German sick pay follows a two-stage system: the employer pays full salary for up to six weeks under Entgeltfortzahlung (§3 EntgFG), and from week seven the employee’s health insurance (Krankenkasse) pays Krankengeld at 70% of gross pay. The split is the defining feature of German sick pay — the employer funds the first six weeks, the statutory health insurance fund funds everything after that. Understanding the transition point, the qualifying rules, and the reset mechanisms is essential for every employer operating in Germany.

This guide covers the employer’s six-week obligation under the Entgeltfortzahlungsgesetz (EntGFG), the Krankengeld handover, the waiting period rules, the 12-month reset window, and the special rules for the first four weeks of employment.

Key takeaways

  • The employer pays full salary for up to 6 weeks per illness under §3 EntGFG, including non-working days (weekends and public holidays).
  • From week seven, the health insurance fund pays Krankengeld at 70% of gross pay (capped at the contribution assessment ceiling).
  • The waiting period (Wartezeit) of four weeks applies only to employees in their first four weeks of employment — all other employees are covered from day one.
  • The 12-month reset rule means a new six-week employer period starts if the employee has been continuously free of the same illness for more than 12 months.
  • Sick pay can be reduced or offset against other income (e.g. accident insurance, pension) under §3 EntGFG.

The employer’s six-week period

§3 Entgeltfortzahlungsgesetz (EntGFG) is the operative provision: “Wird ein Arbeitnehmer durch Arbeitsunfähigkeit infolge Krankheit an seiner Arbeitsleistung verhindert, ohne daß ihn ein Verschulden trifft, so hat er Anspruch auf Fortzahlung des Arbeitsentgelts durch den Arbeitgeber für die Zeit der Arbeitsunfähigkeit bis zur Dauer von sechs Wochen.”

The employer pays full salary (not just base pay — all regular components including bonuses averaged over the preceding 12 months) for up to six weeks of continuous incapacity. Weekends and public holidays are counted within the six weeks — they are not excluded.

The six-week clock starts on the first day of incapacity. The employee must provide a medical certificate (Arbeitsunfähigkeitsbescheinigung, AU-Bescheinigung) from the first day of incapacity — the employer can request it on the first day.

Krankengeld from week seven

Once the six-week employer period ends, the employee applies to their health insurance fund (Krankenkasse) for Krankengeld under §44 SGB V. The statutory Krankengeld is 70% of regular gross pay, but capped at the daily contribution assessment ceiling (Beitragsbemessungsgrenze) for health insurance.

Key Krankengeld details:

Aspect Detail
Amount 70% of regular gross pay
Maximum Capped at the daily contribution assessment ceiling
Minimum Must not fall below the assessed contribution
Duration Up to 78 weeks within a 3-year period for the same illness
Waiting period None (if covered by statutory health insurance)

Employees with private health insurance (Private Krankenversicherung, PKV) do not receive Krankengeld from the statutory fund — they must have a separate Krankentagegeld policy in their private insurance contract. This is a common gap for self-employed employees and civil servants.

The waiting period for new employees

§3 Abs. 3 EntGFG introduces a four-week waiting period for employees who are in their first four weeks of employment. During this period, the employer is not obligated to pay sick pay. This rule exists to prevent employees from starting a new job while already ill and immediately claiming six weeks of paid leave.

The waiting period applies if:

  • The employee has not been employed by the employer for more than four weeks, and
  • The incapacity existed before or at the start of the employment relationship

If the employee becomes ill after the first four weeks, the full six-week Entgeltfortzahlung applies from the first day of the new illness.

The 12-month reset rule

Under §3 Abs. 1 EntGFG, the employer’s six-week obligation resets when:

  • The employee has been continuously free of the same illness for more than 12 months, or
  • The employee returns to work for at least six months after the previous illness, even if the same illness recurs within 12 months

The “same illness” requirement is important: a new illness (different diagnosis) starts a fresh six-week period regardless of timing. The 12-month rule only applies when the same condition recurs.

