension insurance) are deducted from the sick pay amount

The maximum daily sick pay equals the contribution assessment ceiling divided by 30. The GKV-Spitzenverband (National Association of Statutory Health Insurance Funds) publishes the current daily rate on its website each year.

Calculation Example

An employee earns €4,000 gross per month (≈ €133.33/day).

• 70% of that = €93.33 statutory sick pay per calendar day (gross)
• After deducting social insurance contributions, the actual net payout is determined

Since €4,000 is below the contribution assessment ceiling, the cap does not apply in this case.

Tax Treatment: Progression Clause (Progressionsvorbehalt)

Statutory sick pay is tax-exempt under § 3 No. 1a of the Income Tax Act (EStG) – but it must still be declared in the annual income tax return. The reason: sick pay is subject to the progression clause. This means the benefit itself is not taxed, but it increases the tax rate applied to other income in the same year. Employees receiving sick pay for an extended period should therefore consider seeking tax advice early on.

How Long Is Statutory Sick Pay Paid?

The 78-Week Rule

Under § 48 SGB V, statutory sick pay is paid for a maximum of 78 weeks (546 days) within a three-year period for the same illness. This period is referred to as the block period (Blockfrist): it begins on the first day of incapacity due to that illness and runs for three years.

Important: the 78 weeks include the six weeks of employer-funded continued pay. An employee who has already received six weeks of full pay therefore has up to 72 weeks of statutory sick pay remaining.

If a different illness occurs, the clock resets – a fresh entitlement of up to 78 weeks can arise.

What Happens After Statutory Sick Pay Ends?

Once the maximum entitlement period is exhausted, several follow-on benefits may be available depending on individual circumstances:

• Transitional allowance (Übergangsgeld): If a rehabilitation measure has been approved, the German Pension Insurance pays a transitional allowance
• Citizen's income (Bürgergeld): If the person is in financial need, an application for Bürgergeld (SGB II) may be made
• Reduced earning capacity pension (Erwerbsminderungsrente): Where a lasting, significant impairment of working capacity exists, an application for this pension may be possible

For HR professionals, this means: once it becomes foreseeable that sick pay will run out, a conversation about next steps should be initiated – together with the employee and, where appropriate, the works council.

What Do Employers Need to Do When an Employee Receives Sick Pay?

Reporting Obligations and Employer Certificate

When continued pay ends, employers are legally required to issue the health insurer with an employer certificate (Arbeitgeberbescheinigung / Entgeltbescheinigung). This document contains information on the employment relationship and the most recent remuneration, enabling the insurer to calculate sick pay correctly.

The certificate is typically submitted digitally via the DEÜV procedure (Data Collection and Transmission Regulation). Late submissions can result in surcharges or claims for reimbursement.

Under data protection law, employers are not permitted to ask for a diagnosis – the nature of the illness is the employee's private matter. The only relevant fact is the existence of certified incapacity for work.

Workplace Reintegration Management (BEM) from Week 6

Once an employee has been unable to work for more than six weeks within a twelve-month period – whether continuously or in recurring episodes – the employer is legally obliged under § 167 para. 2 SGB IX to offer a Workplace Reintegration Management programme (Betriebliches Eingliederungsmanagement, BEM).

The BEM is not a compulsory meeting – the employee decides freely whether to participate. A refusal must, however, be documented. The aim of the BEM is to jointly explore how the employee can return to sustainable employment – for example through workplace adjustments, retraining, or a phased return to work (known as the Hamburger Modell).

If a BEM is not offered, this can work against the employer in the event of a dismissal on grounds of illness: labour courts treat the failure to offer a BEM as an indication that the dismissal was not proportionate.

HR Checklist: Managing Long-Term Sick Employees

• Continued pay correctly processed and terminated (after week 6)?
• Employer certificate submitted to the health insurer on time?
• BEM offer sent in writing and documented?
• Employee's response documented (acceptance or refusal)?
• Phased return-to-work plan prepared for when the employee comes back?
• Capacity planning updated to cover the absence?

Frequently Asked Questions About Statutory Sick Pay

When Does Statutory Sick Pay Begin?

Statutory sick pay begins once the employer's six-week continued pay obligation ends (§ 3 EFZG). For inpatient treatment, the health insurer pays from the first day of hospitalisation. If an employee falls ill with a new, different illness, the continued pay obligation starts again from scratch – regardless of any ongoing sick pay entitlement.

