Germany: bill adopted to step up fight against illegal employment

On Thursday 13 November, Germany's Bundestag passed a bill to modernise and digitalise the country’s system for tackling undeclared work and financial crime. In future, the relevant department at the finance ministry will have independent access to the police information system and to tax and social security information. This should speed up investigations and, with the help of big data, enable the profiling and targeting of potential offenders at an early stage.
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Studies on the issue are scarce, but the German Economic Institute (IW) in Cologne estimated in early 2025 that at least 3.3 million people were working illegally in Germany in 2024 – a conservative figure. Researchers suggest the real number could be as high as 8 to 10 million. Companies surveyed reported losses of around 5% of their turnover, which would amount to roughly €300 billion a year. According to data from the FKS (Finanzkontrolle Schwarzarbeit, financial control of undeclared work)

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