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Post: Household helpers: Why is registration profitable?


Most domestic helpers are not registered in Germany. Once the matter becomes official, both parties benefit.

Household helpers are still rarely registered in Germany. The German Economic Institute (IW) came to this conclusion in an analysis published on Saturday.

According to our estimates for years, the number of domestic helpers working illegally, uninsured and without accident insurance is over 90 percent.

The author of the study is Dominik Enste

How many households are receiving aid?

For the current estimate, IW evaluated the recently published results of the “Socio-Economic Panel” (SOEP), a long-term survey representative of private households. According to the company’s own data, approximately 4.3 million households with regular or occasional employment received benefits in 2021, or about one in ten households.

If reporting households (end June: 290,000) are deducted, employees subject to social security contributions and the self-employed, there is a good gap of 3.9 million households, according to IW. In them, people clean, mow or help with daily life.

Is registration mandatory?

Yes, registration is mandatory. If neither taxes nor social security contributions are paid for a job, it is illegal for both employers and employees.

  • Earnings limits, vacation: Mini job: What you need to know

Where do I need to go?

If the domestic helper earns no more than 450 euros per month, he can register through the mini job centre.

What does the household helper get by registering?

Unregistered domestic workers usually have health insurance through their family insurance or are unlikely to receive a pension above the minimum level. When you register, you are socially protected. They have

  • pension insurance
  • accident insurance
  • Continuation of salary payment in case of illness
  • Vacation and protection against dismissal

  • Prediction: Millions of people have pensions below 1,500 euros

Can I benefit from registration?

Anyone who has registered a cleaner in their own home can also apply. Take advantage of tax deduction. 20 percent of the cost of the mini-business at home is deducted from income tax. This is a maximum of 510 euros per year or 42.50 euros per month.

What happens if the house helper is not registered?

Employing an unregistered domestic servant is considered illegal work and is therefore an administrative offense. This could cost a fine of up to 5,000 euros. Additionally, the insurance company may claim back the costs of medical treatment in the event of an accident if the mini-business is not registered.

What threatens aid?

Employees should also expect fines. And if social security contributions and taxes aren’t paid, refunds may be due.

Why are many charities not registered?

Enste, the author of the study, explained that both parties are generally hesitant to sign up for a mini business center. “Although domestic helpers often work in the home for many years and a good relationship of trust is established, households often do not want to enter into contractual obligations.”

For many people, a private home is not a workplace like any other. “Continuing to pay wages in the event of illness or while the domestic help is on holiday is an unusual and undesirable obligation.” Conversely, according to Enste, many people find it unattractive to pay social security contributions because they do not receive any additional benefits.

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Source: ZDF

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