If the employer is under an obligation to provide accident insurances to his/her employees, he/she shall also be liable to pay an unemployment insurance fee for his/her employees, except for employees under the age of 17 or over the age of 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 to the Unemployment Insurance Fund. Until 2013, unemployment insurance fees have been paid to the same insurance company that provides the employer with the accident insurance. Nowadays insurance companies handle only unemployment contributions concerning the year 2012 and earlier.
The employer’s unemployment insurance fee is determined on a staggered basis in accordance with the company’s total amount of salaries. The salary basis is the same as for accident insurances. The fee is determined annually by the Ministry of Social Affairs and Health. The employer’s unemployment insurance fee in 2014 is 0.75 % of the salary up to EUR 1,990,500 of salaries and for salaries in excess thereof 2.95 % of the salary.
The withholding of the employee’s unemployment insurance fee is done simultaneously with the payment of salary. The fee is determined annually by the Ministry of Social Affairs and Health. The unemployment insurance fee of employees in 2014 is 0.5 % of the salary. The employer’s unemployment insurance fee payable for a co-owner is 0.75 % and the employee’s unemployment insurance fee for a co-owner is 0.19 % of the salary paid to the co-owner.
The employer’s payroll accounting must show the amounts of all fees withheld divided by each employee. If the employer fails to withhold the unemployment insurance fee, the sum representing the fee is treated as part of the employee’s taxable income.
The employer shall pay his/her unemployment insurance fee at the beginning of the insurance period or during it as advance payments. At the end of the insurance period a countervailing charge is to be paid when necessary. The employee’s unemployment fee is collected in accordance with every payment of wages.