Support the balance of work and family – Prevent illegal employment

The Federal Ministry for Family Affairs, Senior Citizens, Women and Youth, the Ministry for Economic Affairs, Labor and Housing Baden-Württemberg, the Regional Directorate Baden-Württemberg of the Federal Employment Agency, and the Diakonie Württemberg Foundation jointly launched the pilot project "Vouchers for Household-related Services" at the end of March 2017. The Diaconal Work Württemberg is tasked with implementing it. We spoke with the project manager Petra Sperling about the background of the project, who is eligible for vouchers, and how they can be applied for.

Ms. Sperling, what is meant by "household-related services"? Does this only involve cleaning work, or can the term be interpreted more broadly?

That is not so easy to explain. We have compiled a list that specifies exactly what is understood by "household-related services." It is best for interested parties to have this sent to them.

What does the BMFSFJ, in collaboration with the Federal Employment Agency Baden-Württemberg and the Ministry of Economic Affairs Baden-Württemberg, hope to achieve by offering vouchers for household-related services?

The overarching goal is a better balance between family and work.

The increase in working hours for skilled workers and thus their greater self-protection. It makes a very big difference for their future pension whether a skilled worker works only 15 hours or 20 or 30. The more they work, the higher their pension points. At the same time, people who are already employed in domestic work should be brought out of the gray area or illegal work and into socially insured employment.

Who is eligible for the voucher? Does everyone get it?

A prerequisite for the pilot project that we are conducting here in Baden-Württemberg is that applicants must live in the district of Heilbronn or Aalen and that working hours are actually increased. It is aimed at those re-entering the workforce, unemployed individuals or job seekers with family responsibilities who want to take up employment of at least 25 - 30 hours per week instead of the usual 15 - 20 hours per week. It also targets professionals who have reduced their working hours to less than 25 - 30 hours due to caregiving responsibilities and wish to increase them to at least 30 hours.

What about the people who cannot raise further funds but still need support for that very reason?

They have no claim within the framework of this model project. It is assumed that many who work part-time do so because their share of care work is so large that they cannot do more.

But there are also people who work at their limit—both in terms of time and finances, as well as physically and mentally. For all of these, financial support through a voucher would be helpful.

Yes, but unfortunately, this does not apply to this group of people. However, it would be possible to temporarily reduce to a 60 percent position, for example, in order to then apply for the voucher and increase it again.

Do high earners also have a right to vouchers?

In principle, yes. The entire model is based on not being a model of disadvantage. It is not only meant to support people in the low-wage sector, but everyone who increases their working hours.

At what amount is the voucher issued?

There is a voucher subsidy of 8 euros. Here in Baden-Württemberg, it is assumed that one hour of domestic work on the black market is paid 10 to 15 euros. For this service to be provided by someone with social security, a wage between 20 and 23 euros per hour must be paid. Ultimately, with the voucher, you end up roughly at the amount you would have paid on the black market.

How many service checks can one purchase?

Per month, one is entitled to 20 vouchers.

Is there a time limit for redeeming the vouchers?

At the moment, there is only the limitation of the model project endeavor. Since the project runs until February 2019, vouchers can only be applied for until this time. There is no other time limitation.

Are there special regulations for single parents? For example, allowing them to apply for more vouchers?

In particular, this project is intended to address single parents. However, the basic requirement for everyone is that they are employed and increase their working hours.

I have to follow up again: The percentage of single parents who work full-time or close to full-time is very high. This is partly because these women need the money. At the same time, the burden of work and family, especially for single parents, is immense, and therefore a voucher is often desperately needed.

Can this group of people also apply for a voucher if they do not increase their hours?

This also applies to the group of single parents: Only if they increase their hours do they have a claim.

Where and how can the vouchers be applied for?

These can be applied for directly at the employment agencies in Heilbronn and Aalen. The colleagues there have developed forms in collaboration with us, which can be used to apply for the vouchers.

Are the forms already online?

We are still in the process of developing it. However, it is planned to make it available online in the future.

What about tax benefits? Can I deduct the remaining costs?

No. The types of household services are definitively defined according to § 35a of the Income Tax Act and are not tax deductible. However, there will certainly be special cases in the future that will need to be examined individually. It is a pilot project, and not everything can be anticipated in it.

Where can one find household helpers?

Together with the employment agencies in Heilbronn and Aalen, we are currently creating a list of service companies. In parallel, we are organizing kick-off events for May/June for both regions to present our project to the service companies and to engage them. It is important to us that the service companies sign a self-commitment to predominantly employ staff who are subject to social insurance contributions.

How can one recognize qualified service providers and how is it ensured that the household helpers are adequately paid?

As mentioned, we are working on lists. After the service has been provided, a proof of service and an invoice must be sent to the Diakonie, which reimburses the vouchers. The proof of service must be signed by both the service provider and the recipient. This ensures that no "black sheep" take advantage of the vouchers.

Does the employment of a domestic helper always have to be done through a service provider, or can one also find a domestic helper themselves, or legalize a domestic helper who has been working off the books through the voucher?

This is only possible if she agrees to be employed by a service provider.

And what if the housekeeper registers their own business?

No, not even then. She must be employed.

The disadvantage of hiring domestic help through an agency is certainly that you don't have a permanent housekeeper, but always a different one coming to your home, isn't it?

We will ensure in Aalen and Heilbronn that local service providers are used. It can certainly be arranged in consultation with the companies that there are a maximum of two household helpers who can stand in for each other in case of illness or vacation.

Aalen and Heilbronn. February 2019 is still a long way off. What can women and men do in the parts of Germany where the voucher is not yet offered?

It depends on how the project proves itself. Since the project runs until the end of February 2019, initial decisions will certainly be made or considerations will be taken beforehand.

I would advise those interested to inquire and follow up with the regional Federal Agencies. However, they can also approach their own employer and report about the project. If it is a large employer, they have a certain influence on the Federal Employment Agency and can advance the project.

Because the offer is also image-promoting for employers. They can advertise better support for balancing family and work in their region. At the same time, they could also offer the model to their existing part-time employees, allowing them to increase their working hours.

There is no legal claim to this voucher. It cannot be enforced in other regions.

Besides the vouchers, you also offer qualification measures. What does that encompass?

So far, there are hardly any qualification measures or further training opportunities in the field of home economics that service companies can offer to their employees. Many believe: "Anyone can clean, iron, and cook." We are planning a training-like qualification, but we are still in the early stages. We are currently examining how we can implement this. We aim to ensure that the work carried out on-site is of high quality. At the same time, these qualification measures should serve as a springboard for the women and men involved.

As a stepping stone to where?

Into further employment or even more qualified employment. For example, household assistance is always needed in youth welfare or childcare facilities. However, it can also serve as a foundation for training as an educator or later pursuing a degree in ecotrophology. There are certainly diverse life plans.

famPLUS - Together for your personal PLUS!