Catalog on Bogus Self-Employment
People often try to work as self-employed individuals in order to avoid paying social security contributions. This often goes wrong when the situation constitutes so-called “bogus self-employment.”
Drawing the line is difficult. This is because the two vague criteria—subordination to instructions and integration—are decisive. A catalog published by the German Pension Insurance provides a basis for an initial assessment:
Pseudo-self-employed individuals are generally
- meter readers for gas, water, electricity, and heating
- Emergency room doctors, as they are usually integrated into the organization
- Waitstaff in restaurants
- Teachers, if they are integrated into school operations due to the assumption of ancillary duties
- Trade show hostesses
- Bus drivers without their own buses
- Shelf stockers, unless they are also responsible for product placement
- Professional athletes
- Taxi drivers without their own vehicles
- Restroom attendants
- Newspaper delivery people
The following are generally considered self-employed
- Teachers and lecturers at universities and music schools, provided they have no additional duties
- Driving instructors, provided they are authorized to operate a driving school
- Childcare providers
- Doctors, dentists, and pharmacists, provided they are not subject to restrictions that go beyond the use of the practice premises, adherence to office hours, and billing on behalf of the principal
Outlook: In cases of doubt, it is advisable to initiate a status inquiry procedure, preferably before commencing the activity. The competent authority will then issue an opinion on the specific case and provide binding guidance for the future.
