An estimated nine out of ten German households employing cleaning help are operating outside of legal regulations, according to a new report from the Institute of the German Economy (IW) in Cologne. This translates to roughly four million households nationwide, and represents a significant issue in everyday family life.
Widespread Practice
The report details that tasks like cleaning, washing, and tidying are frequently handled with assistance that isn’t registered, contracted, or subject to tax contributions. A survey conducted by the IW revealed that a quarter of those employing help stated the worker preferred not to be officially registered for various reasons. Fifteen percent cited the cost of legal employment as prohibitive, while eight percent pointed to bureaucratic hurdles.
However, the most common justification given – by nearly 35 percent of respondents – was that the arrangement constituted “neighborly help,” and therefore didn’t require registration. The IW disputes this claim, asserting that the definition of “neighborly help” is being stretched beyond its intended scope, often covering what is, in reality, clearly taxable employment.
The cost of an unregistered or “mini-job” based household helper ranges from 15 to 25 euros per hour, depending on location, experience, and reliability. The IW projects that this figure will continue to rise through 2025.
Limited Oversight
While the German Parliament passed legislation in November granting increased powers to the financial authorities to combat undeclared work – utilizing artificial intelligence and digitalization to identify suspicious businesses – private households largely remain outside the scope of these efforts. The IW notes that these households “fall through the cracks,” as controls within private residences are legally restricted due to the inviolability of the home, as protected by Article 13 of the German constitution.
The report also indicates that private households are often not considered standard workplaces, leading to a reluctance to establish formal contracts even in long-term arrangements. Provisions like sick leave or vacation pay are frequently viewed as unnecessary or undesirable by those involved.
Frequently Asked Questions
What percentage of German households with cleaning help are estimated to be employing workers “off the books”?
Nine out of ten households with cleaning help are estimated to be employing workers without proper registration, according to the IW report.
What is the most common reason given for not registering household help?
Nearly 35 percent of respondents stated they considered the arrangement to be “neighborly help” and therefore not requiring registration, a claim disputed by the IW.
What steps, if any, have been taken to address this issue?
The German Parliament passed legislation in November to give financial authorities more power to combat undeclared work, but these measures largely focus on businesses and do not extend to private households.
Given the challenges of oversight and the prevalence of this practice, what impact might increased enforcement – if feasible – have on the affordability of household services for German families?
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