Irregular domestic work, such as when contributions are not paid to domestic workers or caregivers, exposes the employer to legal and criminal sanctions. With the 2024 budget law, the government has intensified the fight against tax and contribution evasion in the domestic work sector, introducing new measures to
combat illegality.
In this guide, let’s find out what happens if you don’t pay contributions for domestic workers and caregivers, the applicable risks and penalties, and the changes introduced in 2024.
Fight against irregular domestic work: what are the risks
The 2024 budget law introduced important changes to combat undeclared work in the domestic sector. The government has strengthened coordination between the INPS and the Revenue Agency, creating a more efficient communication system to track the contribution situations of domestic workers. This system uses advanced technologies for data exchange, preparing pre-filled statements and compliance
letters.
In addition, targeted checks will be conducted to reconstruct the income and contribution situation of domestic workers, using the data provided by employers when hiring.
What happens if you don’t pay your contributions
Failure to pay social security contributions for domestic workers or caregivers involves a series of legal risks. Mandatory contributions must be paid within the time limits established by law, and in case of non-payment, civil, administrative and criminal penalties are incurred, depending
on the seriousness of the default.
Civil sanctions
Civil sanctions are aimed at strengthening the contribution obligation and at compensating for the damage caused to social security institutions for non-payment. There are two main cases:
- Contribution omission: when contributions are not paid within the established deadlines. In this case, a penalty is applied proportional to the official reference rate increased by 5.5 points, up to a maximum of 40% of the total amount due
- Contribution evasion: when employment relationships or salaries are hidden, a penalty of 30% of the contributions due applies, with a maximum of 60%. Once this limit is exceeded, default interest applies.
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How is default interest calculated
After reaching the maximum fine, default interest accrues for each day of late payment of contributions, calculated on the basis of the official reference rate established by the European Central Bank (ECB).
How to regularize payments
It is possible to settle payments spontaneously within 12 months from the scheduled deadline, before receiving requests or disputes from social security institutions. In this case, the regime of contributory omission applies, which involves less severe penalties than evasion
.
Administrative and criminal sanctions
In addition to civil penalties, there is a risk of administrative and criminal penalties if:
- Failure to pay social security withholding taxes: if the unpaid amount exceeds 10,000 euros per year, there is a risk of up to three years in prison and a fine of 1,032 euros. If the amount is lower, the penalty ranges from 10,000 to 50,000 euros
- Unreported recruitment or termination: failure to notify the INPS of employment or termination results in a fine of 200 to 500 euros per worker.
- Failure to register with the INPS: not registering the worker with the INPS involves a penalty ranging from 1,500 to 12,000 euros, plus 150 euros for each day of work.
- Recruitment of workers without a residence permit: involves a fine of 5,000 euros and up to one year of imprisonment for each worker.
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Domestic workers and mandatory contributions
Domestic workers include domestic workers, caregivers, babysitters, drivers, cooks, and cleaning staff. The social security contributions to be paid are calculated based on the salary and the number of hours worked. The rates are established by the INPS and vary depending on the type of contract (indefinite
or fixed term).
How are contributions paid
Contributions for domestic workers are paid online through the INPS portal, the IO app or the INPS Mobile app. Payments are made quarterly, with deadlines in the months of April, July, October
and January.
Risks for domestic workers who work undeclared
Even the domestic worker who works undeclared runs legal risks. Working without a declaration involves the loss of social security protection and, if the domestic worker receives state subsidies such as NASPI, she risks up to three years in prison for undue perception of disbursements to the detriment of
the state.
Calculation of penalties for late payments
If contributions are paid late but within 12 months from the due date, the penalty applied will be based on an annual interest rate. For delays of more than 12 months, the penalties are stricter and can reach 60% of the amount evaded
.
Suspension of contributions
In the event of a suspension of work due to maternity, illness or other valid reasons, it is possible to request the suspension of the payment of contributions through the INPS portal.
Failure to pay contributions for domestic workers and caregivers exposes the employer to significant penalties. It is important to meet deadlines and regularize any breaches to avoid legal and financial problems. The 2024 budget law has tightened controls, increasing the need to properly manage domestic work relationships
.