Undeclared work in private households: Illegal and risky

Undeclared work in private households in Germany

Registering a private domestic worker officially is required by law. As an employer in a private household, you must officially register your cleaner, nanny, or care worker at the beginning of the employment, regardless of whether it is a mini job, a midi job, a part time job or full time employment.

Despite these clear regulations, around 3.6 million households in Germany employ their domestic worker without registration. For employees, undeclared work means that they are neither covered by social insurance nor accident insurance and have no right to paid vacation, continued payment of wages in case of illness or maternity protection. Pension entitlements also cannot be built up, which increases the long term risk of poverty in old age. Many are unaware that a fair and legal employment relationship is important and necessary even in a private household.

You stand for legal employment, but your household help does not

In many cases, it is employees who do not want to be registered. The reasons for this are often uncertainty, fear of an allegedly high bureaucratic effort or a lack of knowledge about the actual amount of wage deductions. At the same time, many do not know how simple and affordable legal employment in a private household is and what security it offers.

We therefore recommend that you communicate openly during your search for a domestic worker that only official employment is an option for you. This provides security for both sides from the very beginning and creates a trusting working relationship.

You can find further helpful arguments with which you can convince your domestic worker in the following article: “My domestic helper does not want to register – how do I convince with quitt?”

The responsibility for registration lies with the employer

Only you as the employer can create a legal and fair working relationship with your domestic worker. Official registration offers clear advantages for you. These include tax benefits of up to 510€ per year for mini jobs and up to 4.000€ per year for employment subject to social insurance. You are covered in the event of workplace accidents and receive reimbursement for illness or pregnancy related absences thanks to employer insurance.

With registration, you also protect yourself against high fines of up to 25.000€, back payments of social security contributions and possible medical costs in the event of a workplace accident involving your domestic worker.

Why legal registration reduces undeclared work sustainably

Every correctly registered domestic worker makes an important contribution to reducing undeclared work in private households. Legal employment creates fairer working conditions, gives your domestic worker social security and protects you from financial consequences. It enables a trusting and stable working relationship and ensures that all legal requirements are met.

Legal employment is simple, safe and an important step against undeclared work in private households.