Example:

  • Employee is off work for 6 weeks with a back injury in March 2025
  • Returns to work in May 2025
  • Same back injury recurs in October 2025 (less than 12 months later)
  • The employer’s second six-week obligation is reduced by the weeks already used in March 2025

Salary during sick pay

The employer must pay the employee’s regular salary during the six-week period. Under §3 EntGFG, this includes:

  • Base salary
  • Regular overtime payments (if contractually agreed)
  • Shift premiums and allowances paid regularly
  • Commission (if averaged over the preceding 12 months)
  • Non-cash benefits that form part of the remuneration

What is excluded:

  • Occasional bonuses (Weihnachtsgeld, if paid discretely and not contractually guaranteed)
  • Expense reimbursements
  • Overtime that is not contractually regular

The 12-month average calculation for variable pay components is the standard approach and is consistent with the Federal Labour Court’s (Bundesarbeitsgericht) interpretation of “regelmäßiges Arbeitsentgelt.”

Employer Krankenkasse reimbursement

After paying six weeks of sick pay, the employer can claim reimbursement from the health insurance fund for the employee’s continued social security contributions under §78 SGB IV. The employer must continue making health insurance, pension, unemployment, and nursing care contributions during the six-week period and can reclaim these from the Krankenkasse for the period after the six weeks end.

The employer must submit the claim within a specific deadline — typically within four weeks of the six-week period ending. Late claims may be rejected.

Special situations

Simultaneous illness and unemployment

If an employee becomes ill during a period of unemployment, the rules interact with unemployment benefit (Arbeitslosengeld I). The employment agency (Agentur für Arbeit) pays Krankengeld at the rate of the unemployment benefit, not the employer’s sick pay.

Illness during parental leave

Employees on parental leave (Elternzeit) who become ill may be entitled to parental allowance (Elterngeld) continuation rather than Entgeltfortzahlung, depending on the timing and the nature of the leave.

Multiple employments

An employee with multiple jobs can claim Entgeltfortzahlung from each employer independently — but only for the same illness if the incapacity affects each employment separately. The six-week periods run concurrently across all jobs.

Common pitfalls

1. Not requesting the AU-Bescheinigung on time

Employers can request the medical certificate from the first day of incapacity. Waiting until day four (the old rule) is no longer required — and it creates uncertainty about whether the absence qualifies.

2. Paying less than full salary

The six-week period requires payment of regular salary, including all contractually guaranteed components. Reducing the payment to base salary alone is a breach of §3 EntGFG.

3. Not applying the 12-month reset

Employers who restart the six-week clock on each absence, even when the same illness has recurred within 12 months, overpay sick pay. The reduction rule under §3 Abs. 1 EntGFG requires the employer to subtract the weeks already used.

4. Forgetting to reclaim social security contributions

The employer’s right to reclaim social security contributions after the six-week period is time-limited. Missing the deadline creates an unrecoverable cost.

5. Confusing Krankengeld with Krankentagegeld

Krankengeld is the statutory benefit from the health insurance fund. Krankentagegeld is a private insurance product. Employees with private health insurance need separate Krankentagegeld coverage — the statutory fund does not pay them.

For more German context, see our guide to German annual leave entitlements and German parental leave.

You can take advantage of the free 14 days trial and explore Leave Balance.

A leave management system that tracks the six-week employer period, calculates Krankengeld transitions, and holds the 12-month reset rule on each employee record keeps the most common German sick pay calculation errors out of your payroll.

Frequently asked questions

How long does the employer pay sick pay in Germany?

The employer pays full salary for up to six weeks of continuous incapacity for the same illness. From week seven, the health insurance fund pays Krankengeld.

Is sick pay 100% of salary in Germany?

Yes — the employer pays 100% of regular salary during the six-week Entgeltfortzahlung period. Krankengeld from the health insurance fund is 70% of gross pay.

What happens after six weeks of sick pay?

The employee applies to their health insurance fund (Krankenkasse) for Krankengeld. The employer’s obligation ends after six weeks, but the employer continues making social security contributions and can reclaim them from the Krankenkasse.

Can an employer fire a sick employee?

Yes, but only under narrow conditions. The employer can dismiss during sick leave if there is an important reason (wichtiger Grund) under §626 BGB, or during the probationary period. Ordinary dismissal during sick leave is generally permissible but subject to social selection requirements under §1 KSchG for larger employers.

Do new employees get sick pay from day one?

Not always. Employees in their first four weeks of employment are subject to a four-week waiting period (Wartezeit) under §3 Abs. 3 EntGFG. The employer is not obligated to pay sick pay during this waiting period.

Sources

Last updated: 26 July 2026. This article is general guidance, not legal advice. Entgeltfortzahlung rules and Krankengeld ceilings change annually — confirm current figures with the applicable health insurance fund and consult a specialist employment lawyer.