Unemployment insurance: rate, base and arithmetic

Rate and base

The rates are written in Article 9.0 of the Law on Unemployment Insurance:

• 9.0.2: the employee (the insured person) pays 0.5% of salary.
• 9.0.1: the employer (the policyholder) pays 0.5% of the calculated payroll fund.

The article has no threshold, no ceiling and no sector difference. The rate is the same in the state, oil-and-gas and private sectors and applies to every manat of salary.

Some worked figures

The rate applies to the whole salary, so the contribution grows in direct proportion to pay:

• At 1,000 ₼, the employee pays 5.00 ₼ and the employer 5.00 ₼.
• At 2,500 ₼, the employee pays 12.50 ₼ and the employer 12.50 ₼.
• At 10,000 ₼, the employee pays 50.00 ₼ and the employer 50.00 ₼.

The employee’s contribution is one of four deductions. With the other three, the arithmetic looks like this:

When it is paid

Unemployment insurance is paid with the salary, no later than the 15th of the following month (Article 10.3 of the Law). The employee does not pay separately: their part is withheld from the salary, and the employer’s part comes on top of it as part of the employer’s cost.

What is not confirmed

• A technopark employee may choose four times the minimum wage as the social insurance base. It is not confirmed that unemployment insurance moves to this base: the Law on Social Insurance speaks only of social insurance, and the unemployment law has no such base. The calculator keeps it on actual salary.
• Whether the contribution applies to payments under civil-law contracts is not confirmed; the calculator does not model them.

Questions and answers

Related pages

• Gross and net
• Income tax
• Supergross
• Social insurance
• Salary deductions