What are the consequences of undeclared work on my social security benefits?
July 10, 2023 | 60,00 EUR | answered by Fred Schönecker
Dear lawyer,
My name is Thomas Stamm and I have been working in a company for a few months where I am unfortunately employed illegally. Due to my financial situation, I was forced to take this job, even though I am aware that working illegally is against the law. Now I am worried about the implications this decision could have on my social security benefits.
My current situation is as follows: I do not receive an official salary, as my employer pays me in cash and does not deduct any contributions to social security for me. Therefore, I have no official proof of my employment and earnings. As a result, I am unable to pay contributions for pension, health or unemployment insurance, and thus have no entitlement to benefits from these social security systems.
My concerns are significant, as I do not know how working illegally will affect my future. What consequences could it have for me that I am not paying social security contributions and do not have official proof of my employment? Will my pension entitlements be affected? Will I receive no support in case of illness? And what will happen if I become unemployed?
I urgently request your advice and possible solutions to improve my situation. Are there ways to end my illegal employment and re-register properly? What steps should I take next to secure my social security benefits and safeguard my future?
Thank you in advance for your help.
Sincerely,
Thomas Stamm
Dear Mr. Stamm,
Thank you for your inquiry regarding your undeclared work and the possible implications on your social insurance benefits. It is understandable that you are concerned and seeking appropriate solutions. Undeclared work is illegal and can indeed have serious consequences for your future.
In terms of your social insurance benefits, it is important to know that through undeclared work, you do not contribute to pension, health, or unemployment insurance. This results in gaps in your insurance periods, which can later affect the amount of your pension entitlements. Similarly, in case of illness, you may not receive benefits from health insurance as you are not compulsory insured. In the event of unemployment, you also have no entitlement to unemployment benefits.
Therefore, it is urgently advisable to end your undeclared work and re-register properly. To secure your social insurance benefits, you should first inform your employer and request to be registered correctly and have social security contributions deducted for you. If this is not possible, you should promptly contact the pension insurance, health insurance, and employment agency to clarify your situation and take necessary measures.
There are various ways to improve your social insurance benefits. This includes, for example, paying arrears for past contributions to secure your pension entitlements. You can also inquire about voluntary insurance options to secure your health and unemployment insurance.
I strongly recommend making an appointment with a lawyer specializing in social insurance law to analyze your situation precisely and develop individual solutions. Only then can you secure your future and avoid potential negative effects of undeclared work on your social insurance benefits.
I hope this information has been helpful and I am available for any further questions you may have.
Best regards,
Fred Schönecker
