BERLIN, March 30, 2026 Germany’s healthcare system is projected to face a €15 billion shortfall next year, with deficits potentially exceeding €40 billion by 2030, prompting an expert commission to propose reforms to the sick pay system. The statutory health insurance system, funded by contributions averaging 17.7% of gross salaries split between employers and employees, is under mounting financial pressure. Sickness benefits alone account for €21.6 billion annually, making them the fourth-largest cost driver for insurers.

An expert commission has recommended introducing partial sick pay, allowing payments in stages of 25%, 50%, 75%, or 100% to increase flexibility. The proposal aims to curb rising costs while maintaining support for ill workers.

No direct quotes from officials or stakeholders were provided in the verified facts. The commission’s plan aligns with measures seen in other European nations, though specific comparisons to systems in Norway, Spain, or Greece were not detailed in the available data. Germany’s healthcare system, one of Europe’s most comprehensive, has faced recurring budgetary challenges due to aging populations and rising treatment costs. The latest projections underscore the urgency of structural reforms.