The current expense of maintaining salaries during sickness has reached an all-time peak, as per the Institute for Employment Research (IW).
More workers than before, boosted salaries, and a soaring illness rate: Employers had to shell out a record-breaking 69.7 billion USD in wages while employees were sick last year, as per a calculation by the pro-business Institute for the German Economy (IW). This signifies a significant surge over the past 14 years, with costs almost tripling, as the IW explained - albeit, this figure isn't adjusted for inflation.
The IW report, disclosed on Friday, relies on figures from the German Labor Ministry and statutory health insurance providers. As per these sources, the statutory health insurance providers recorded an average of 13.2 working days in 2010 where employees presented a medical certificate. In contrast, this figure hit 22.6 days in 2022, and predictions suggest it may hardly decrease in 2023.
The surge in the illness rate can be attributed to multiple influencing factors, according to the IW report. In aging workforces, more frequent age-related diseases like muscle and skeletal conditions are expected. Additionally, the proportion of mental health illnesses among all lost working days has consistently grown; these typically result in extended absences, averaging 40.4 working days. The impact of the COVID-19 pandemic on the illness rate is still unclear.
The report's author, Jochen Pimpertz, advocated limiting telephone sick leave to prevent potential misuse. In such instances, telephone sick leave should be issued only by a family doctor or a German-based physician. Moreover, employees should be expected to consult a local doctor if they're diagnosed with respiratory diseases during vacation abroad.
The estimated costs for employers to cover wages during sick leaves last year amounted to 64.8 billion USD gross. According to IW, this includes an estimated 11.9 billion USD in social security contributions, totalling 76.7 billion USD.
The 'disease case' contributing to the high sick leave figures could be age-related diseases like muscle and skeletal conditions, as observed in aging workforces. The 'disease case' also includes an increase in mental health illnesses, which often result in longer absences, averaging 40.4 working days.
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