The EU member also announced plans for tougher quarantine rules as the country’s daily coronavirus cases continue to surge.
"It has turned out that a disproportionately high number of travelers returning (from high risk areas) tested positive," German Chancellor Angela Merkel told reporters following a meeting with leaders of Germany's 16 states.
Despite recent upticks in coronavirus cases, Germany has kept the number of its Covid-19 cases and deaths relatively low compared with other large European countries.
Germany recorded 237,936 coronavirus cases and 9,285 Covid-19 deaths as of August 27.
Regardless, the number of daily cases has risen steadily since early July and more alarming, it has accelerated in recent weeks.
In recent weeks, outbreaks traced back to weddings, family gatherings, and parties at beach destinations abroad have made headlines in local media, leading to calls to crack down on events at which social distancing rules may not be observed.
Likely from October, anyone who has to quarantine because they traveled to a high-risk country will no longer be entitled to compensation for lost wages, Merkel said.