Germany’s shadow economy thrives with 4M households hiring unregistered helpers
Over four million German households utilize unregistered domestic helpers, as per recent figures. While only 275,000 workers are officially registered, the vast majority operate informally—accounting for an estimated €8.6 billion in undeclared earnings last year alone. The issue highlights a widespread gap between legal requirements and common practice in household employment.
A survey revealed that a quarter of respondents claim their domestic helper does not wish to be registered. Others point to cost as a barrier, with 15% of households finding legal employment too expensive, even with available tax incentives.
More than a third of those hiring unregistered help argue their arrangement is not illegal. They often describe the work as casual, neighbourly assistance rather than formal employment. Meanwhile, only 8% blame bureaucratic hurdles for avoiding registration. Wages in the sector vary widely. Monthly pay for domestic helpers typically ranges from €180 to €450, while hourly rates sit between €15 and €25. Despite these earnings, the overwhelming majority—92%—remain unregistered, operating entirely outside official oversight.
The scale of unregistered domestic work in Germany reflects both financial and cultural factors. With just a fraction of helpers formally employed, the sector continues to generate billions in undeclared income. The gap between legal compliance and informal arrangements remains a persistent challenge for policymakers.
