Hamburg uncovers €15.4M in losses from undeclared work crackdown

A sweeping investigation into undeclared labor nets millions in fines and jail time. Why Hamburg's crackdown is just the beginning.

, and Administrator

2026 February 27 . 9:06 AM

1 min read

The image shows an old map of the city of Hamburg, Germany, with a black border around it. The map... — The image shows an old map of the city of Hamburg, Germany, with a black border around it. The map is detailed and shows the streets, buildings, and other landmarks of the area. The text on the map provides additional information about the city, such as its population, landmarks, and streets.

High Losses Due to Black Market Work in Hamburg - Hamburg uncovers €15.4M in losses from undeclared work crackdown

Hamburg's Financial Control Unit for Undeclared Work uncovered nearly €15.4 million in financial losses during 2024. The figure comes after extensive checks on businesses and individuals across the city. Authorities also launched thousands of criminal and administrative cases linked to undeclared labour and wage violations.

Last year, inspectors from the Finanzkontrolle Schwarzarbeit carried out 5,282 inspections in Hamburg. These included 989 company audits and 10,355 checks on private individuals. The investigations revealed widespread issues, from unpaid taxes to illegal employment practices.

The €15.4 million in damages covered several areas. Unpaid social security contributions, withheld minimum wages, and missing vacation fund payments formed a large part of the total. Wrongfully claimed social security benefits and evaded taxes also contributed to the losses.

As a result, authorities initiated 2,900 criminal proceedings. Courts responded by issuing 26 custodial sentences and fines amounting to €676,020. On top of this, 1,600 administrative offences were recorded, with 140 cases specifically tied to minimum wage violations. Fines for these breaches reached €837,650.

The crackdown highlights ongoing challenges with undeclared work in Hamburg. The recovered funds will go toward unpaid wages, taxes, and social security contributions. Meanwhile, the high number of prosecutions signals stricter enforcement against labour law violations.