Household wage for cohabiting partners

In contrast to married couples, concubinage partners have the option of agreeing on and paying a so-called “household wage”. This is because a concubinage partner is not obliged to provide assistance and the social security situation of the partner who is solely responsible for the household can thus be improved. The household wage is considered taxable income from employment and is subject to social security deductions. The paying partner must prepare a wage statement and the “employee” must declare the income in the tax return.