CAEN Code 97: Activities of Private Households as Employers of Domestic Personnel
CAEN Code 97 is a special macroeconomic category that refers to activities carried out by private households as employers of domestic personnel. This includes the direct employment of individuals who provide domestic services such as cleaning, cooking, childcare or elderly care, gardening, and other household maintenance activities. Unlike specialized companies, here the household acts as the employer, and staff are paid directly. In Romania, this category reflects an important informal labor market, which can be formalized through individual employment contracts. Although it does not generate significant macroeconomic value in terms of turnover, it contributes to the well-being of families and the creation of local jobs. The main challenges for entrepreneurs (households) employing domestic staff are labor legislation, taxes and social contributions, as well as unfamiliarity with administrative procedures. However, formalizing these employment relationships brings benefits both for the employer (tax deductions, legal certainty) and for the employee (social insurance, pensions). In the context of digitalization, online platforms facilitate finding and hiring domestic staff, but compliance with regulations remains essential. As Romania's economy develops, the need for formal domestic services will increase, and CAEN Code 97 will remain relevant for the correct classification of these activities.