Entgeltfortzahlungsgesetz Sick Pay

The Entgeltfortzahlungsgesetz (Continuation of Pay Act) requires German employers to continue paying employees’ full salary for up to 6 weeks during illness, after which sickness insurance takes over.

Key Takeaways

• Employers must pay full salary for up to 6 weeks during illness
• 4-week qualifying period applies for new employees
• Sickness benefit (Krankengeld) from health insurance after 6 weeks
• Medical certificate required from the first day of illness
• Special rules for long-term and repeated absences

What Is the Entgeltfortzahlungsgesetz?

The Entgeltfortzahlungsgesetz (EntgFG) is Germany’s Continuation of Pay Act, establishing that employers must continue paying employees during periods of incapacity due to illness. It protects employees from loss of income during short-term sickness.

Key Provisions

Employer Sick Pay (Section 3)

• 6 weeks full pay during incapacity due to illness
• Full salary continuation including regular allowances
• Calculated on gross salary including fixed components
• Calendar day basis (including weekends and holidays)

Qualifying Period

• 4-week qualifying period for new employees
• Section 3(3): No entitlement in first 4 weeks
• Pro-rata if employment began mid-month
• Re-employment - qualifying period restarts

Sickness Benefit (Krankengeld)

• After 6 weeks: Health insurance pays Krankengeld
• 70% of gross salary (capped at contribution ceiling)
• Maximum 78 weeks within 3-year period
• Coordination with employer and insurance

Medical Certificate Requirements

• Ärztliches Attest required from day 1 for continued pay
• Section 5: Employer may request certificate earlier in special cases
• Maximum 3 consecutive days without certificate possible
• Notification obligation to employer within expected timeframe

Long-Term and Repeated Absences

Long-Term Sickness

• After 6 weeks: Krankengeld from health insurance
• 78 weeks within 3 years maximum
• Rehabilitation measures may extend period
• Return to work support programs

Repeated Short Absences

• Employer right to require medical certificate from day 1
• Wiedereingliederung (return to work) programs
• Krankenrückführung - employer support during absence
• Documentation of absence patterns

BEM (Behinderungengleichstellung)

• Section 167(2) SGB IX: BEM procedure after 6 weeks absence
• Employer obligation to initiate BEM
• Employee consent required
• Reasonable adjustments considered

Common Scenarios

Scenario 1: New Employee Falls Ill

• Situation: Employee falls ill in first 4 weeks
• Result: No entitlement to sick pay from employer
• Health insurance: Krankengeld may apply
• Contractual: May provide enhanced terms

Scenario 2: Employee Exceeds 6 Weeks

• Situation: Employee ill for 7 weeks
• Result: 6 weeks employer pay, then Krankengeld
• Documentation: Medical certificates required
• Communication: Between employer, employee, insurance

Scenario 3: Frequent Short Absences

• Situation: Employee has many short sicknesses
• Result: Employer may require day-1 certificate
• Pattern monitoring by HR
• Support measures implemented

Compliance Checklist

• 6-week sick pay policy documented
• Qualifying period applied correctly
• Medical certificate requirements communicated
• Krankengeld coordination understood
• BEM procedure established
• Absence monitoring in place
• Return-to-work programs available
• Payroll adjustments automated