Some people find always tricks to help themselves during times of economic crisis. Legions of employees have lost their jobs. Glamorous investment bankers have been dismissed and experience the struggle of life now. The time of big bonuses is for many of them over. The incomes shrink, while the expenses for the mortgages remain high. Many are forced to sell their homes and luxurious cars. Well paid bankers move in jobs as waiters or drivers.
People who have acquired practical skills or have learnt a craft are in the best position in these days. They do not need to stay just at home after their dismissal. They do not just suffer from the exchange of their salary with the lower payment from the unemployment insurance. They find a way to serve in a cash-in-hand job. Other terms for this kind of informal jobs are clandestine employment or moonlighting. Statistics show that the rate of this kind of occupation varies between 0.5 and 20 percent of the gross domestic product within the western, industrialised countries. The syndrome of cash-in-hand jobs usually increases during economic recessions and it decreases during phases of economic booms.
What are the professional skills that elevate the chance to do a cash-in-hand job? Office cleaning is a widespread way to make money in an informal job for people who are ready to do this job. There are, of course, other professions that pave the way to moonlighting: e.g. mechanist, electrician, plumber, bricklayer. There are always homes, appliances, home electronics and cars that have to be repaired. Many people are ready to pay cash on hand and to circumvent the additional expenses of social insurances and taxes. Tailors can made or repair cloths by moonlighting. Some people take their pick up and provide some extra transports during their leisure time after their formal employment.
Cash-on-hand jobs offer a lot of opportunities to get some extra money besides of the regular work or payment from social insurances. No taxes are raised on the income. Cash-on-hand jobs replace in many cases the income of a regular job. People who do that kind of work have to consider following: It is risky, because it is illegal. They and their customers can be fined by the authority. The workers are not insured against the risks of an accident. This causes serious problems in a case of an accident on the job. Their salary does not contribute the necessary fees to the pension or unemployment insurance. Thus they risk not receiving appropriate payments from a pension when they become old.
The best way is to do all the above mentioned services legally and to pay taxes and social insurance fees for it. The described crafts and skills as above are also suitable to work fully as a freelancer or to supplement the basic salary of a regular job.
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Liliane Waldner
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Liliane Waldner is a business economist. She has attended the board of several public entities companies and pension funds, some of them dealing with the financial markets. Her website is:
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