On February 18th, 2025, the PHS Social Partners—EFFAT, EFFE, EFSI, and Uni Europa—hosted an online discussion as part of the EU-funded PHS Dialogue Project. The event focused on sharing best practices and initiatives to address the issue of undeclared work in Personal and Household Services (PHS). Drawing over 190 participants from 22 countries, including representatives from employer organisations, trade unions, experts, and policymakers, the webinar was a resounding success. It underscored the sector’s firm commitment to promoting fair labour practices and driving positive change.

The distinguished panellists reached broad consensus on several points, chief among them the critical importance of collaboration between all stakeholders to ensure fair working conditions, better rights for workers, and a stronger future for this vital sector.

From Policy to Practice: Tackling Undeclared Work in the PHS Sector

With 6.8 million undeclared workers across the European Union, tackling undeclared work in the PHS sector is a key issue. Understanding this challenge is essential for addressing the broader issue of undeclared labour in the EU. Marianna Baggio, Research Officer on Social Policy at Eurofound, presented an upcoming study, Undeclared Care Work in the EU: Policy Approaches to a Complex Care Economy Challenge.

The study highlights the need to define care work—both direct and indirect forms—more clearly in order to better address undeclared care work and strengthen protections for workers. The research examines undeclared care work through three main areas:

• Characteristics: Profiles of caregivers and recipients, their vulnerabilities, tasks, workplaces, and pay
• Challenges: Physical and mental strain, financial difficulties, barriers to accessing services, and lack of pensions
• EU policies: Measures to formalise care work or prevent undeclared practices

Eurofound’s study stresses the importance of specific actions in tackling undeclared care work in the EU. These actions include awareness campaigns, social vouchers, tax incentives, and inspections. A notable example is Belgium’s introduction of Social Vouchers in 2001, a scheme designed to create legitimate employment opportunities while combating undeclared work. Social Vouchers allow individuals to hire workers from approved companies for various household tasks, such as cleaning, grocery shopping, and cooking.

Participants agreed on the need to expand such measures, which have proven effective in addressing undeclared work and improving working conditions for PHS employees.

EU Initiatives and Opportunities to Combat Undeclared Work in the PHS Sector

Several EU initiatives are currently in place to address undeclared care work. MEP Idoia Mendia stressed the importance of preparing for Europe’s future, while Kostas Koutsogiannis from ELA highlighted the need for collaborative efforts and learning from past experiences to shape a better future.

Key takeaways from the presented EU initiatives and opportunities included:

• Domestic work, especially indirect care, should be recognised as part of the professional care sector
• With Europe’s ageing population, home-based care is becoming increasingly vital
• Making care work an attractive profession is essential to ensure high-quality services
• Care services must be accessible and affordable for all individuals

In closing, Francesco Corti, from the Cabinet of Executive Vice-President Roxana Mînzatu, reiterated the importance of understanding the sector’s unique characteristics and the need for continued collaboration among policymakers, the industry, and social partners. He also emphasised the importance of robust data collection on undeclared work and the measurement of the return on investment in the PHS sector.

On behalf of the PHSDialogue social partners, EFSI extends its sincere thanks to the speakers for their insightful presentations and to all participants for their valuable contributions.