France’s Personal and Household Services (PHS) system counts to the most developed in the European Union. As the prevailing employment form in the sector is direct employment by families, public policies have been mainly directed towards employee professionalisation through training and certification and incentives to formalise undeclared employment relationships.

With respect to the latter, several financial instruments have been developed in order to both simplify procedures and offer tax incentives for the registration of direct employment between individuals. In this field, the new tax incentive programme, that combines the deduction of the private employee’s income tax and social security contributions from the employer with the simultaneous deduction of part of this sum (at present 50 per cent) from the employer’s taxable income represents the most promising instrument to reconcile employee and employer rights and obligations with the state’s interest in regulation of the sector.