German Unions Push for State-Funded 'Heat Pay' as Economic Toll Reaches Millions per Day
Published on 07/17/2026 at 08:53 | Redaktion boerse-global.de
One in three German employees already feels burdened by heat at the workplace – that finding from a new survey by the German Trade Union Federation (DGB) has prompted the organisation to demand a state-subsidised “heat-related short-time benefit” for workers. Statistical analysis shows each individual hot day costs the national economy roughly €431 million.
The economic fallout is severe. According to the Prognos Institute, the June 2026 heatwave alone inflicted at least €6.3 billion in damage. Fully 97 percent of those losses stem from declining labour productivity. Manufacturing was hit hardest, with output losses of €1.9 billion, followed by the healthcare sector and retail trade.
A study by Allianz Trade spells out the link: once the thermometer hits 30°C, hourly productivity drops by three percent for each additional degree. At the same time, energy costs rise by 1.2 percent per degree. Across Europe, pronounced heat years shave 0.3 to 0.5 percent off gross domestic product.
As rising temperatures impact productivity and safety, having a clear risk management plan is essential. A free Risk Assessment Toolkit provides 41 ready-to-use templates and checklists to help you document workplace hazards and comply with regulations. Download the free Risk Assessment Toolkit
Safety risks heat up alongside temperatures
Occupational safety is also in the spotlight. Switzerland’s accident insurer Suva records a seven percent higher accident risk when temperatures exceed 30°C. The construction workers’ union IG BAU recommends the “WSS” rule: water, sunscreen and shade. Construction labourers are particularly exposed.
Experts advise taking short breaks every 15 to 20 minutes during extreme heat. Daily fluid intake should reach three to five litres. For indoor workplaces, clear guidelines apply: protective measures are recommended from 26°C and mandatory from 30°C. Above 35°C, a room is deemed unsuitable for work unless countermeasures are taken.
Dress code debate and flexible models
The heat is fuelling arguments about corporate culture. A Swiss Re manager recently criticised wearing shorts in the office as “weekend clothing”. Yet a survey of 3,600 participants found 66 percent consider shorts acceptable at work – as long as there is no client contact. Many financial firms are already relaxing dress codes once the temperature passes 25°C.
Some companies are experimenting with flexible hours. The building-services firm Zweipack in Allschwil cuts the working day to six hours when it gets above 30°C – without reducing pay. Over recent weeks that rule has been in effect almost continuously.
Adapting to extreme heat also means ensuring your health and safety documentation is up to date. The free Health & Safety Toolkit offers ready-to-use risk assessments and checklists aligned with UK regulations, helping you protect your team and stay compliant. Download the free Health & Safety Toolkit
Public support for businesses adapting to heat
Local authorities are helping companies adjust. In June, the district office of Hamburg-Mitte published a model heat-protection plan. Free climate-impact adaptation checks for buildings are also available. On 19 August, the RKW Competence Centre will hold a professional event focusing on corporate adaptation strategies and natural building cooling.
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