How Much Is Statutory Sick Pay Exactly?

Generally 70% of gross salary, capped at 90% of net salary. The calculation is based on the standard remuneration (Regelentgelt) from the last completed pay period before the onset of incapacity. The upper limit is set by the GKV contribution assessment ceiling (2025: €5,512.50/month). The GKV-Spitzenverband publishes updated daily rates each year.

How Long Is Statutory Sick Pay Paid?

A maximum of 78 weeks (546 days) within a three-year period for the same illness (§ 48 SGB V). The clock resets for a different illness.

Is Statutory Sick Pay Taxable?

Statutory sick pay is tax-exempt (§ 3 No. 1a EStG) but is subject to the progression clause (Progressionsvorbehalt). This means sick pay increases the tax rate applied to other income in the same calendar year. It must be declared in the annual income tax return.

Are Part-Time Employees Entitled to Statutory Sick Pay?

Yes – provided they are compulsorily insured under the statutory health insurance scheme and their insurance status includes a sick pay entitlement. The benefit is calculated on a pro-rata basis according to actual earnings. For marginally employed workers (mini-jobs), entitlement exists only if they have voluntarily enrolled in a sick pay option.

What Does an Employer Have to Do?

Once the six weeks of continued pay have elapsed, the employer must digitally submit the employer certificate (Entgeltbescheinigung) to the health insurer. In addition, once an employee has been absent for more than six weeks within a year, the employer is legally required to offer a BEM meeting (§ 167 para. 2 SGB IX). Employers may not ask for or record the employee's diagnosis.

Is There an Entitlement to Sick Pay for Burnout or Mental Health Conditions?

Yes. Mental health conditions are fully equivalent to physical illnesses for the purposes of statutory sick pay. A medical certificate of incapacity for work is required. According to the Fehlzeiten-Report published by the Scientific Institute of the AOK (WIdO), mental health conditions are now one of the most common causes of long-term illness in Germany – making the BEM particularly important in this context.

What Happens After Statutory Sick Pay Runs Out?

After 78 weeks, follow-on options include transitional allowance (Übergangsgeld, if a rehabilitation measure has been approved), citizen's income (Bürgergeld, if the person is in financial need), or a reduced earning capacity pension (Erwerbsminderungsrente). HR professionals should proactively initiate a conversation with the employee and, where applicable, work with the works council or representative for severely disabled persons to find a sustainable way forward.

Conclusion

Statutory sick pay is a core social insurance benefit that provides financial support for employees after six weeks of illness. For HR professionals, the key takeaway is this: employer obligations do not end when continued pay stops. Submitting the employer certificate on time, offering a BEM, and maintaining structured communication with the employee are both legally required and the right thing to do.

Employers who handle long-term sick employees well not only reduce their legal exposure – they also build trust within the organisation and improve the chances of a successful return to work.

If a position needs to be filled permanently after a long-term absence, the digital platform Aivy supports HR teams with scientifically grounded, objective talent assessment – for fair and structured hiring decisions. Learn more about objective talent assessment with Aivy.

Sources

• §§ 44–51 SGB V – Statutory Sick Pay. Federal Ministry of Justice, 2025. https://www.gesetze-im-internet.de/sgb_5/__44.html
• § 3 EFZG – Continued Remuneration Act. Federal Ministry of Justice, 2025. https://www.gesetze-im-internet.de/efzg/__3.html
• § 167 para. 2 SGB IX – Workplace Reintegration Management. Federal Ministry of Justice, 2025. https://www.gesetze-im-internet.de/sgb_9/__167.html
• § 3 No. 1a EStG – Tax exemption of statutory sick pay. Federal Ministry of Justice, 2025. https://www.gesetze-im-internet.de/estg/__3.html
• Statutory Sick Pay – Information for insured persons. GKV-Spitzenverband (National Association of Statutory Health Insurance Funds), 2025. https://www.gkv-spitzenverband.de
• Statutory Sick Pay. Federal Ministry of Health (BMG), 2025. https://www.bundesgesundheitsministerium.de/themen/krankenversicherung/leistungen/krankengeld
• Fehlzeiten-Report 2024 (Absenteeism Report). Scientific Institute of the AOK (WIdO) / AOK-Bundesverband, 2024. https://www.aok-bv.de/presse/pressemitteilungen/fehlzeiten-report/
• Workplace Reintegration Management in Practice. Federal Ministry of Labour and Social Affairs (BMAS), 2024. https://www.bmas.de