Germany nursing sector faces reform amid projected caregiver shortages

Germany is facing a significant nursing crisis, with projections suggesting a shortage of between 280,000 and 690,000 caregivers by 2049. While the government has implemented measures such as a dedicated minimum wage and revised training laws, the sector continues to struggle with staff departures and a growing demand for care.

A major legislative overhaul, the Nursing Reorganization Act (Pflegeneuordnungsgesetz or PNOG), is currently under development. The reform aims to replace the existing care allowance (Pflegegeld) with a new relief budget (Entlastungsbudget) starting in 2027. This new system would bundle various individual benefits into four distinct budgets to reduce bureaucracy and increase flexibility for those receiving care.

The draft legislation also proposes more frequent time limits on care levels for individuals showing prospects of improvement, a move that could lead to more frequent reassessments. While the cabinet was expected to decide on the draft earlier, the timeline has shifted due to government restructuring, with a decision now anticipated in September 2026. Additionally, payment schedules for existing care allowances in September 2026 are expected to follow two established banking patterns depending on the specific care fund.