Black work in cleaning: the collapse of the declared

Context

TL;DR

• In 2025, only 65'669 declared domestic employers (down from 68'247)
• Inspections: just 239 in homes (0,048% probability per year)
• Federal Council proposes a law revision in June 2026

Key facts

• What: Dramatic decline in domestic employers who declare
• When: 2025 (Confederation data)
• Where: Entire Switzerland (~500'000 households involved)
• Who: SECO, Federal Council, cantonal authorities
• Amount: From 2021 to 2025, decline from 100'000 to 65'669 declarants
• Inspection probability: 0,048% per year (1 inspection every 2'000 years per household)
• Suspicions reported: 4'367 in 2025 (2'045 concerning social insurance)

In 2025, the Swiss domestic labor market reached a new low: only 65'669 employers regularly declared their staff, down from 68'247 the previous year. The figure is even more alarming when compared with 2021, when declarants numbered around 100'000: in four years, the number fell by one third.

The contrast with the actual estimates is staggering. The Confederation calculates that around 500'000 households throughout Switzerland make use of the services of a domestic worker. If only 65'669 use the official declaration channel, this means that more than 434'000 households presumably operate in the undeclared sector — an underground economy representing 86% of the sector.

The simplified procedure: how it works (and why it is ignored)

The SECO simplified procedure exists precisely to make things easier for those who employ domestic staff. It allows contributions to social insurance (AVS, AI, IPG, AD) and withholding tax to be regularized through a streamlined process, without bureaucratic complications. Yet the number of people who use it continues to fall.

The reason? Mainly the extremely low probability of being inspected. In 2025, the cantonal bodies carried out a total of 14'450 business inspections, focused on construction, hospitality and commerce. Private households, however, remain off-limits. As far as homes are concerned, only 239 inspections were carried out — a laughable figure.

Compared with the ~500'000 households involved, these inspections represent a statistical probability of just 0,048% per year. In practical terms: each household has a probability of being inspected once every 2'000 years. It is therefore unsurprising that undeclared work proliferates.

Operational details

Why undeclared work is spreading: minimal risks, maximum incentives

The logic is simple: the cost-benefit balance is completely skewed in favor of undeclared work. For a family that hires a domestic worker for 20 hours per week, declaring the employment means paying social insurance contributions. The employer’s tax burden increases significantly.

At the same time, the probability of a penalty is practically zero. The 239 inspections in 2025 represent such a tiny fraction of the total that the perceived risk is nil. Even when inspections take place, they are almost always based on reports (4'367 suspicions were reported in 2025), not on systematic checks. Those who declare remain a minority, and the safety margin for those operating undeclared is enormous.

The gap between those who declare and actual workers

A critical aspect that is often overlooked: among the 65'669 declarations in 2025, a significant proportion comes from the formal sector (cleaning agencies, professional services), not from private households. This means that the number of people actually working in private households without being declared is even greater than the number of “families not declaring” suggests.

Cleaning women — and they are predominantly women — therefore operate in a regulatory limbo: without a written contract, without social security coverage, without protection in the event of an accident. The social cost falls entirely on them, depriving them of fundamental rights and protections.

The Federal Council’s proposal of June 2026: a change of course?

In June 2026, the Federal Council presented a proposal to revise the law against undeclared work. The new legislation is primarily aimed at strengthening cooperation and data exchange between authorities (federal, cantonal, municipal). This would allow for greater administrative transparency by synchronizing tax, social security and municipal databases.

However — and this is crucial — the proposal does NOT introduce specific measures to increase inspections in private households. The question therefore remains open: without more effective inspections, how can employers’ behavior ever change?

Key points

How to become compliant: step-by-step procedure

Although the path toward regularization remains complex, it is technically possible. Anyone who employs a domestic worker can access the SECO simplified procedure, which centralizes the reporting of contributions and taxes. The process requires:

1. Initial registration: register with SECO using the personal details of the employer and domestic employee. 2. Reporting remuneration: declare the gross monthly or annual amount and the number of hours worked. 3. Periodic payment: pay social security contributions (AVS, AI, IPG, AD according to the applicable rates) and withholding tax directly through SECO. 4. Documentation: keep contracts and payment receipts for any possible checks.

The system is designed to be simple, but still requires a certain degree of administrative discipline. Many families choose undeclared work precisely because they prefer to avoid this bureaucracy.

What concretely changes with the 2026 revision

The federal proposal focuses on information sharing between authorities. This means that tax, social security and municipal databases will be better synchronized. An employer who declares their income but does not declare their domestic staff will be more easily identified thanks to this interoperability.

The structural problem remains: increasing direct inspections in homes is legally and practically complicated. The new legislation therefore relies primarily on administrative transparency, not widespread inspections. An improvement, certainly, but probably insufficient to reverse the trend.

Next steps to become compliant

If you are a Swiss employer and want to regularize your relationship with a domestic worker, SECO provides a dichiarazione semplificata and online guides. You can also use calcolatore di stipendi to assess how regularization would affect your household budget, so that you can make an informed decision.

The Federal Council remains committed to reducing undeclared work in the domestic sector. With the 2026 revision of the law, administrative tools should improve. The real change, however, will depend on the political will to genuinely sanction offenders—not only on improving information systems.

Source: tio.ch