Undeclared care work poses challenges for the EU.

A significant amount of paid care work takes place within the European Union (EU). According to figures highlighted by the European Labour Authority (ELA), an estimated 6.8 million workers across the EU provide care and domestic services without being properly registered with the tax authorities and social security funds. Within this group, approximately 2.1 million individuals are specifically engaged in the care sector. A recent report published by Eurofound delves into this issue and outlines potential policy approaches.

Migrant women disproportionately affected

Women with a migration background represent the largest group performing undeclared care work. These women face a high risk of exposure to poor working conditions and exploitation. The reasons for this are cultural, bureaucratic or economic in nature, including a lack of knowledge about the system, low levels of education or the absence of a legal right of residence. For regular employees, however, care work is often simply a second job to supplement their personal income. 

Scale difficult to estimate

The true scale of undeclared care work is difficult to measure. When it comes to care activities, the boundaries between undeclared care work and informal care, as well as between direct and indirect care work, are often blurred. This is because emotional support, housework, gardening and even driving and babysitting are often requested in addition to direct care tasks. It is estimated that undeclared work accounts for almost one third of employment in the care sector. 

Systemically important work, poor job quality

Undeclared care work is illegal. It involves the evasion of both taxes and social security contributions. If care workers lack social protection from other sources, they are left vulnerable in the event of an accident or illness and accrue fewer pension rights for their old age. Employment rights, such as paid leave, often cannot be claimed, and financial insecurity is high. Workers in the care sector are systemically relevant. However, their personal circumstances combined with poor working conditions create a vicious cycle detrimental to both wellbeing and health, which is difficult to break. The hidden nature of undeclared care work makes it almost impossible for formal workers' representatives or trade unions to provide assistance. 

Recommendations

According to the authors of the report, successfully tackling undeclared care work can be described using five key concepts in the 5R approach: respect, reduction, redistribution, remuneration, and representation of all forms of care work in politics, among social partners and in the public sphere. They also make a series of recommendations, including:  

• Tackling the root causes of undeclared care work, for example, by providing a larger, publicly funded range of care services, innovative combinations of formal and informal care and a legal framework that helps private households fulfil their role as employers. 
   
• Adequately integrating workers, particularly migrant women, into EU labour markets. 
   
• Establishing a reference framework for the skills required in different care occupations.
   
• Enacting comprehensive gender equality legislation to eliminate structural inequality in care work.
   

The authors conclude that policy changes are needed alongside a fundamental shift in societal attitudes and cultural norms.