Töötuskindlustusmaks

Töötuskindlustusmaks, commonly translated as unemployment insurance contribution, is a mandatory payment in Estonia that forms the basis of the unemployment insurance system. It is levied on both employers and employees, with the primary goal of providing financial security to individuals who lose their jobs. The contributions are calculated as a percentage of an employee's gross salary, with separate rates for employers and employees.

The collected funds are managed by the Estonian Unemployment Insurance Fund (Töötukassa). This fund then uses the money to pay out unemployment benefits to eligible individuals who have lost their jobs through no fault of their own and meet certain criteria, such as having been employed for a minimum period. In addition to unemployment benefits, the fund also finances various services aimed at helping unemployed individuals find new employment, including retraining programs, vocational guidance, and support for starting a business.

The rates for the töötuskindlustusmaks are subject to change and are determined annually by the Estonian Parliament (Riigikogu) based on the financial needs of the Unemployment Insurance Fund and the economic situation of the country. Both employers and employees contribute to the system, ensuring a shared responsibility in maintaining the social safety net. The obligation to pay the contribution is linked to employment and ceases when employment ends.