Dom&Care Value – Why is this tool necessary?

The term “indirect care” refers to all daily and household tasks that, while essential for individual well-being, are not directly related to medical or personal care. This includes activities such as cleaning, cooking, ironing, and grocery shopping. Often perceived as mere “comfort” services, they are in fact fundamental for enabling dependent individuals—whether elderly, children, or people with disabilities—to live with dignity and autonomy.

Population aging, the increasing demand for home care services, and persistent gender inequalities present major challenges for policymakers. By 2050, the number of people requiring long-term care is expected to rise from 24 to 33 million. At the same time, labor shortages in the care sector are making it even more difficult to meet this growing demand.

Indirect care plays a crucial role in balancing work and family life, allowing family caregivers to free up time for employment or training. It is also a key factor in enabling older adults to remain at home, thereby reducing the costs associated with institutional care. However, undeclared work remains widespread in this sector, limiting social protections for workers and leading to significant tax losses for governments.

Challenges for policymakers

Policymakers face several key challenges :

• Assessing the actual demand for indirect care services and anticipating future needs.
• Encouraging the formalization of these jobs to combat undeclared work and ensure decent working conditions.
• Investing in targeted subsidy policies while maximizing positive socio-economic impacts, such as job creation and improved work-life balance.

In this context, our simulator serves as a decision-making tool, allowing for a precise calculation of the return on investment of subsidies dedicated to indirect care.

A tool based on accurate data and rigorous calculations

Our simulator offers a clear and transparent methodology for estimating the net cost of a solvency mechanism in the indirect care sector. It takes into account:

1. Gross costs – The amount required to make declared work competitive compared to undeclared work.
2. Direct returns – The fiscal and social contributions generated by declared employment.
3. Indirect returns – The positive impact on employment in other sectors, thanks to the time freed up for users.
4. Windfall effects – Jobs that would have existed even without subsidies, helping to distinguish actual benefits.

Calculating the socio-fiscal balance

The simulator estimates the socio-fiscal balance by subtracting the gross costs of subsidies from the return effects while adjusting for the windfall effect. A ratio above 1 indicates that public investment is profitable, whereas a ratio below 1 suggests a deficit.

Simple steps for clear results:

1. Discover your data – Access local data on undeclared indirect care work, average wages, and applicable tax rates.
2. Adjust parameters – Modify default assumptions, such as structural costs or windfall effects.
3. Run the calculation – The simulator generates detailed results on gross costs, return on investment, and economic benefits.
4. Analyze the results – Visualize the data through clear infographics and compare results across different countries.

The Dom&Care Value simulator provides clear, data-driven evidence that funding indirect care or domestic services is not merely a cost for public finances—it is a sustainable and strategic investment.

1. A multi-benefit investment

The indirect care simulator offers policymakers a 360-degree view of the impact of their policies. Domestic services are not just a matter of comfort; they address real and essential needs for families and dependent individuals. By subsidizing these services, governments act on multiple fronts

• Reducing social and gender inequalities
  Women, who are often overrepresented in domestic tasks, can more easily access the labor market.
• Improving quality of life
  Beneficiaries, whether elderly individuals, family caregivers, or working households, can better balance their professional and personal lives.
• Preserving the autonomy of older adults
  Indirect care is essential in helping individuals remain at home, delaying their transition into costly institutional care.

2. A response to real needs, not a luxury

The formalization of indirect care is based on a recognition of social and economic realities. Domestic tasks are not secondary; they form the foundation of a dignified and autonomous life for millions. Failing to structure and finance these services would perpetuate inequalities and ignore demographic and social challenges.

3. A major economic driver

The positive impacts of investing in indirect care far exceed the initial financial outlay

• Every euro invested in subsidies generates tax and social revenue through formal job creation.
• Encouraging declared work reduces reliance on undeclared employment.
• Expanding indirect care services boosts the labor market and relieves pressure on social welfare systems (unemployment benefits, social aid, etc.).
• Creation of sustainable jobs – Indirect care generates local employment, often accessible to those far from the job market.
• Optimization of public spending – Reducing the need for expensive institutional care results in significant economic returns.

4. Improving working and living conditions for professionals

Subsidizing indirect services helps to:

• Formalize and secure jobs
  Domestic workers, often employed informally or precariously, gain full social protection (retirement benefits, health insurance, unemployment coverage, etc.).
• Stabilize incomes
  Moving from informal to declared employment provides workers with regular, better-paid earnings.
• Encourage professionalization
  Public support structures the sector by promoting certified training and recognizing these essential professions, improving career prospects.

5. Recognition and dignity for essential professions

Domestic care professions are often undervalued. By implementing solvency mechanisms:

• These jobs gain visibility and social recognition.
• Workers become key economic contributors, actively supporting the formal economy and social well-being.
• Recognition helps combat stigma and enhances dignity in the workplace.

6. Creating economic and social opportunities

Support mechanisms also yield long-term benefits for workers:

• Reducing poverty and job insecurity
  The domestic sector, often marked by gender and status inequalities, can become a driver of economic empowerment, particularly for women and migrant workers.
• Providing personal development opportunities
  With stable, declared jobs, workers can better plan for the future, access additional training, and explore career mobility.

Investing in indirect care means:

1. Addressing the real needs of families and dependent individuals.
2. Boosting job creation and generating tax revenues.
3. Improving working and living conditions for care professionals.

Domestic care is not a luxury—it is a social necessity that supports families, strengthens the economy, and values essential professions. By fully recognizing the contribution of workers and ensuring decent conditions, we transform a precarious sector into a pillar of solidarity and sustainable economics. This approach proves that investing in people benefits society as a whole.

A sustainable policy for future generations

With an aging population, investing in indirect care is a long-term solution to meet the growing demand for home support. This investment not only ensures economic returns for the state but also improves citizens’ quality of life.

The Dom&Care Value simulator is not just a technical tool-it is a strategic platform that demonstrates that indirect care is not an expense, but an economic and social asset. By investing in this sector, we build a fairer, more inclusive society that is better prepared for future challenges.

With an aging population and increasing home care needs, investing in indirect care is not only an economic necessity but also a response to social and gender inequalities.

This tool helps policymakers understand the effects of their policies, justify subsidies to citizens, and direct investments toward sustainable solutions.

The indirect care simulator is much more than a calculation tool—it is a catalyst for more equitable, effective, and worker-friendly public policies. Use it to turn sector challenges into socio-economic opportunities.