In 2024, Germany's Customs revealed a staggering 766 million euros in damages attributed to undeclared work, marking a significant increase from the previous year's 615 million euros. Finance Minister Lars Klingbeil emphasized the urgent need for robust measures to combat this issue, announcing a new legislative framework aimed at enhancing financial control over illicit labor.
The plan involves leveraging automated data analysis and artificial intelligence to target specific industries, notably hairdressing, cosmetics, and nail salons. Klingbeil, who presented the annual report in Hamburg, underscored the imperative to protect individuals from exploitation while securing essential state revenues.
Despite challenges such as personnel shortages, he expressed confidence in the potential for greater enforcement against tax fraud and illegal employment. This concerted effort aims not only to address the financial implications of undeclared work but also to ensure a fairer labor market across Germany.
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