Essential Insights into Health Care Benefits and Their Implications
Sick pay, known as Krankengeld in Germany, is an income replacement benefit for legally insured employees who experience work incapacity due to illness. This benefit is typically 70% of the regular gross wage, with a maximum of €128.63 per calendar day (as of 2025).
Unlike other benefits, a separate application for sick pay is usually not necessary. The health insurance fund will contact the affected individual directly. It's important to note that no taxes are payable on sick pay, but it is subject to the progression allowance, which may increase the tax rate applied to the remaining income.
The health insurance fund checks entitlement to sick pay and initiates payment after receiving a questionnaire filled out by the affected individual and an income certificate submitted electronically by the employer. Sick pay is paid retroactively for the entire period of work incapacity, and for each calendar month, sick pay is received for 30 days.
If work incapacity occurs due to a different illness, a new block period begins. A block period lasts for a maximum of 78 weeks within three years of the start of work incapacity due to the same illness. It's worth mentioning that several block periods can run concurrently.
Eligibility for sick pay varies. It does not usually extend to low-wage earners, unemployment benefit II recipients, students, and insured family members. Self-employed individuals may be eligible if they have taken out insurance against it. However, for self-employed individuals, eligibility for sickness benefit (Krankengeld) only exists if they have voluntarily chosen a corresponding insurance tariff with their statutory health insurance.
In private health insurance, sick pay is not automatically included, so privately insured individuals should consider private daily sickness allowance insurance. It's crucial to maintain a continuous record of work incapacity; each gap in work incapacity has financial consequences.
Sick pay is also available for inpatient treatment, hospital stays, and rehabilitation. If there are doubts about work incapacity, the health insurance company can obtain a medical opinion from the Medical Service of the Health Insurance.
It's important to note that the amount of sick pay varies depending on the individual's income and the type of insurance. From the gross sick pay, the employee's contributions to pension, unemployment, and long-term care insurance are deducted. The employer usually pays salary for the first six weeks, but sick pay kicks in after that period.
Lastly, bonuses such as Christmas money in the twelve months before the work incapacity are included in the calculation of sick pay. The duration of the benefit does not extend if another illness is added during work incapacity. It remains at a maximum of 78 weeks, with six weeks of continued pay included in the 78 weeks, so sick pay is actually paid for 72 weeks in most cases.
In conclusion, understanding sick pay in Germany can be complex, but with this guide, you now have a better understanding of how it works and who is eligible. If you have any further questions, it's always best to consult with your health insurance provider.
