Unemployment Insurance Fees

Unemployment insurance contributions are used to fund, among other things, unemployment benefits and pension entitlements. The employer is obligated to pay the unemployment insurance contribution when the total amount of wages paid exceeds a certain euro threshold during the calendar year. The obligation to pay the unemployment insurance contribution applies to employees aged 18 and over but under 65.

The unemployment insurance fee is divided into two parts, the employee’s and employer’s fee. The employer is required to pay both fees.

The employer’s unemployment insurance fee is determined on a staggered basis in accordance with the company’s total amount of salaries. The fee is determined annually.

The unemployment insurance contribution is paid based on the actual salary payment data reported to the Incomes Register. The employer only needs to report the salary data to the Incomes Register and pay the invoices sent by the Employment Fund. No separate notifications to the Employment Fund are required. The employee’s unemployment insurance contribution is withheld with each salary payment.