Heat, Germany

Heat is already draining workers and costing Germany billions

Published on 07/17/2026 at 07:24 | Redaktion boerse-global.de

German trade union calls for state compensation as extreme heat costs economy billions, with productivity dropping 3% per degree over 30°C.

Germany's Heat Crisis: Workplace Productivity and Compensation Demands
Heat is already draining workers and costing Germany billions Illustration mit AI erstellt übermittelt durch boerse-global.de

Germany’s growing heat problem is no longer just a public-health issue. It is a workplace issue, a productivity issue and, according to the German Trade Union Confederation, a matter for state compensation.

Yasmin Fahimi, who leads the Deutscher Gewerkschaftsbund (DGB), is calling for a new heat-related compensation payment. As extreme temperatures become more frequent, she says the state should compensate employees when work is suspended because of severe heat. The DGB is also urging a comprehensive strategy to protect workers.

A recent DGB survey of around 4,000 employees suggests the strain is already widespread. One in three workers says they suffers under the heat. The pressure is even greater for those working under tight deadlines: 48 percent in that group report feeling affected. The same is true for physically demanding jobs, where the burden rises noticeably.

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The economic hit is substantial as well. The DGB estimates that each hot day costs the German economy about 431 million Euro. Fahimi is therefore pressing for a broad package that includes financial compensation, better shading, free drinks and looser dress codes.

Separate analysis points to the scale of the damage in even starker terms. A Prognos study on the heatwave in June 2026 found total losses of at least 6,3 Milliarden Euro. Around 97 percent of that sum came from lower productivity. The manufacturing sector was hit hardest, with losses of 1,9 Milliarden Euro.

Allianz Trade data reinforces the pattern. From 30 degrees, labour productivity falls by three percent for every degree Celsius, while energy costs rise by 1,2 percent per degree. Market researchers estimate cumulative heat costs from 2026 to 2030 at 115 Milliarden Euro.

Politics is beginning to respond. On 16. Juli, the state parliament of North Rhine-Westphalia approved measures for stronger climate protection and better climate adaptation. Hospitals and care facilities are a main focus. During the June heatwave in NRW, around 1.200 deaths were recorded.

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The debate has also brought fresh calls for subsidy programmes to install air conditioning in daycare centres and schools. Environment Minister Carsten Schneider pointed to 100 Milliarden Euro from a special fund for heat protection. Municipal associations, however, say there is an investment backlog of more than 230 Milliarden Euro and want heat protection written into law as a joint public responsibility.

Employers are also under pressure to act directly. The construction union IG BAU is urging companies to do more for outdoor workers and recommends the WSS rule: Water, sunscreen, shade. Its advice includes:

  • Use SPF 50 and reapply every two hours
  • Provide drink flats (three to five litres a day for heavy work)
  • Shift working hours to cooler morning and evening periods
  • Take regular breaks in the shade

Germany and Switzerland still do not have a legal right to “Hitzefrei,” or being sent home because of heat. Some companies have already introduced their own measures. A Swiss packaging company shortens the working day to six hours from 30 degrees, with full pay compensation. So far, it has not led to any economic losses. Accident insurers also warn that once temperatures reach 30 degrees, the risk of workplace accidents rises by seven percent.

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