Anyone who employs domestic help illegally wants to save money and effort. In doing so, they are taking considerable risks. This is not necessary. On closer inspection, it is worth registering and insuring your cleaner properly. Both sides benefit from correct employment, including financially. The 603 euro job (mini-job) is particularly practical for domestic employment. The tax savings offset a large part of the social security contributions.
What are the consequences of employing someone illegally?
If the authorities discover an undeclared job, there are various consequences. These usually affect the employer. First, there are social security contributions. The employer must pay the social security contributions that have been withheld retrospectively. Furthermore, there is a risk of a fine for non-registration, which can amount to several thousand euros. The cleaner will not get off scot-free either. Among other things, they will have to pay tax on the wages they have received.
Legal employment protects against claims for damages
The greatest risk arises when the domestic help is employed illegally and has an accident at work. The employer is then liable for the damages incurred. If, for example, the cleaner falls off a ladder while cleaning windows or slips on a wet floor, the employer faces considerable accident costs. In some cases, the employer may have to pay rehabilitation costs or even a lifetime pension if the cleaner suffers a serious accident. If the cleaner is employed correctly, accident insurance will cover these costs. In the case of a mini-job on a € 603 basis, the domestic help is automatically covered by accident insurance.
quitt helps you with this. quitt takes care of registering and managing your domestic help.
Save time with the quitt employment service:
- Correct employment contract and registration of your cleaner with all authorities and insurance companies
- Monthly payslips and annual tax certificate (up to € 4,000 tax credit for you)
- Payment of all social security contributions, taxes and insurance premiums
- Also: administration of midijobs (for wages higher than € 603 or if the cleaner already has other mini-jobs)
- Includes € 30 starting credit with the code "Putzperle"
A € 603 job in no time at all
If the requirements for a mini-job are met, it is particularly easy and tax-efficient to hire someone correctly. Registration is carried out using the mini-job centre's work cheque procedure. This takes 15 to 30 minutes. Services such as cleaning, ironing or washing are suitable for employment on a 603 euro basis. The domestic help does not necessarily have to earn 603 euros per month. They can also be employed on an hourly basis and flexibly. It is easy to ensure that the 603 euro limit is not exceeded across all mini-jobs performed by the domestic help.
Considerable tax savings
Social security contributions for a mini-job amount to 14.94%. This includes health insurance for the cleaner, levies, etc. The domestic help is therefore much better protected than in an undeclared job. The costs are borne by the employer, but these are largely offset by tax savings. Wage payments to a mini-jobber are tax-privileged. Once a month, around two-thirds of social security contributions can be saved as a tax deduction. For jobs of 2-3 hours per week, you even save costs, as the following calculation example shows.
Costs of a domestic helper on a mini-job basis (example)
Net monthly wage € 180.00
Social security contributions (14.94%) € 26.89
Tax savings/month € 41.37 (20% of € 206.89)
Effective costs/month € 165.52
Conclusion: If you employ a domestic helper for 2-3 hours per week and register them with the mini-job centre, you will actually save money!
Illegal employment is not worthwhile
The additional costs of legal employment are therefore only around 5% compared to illegal employment. However, the employer bears no risk in the event of an accident and does not have to fear any fines. By correctly registering the job on a € 603 basis, the financial risks for both sides are eliminated. The insurance company covers any accident and rehabilitation costs. The cleaner and employer have the peace of mind of knowing that they have avoided unnecessary risks and are acting transparently.
Further ideas
>>> Becoming self-employed as a domestic helper
>>> Possible forms of employment