Across Europe, sick leave is on the rise and the cost is becoming too large for governments to ignore. From Germany’s growing absenteeism rates to France’s sharp increase in sick pay spending, national systems are beginning to question the long-term sustainability of current policies.

At first glance, this may seem like a public health issue. But in reality, it reflects a wider breakdown in alignment between healthcare systems, workplace policy, and economic resilience; and raises important questions around regulatory oversight, access to appropriate treatments, and employer responsibility.

A System Under Strain

France, Norway and Germany have seen a significant uptake in sick leave since the pandemic, with contributing factors ranging from ageing populations and rising mental health needs to shifting post-COVID attitudes around illness in the workplace.

Generous sick pay systems – such as Germany’s full salary for the first six weeks of leave or Norway’s up-to-a-year coverage – have long been seen as progressive. But recent data shows that countries offering the highest replacement rates are now seeing the largest economic and operational pressures. The German Economic Institute estimates that sick pay costs for employers more than doubled from €36.9bn in 2010 to €76.7bn in 2023.

In response, governments are moving fast. France has introduced tighter restrictions on GP-issued sick leave and is tackling benefit fraud by redesigning sick leave certificates. Norway, meanwhile, faces IMF pressure to scale back its disability and sickness benefits, which now represent 8% of GDP, quadruple the OECD average.

A UK Perspective: A Different Kind of Crisis

In contrast, UK sick pay is among the lowest in Europe. Statutory Sick Pay (SSP) currently stands at £118.75 per week, which may explain why UK workers take significantly fewer sick days than their European peers.

But this brings its own challenges. Instead of absenteeism, the UK faces a presenteeism problem – with many workers continuing to work through illness, risking longer-term health consequences and lower productivity.

According to the Department for Work and Pensions, ill health in the working-age population now costs the UK economy between £240bn and £330bn annually, with mental health-related inactivity driving much of the rise. Spending on health-related benefits has surged by £16bn since 2020, and current forecasts suggest this will continue to grow in the coming years.

What This Means for the Life Sciences Sector

This sick leave crisis is not just an HR issue. It’s an opportunity for cross-sector innovation, where public health policy, regulatory reform, and the pharmaceutical industry can work in alignment to drive sustainable change.

At Woodley BioReg, we believe that:

  • Regulators and policymakers must continue to evolve evidence-based frameworks that support access to the most effective therapies, particularly in areas like mental health and chronic disease.
  • Employers and occupational health providers need to adopt more proactive models that prioritise early intervention and rehabilitation over long-term absence.
  • Pharmaceutical companies have a role to play in delivering not only treatments, but also real-world evidence and data to support healthcare decision-making.

The cost of inaction is too high. A coordinated response across the regulatory, clinical, and workplace environments is needed to support a healthier, more resilient workforce. And to ensure that the systems designed to protect workers are not the very ones that threaten the economies they serve.

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