Undeclared work is booming: there is a strong focus on domestic help in Germany!

Undeclared work is booming: there is a strong focus on domestic help in Germany!

A shock for everyone who thinks that domestic help is a legitimate job! According to a current study by the Cologne Institute for the German Economy (IW), an incredible 91 percent of domestic helpers in Germany are employed illegally. As the Funke media reports, the number of registered household helpers fell by 4.5 percent to around 246,700 in 2024, while sales with illegal helpers rose by a breathtaking 15 percent to over eleven billion euros. An alarming trend, because 2.87 million German households regularly employ domestic helpers, while 1.15 million casual workers continue to work in the informal economy.

The shadow economy is booming!

The study reveals that the increase in undeclared work in Germany has increased by 8.4 percent this year. Despite the possibility of registering a household help easily via the mini-job center, many employers do not consider it necessary. Only 44,000 household helpers are currently employed subject to social security contributions. While some countries such as France and Belgium promote the legal sector through voucher models and tax incentives, Germany shows a different direction.

A look into the future: In 2025, the earnings limit for mini-jobs is expected to rise, which will give household helpers more scope for working hours and thus higher earnings, reports the mini-job headquarters magazine. Employers also benefit from consistently low taxes and an uncomplicated registration process. However, the legal protection that comes with registering with the mini-job center is still an obstacle for many. Despite all the advantages, social security contributions and bureaucratic hurdles seem to have a deterrent effect, which continues to lead to a flourishing market for undeclared work.

For more information on registering household helpers and the new regulations, we recommend visiting the Minijob headquarters.