Care reform 2026: what employers and HR need to know now

Published: July 9, 2026
Last updated: 21. October 2026

On 4 June 2026, the Federal Ministry of Health the ministerial draft of the Care Reorganisation Act (PNOG) presented. For people in need of care and their families, it's the biggest change since the introduction of the care levels (Pflegegrade). And therefore also a topic for companies: in Germany, around 65 percent of caregivers care alongside their job. The questions this reform raises land with managers and HR. This article summarises what is planned, what it means for employees with caregiving responsibilities and how you as an employer can give orientation now.

Important upfront: the reform has not yet been adopted. The draft is in the legislative process; contents may change. The first measures are due to take effect on 1 January 2027.

The key points at a glance

PNOG ministerial draft of 4 June 2026, not yet adopted. First changes from 1 January 2027.
Care allowance becomes a relief budget (386–1,079 euros), from which substitute care will in future also be paid.
Newly assessed recipients (level 2/3) receive only half the budget for three months; for level 1, the relief amount is dropped.
A family care allowance as wage replacement is not envisaged.
Employer instruments remain: 10 days of acute leave, care leave (Pflegezeit, 6 months), family care leave (Familienpflegezeit, 24 months).

What the 2026 care reform is meant to change

The core of the reform: the previous individual benefits of the care insurance are transferred into four new budgets. This is meant to simplify use, but also shifts responsibility to families.

From 2027, the care allowance is to be replaced by a relief budget. At first glance, the monthly amounts rise: 386 euros at care level 2, 638 euros at care level 3, 889 euros at care level 4 and 1,079 euros at care level 5. In future, however, this budget is also meant to pay for benefits that used to be separate entitlements, for example self-organised substitute care. Those who use the budget for that have less left for ongoing care.

Three further points affect families directly. First: those assessed at care level 2 or 3 for the first time are to receive only half the relief budget in the first three months. Precisely in the acute phase, when costs are often highest. Second: for care level 1, the previous relief amount of 131 euros per month is dropped without replacement. Third: the thresholds for care levels 1 to 3 are to rise. In future, more points would be needed in the assessment to receive a care level at all.

The family care allowance examined in the coalition agreement, a wage replacement analogous to parental allowance, is not included in the draft. Employees who reduce their working hours for care continue to bear the income gap themselves.

What does the reform mean for employees with caregiving responsibilities?

For caregiving employees, the draft above all means: more personal responsibility in organising care and more financial uncertainty. Budgets have to be understood, weighed up and applied for. This work is usually done by the relatives, mostly between a meeting and the end of the working day.

The figures show how many people this affects: in Germany, around 5.7 million people are in need of care, the vast majority of them cared for at home. Among employed people over 45, roughly one in ten already cares for a relative. That's exactly the age group with the most experience and responsibility in the company.

Uncertainty from a reform of this magnitude affects everyday work: through loss of concentration, short-notice absences and, in the worst case, through quiet exhaustion that goes unnoticed for a long time.

What can employers do now?

The good news: the labour-law instruments remain untouched by the reform. Those who know them and communicate them actively give employees exactly the security that the legislator, amid the current works in progress, isn't providing.

Know and communicate the three leave options

In an acute care situation, employees can take up to ten working days of short-notice leave, with care support allowance (Pflegeunterstützungsgeld) as wage replacement from the care insurance fund. Beyond that, care leave (Pflegezeit) allows up to six months of full or partial leave, family care leave (Familienpflegezeit) allows up to 24 months of part-time work with at least 15 hours a week. Many employees don't know these rights at all. An internal overview, shared proactively, is the simplest first step.

Prepare managers

Care rarely announces itself. Managers therefore need less detailed knowledge of the reform and more confidence for the first sensitive conversation: listen, show options, find a flexible solution together. How to do that, we show here.

Information at the right time instead of an information flood

No one can memorise a draft law in advance. Knowledge is helpful exactly when it's needed: at the acute event, when applying for a care level, when returning from care leave. That's exactly how heyGuide supports employees and managers through caregiving situations, with time-triggered nudges, checklists and legally reviewed knowledge. More on that here.

Make care visible and appreciate it

Those who care for relatives do a lot, often invisibly. As a manager, HR or company, you can recognise and honour this work. With the Care Certificate you give caregiving employees something appreciative in hand that makes their commitment visible.

Conclusion: reliability is now an employer argument

The 2026 care reform will still change during the legislative process. What's already certain: more organisational responsibility falls on families, and caregiving employees will need their employers. Companies that create structures for caregiving situations now show reliability at a moment when much is uncertain. That retains exactly the people you least want to lose. If you want to stay up to date: in our newsletter we continue to follow the legislative process.

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