The rules mean that employees can no longer report sick by phone, but need a doctor's certificate from the first day of illness.
"We cannot accept these high sick leave rates at our companies," said Friedrich Merz during a press conference, according to AP.
The measure is part of 34 reforms aimed at boosting the German economy, a package presented by the CDU leader and his governing coalition on Thursday.
In addition to the proposal for sickness compensation, proposals for tax cuts and a review of the pension system were also presented.
