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Study Finds Nine in Ten Paid Household Jobs in German Homes Are Off the Books

New enforcement powers for customs investigators face constitutional limits in private homes.

Overview

  • The Cologne-based IW estimates that in 2023 roughly 4.0–4.4 million households employed domestic help without legal registration, leaving over 90% of paid household work informal.
  • IW calculates about €8.63 billion in untaxed turnover from these arrangements in 2023, implying lost income tax and social contributions and leaving workers without insurance or paid leave.
  • Only around 275,000 domestic roles are registered as legal minijobs in private households, with very few positions covered by full social insurance.
  • Typical pay for helpers working informally or on a minijob basis ranges from €15 to €25 per hour, depending on region and experience.
  • Households cite the helper’s wish to avoid registration, perceived high costs, and mislabeling as neighborhood help as key reasons, while a November law expands FKS use of AI and digital tools yet Article 13 protections limit checks inside private homes.