Unemployment insurance

Unemployment insurance contribution is a tax that finances unemployment insurance – meaning benefits for people who lose their jobs.

Unemployment insurance Distribution

Unemployment insurance is divided into two parts:

• Employee unemployment insurance (1.6%), which is withheld from the employee’s gross salary
• Employer unemployment insurance (0.8%), which is calculated from the employee’s gross salary similarly to social tax

While social tax is paid only by the employer, unemployment insurance is paid by both parties to the contract.

Unemployment insurance Benefit

Paying unemployment insurance contributions gives the right to unemployment insurance benefit if you lose your job through no fault of your own (such as redundancy).