Unemployment insurance: conditions of entitlement

Unemployment insurance provides a benefit for people who lose their income and become jobseekers. However, entitlement to the benefit is not automatic – it depends on how long you were insured and whether you met the statutory conditions. This is often the biggest surprise for sole traders.

Who is insured

For employees, unemployment insurance is generally a compulsory part of social insurance. Self-employed persons (SZČO) do not pay it compulsorily, but they can take it out voluntarily. That is precisely why sole traders are often not entitled to unemployment benefit if they did not pay voluntary insurance while they were in business.

• employees – unemployment insurance is generally compulsory
• self-employed persons – only if they pay it voluntarily
• some work agreements (dohody) do not include unemployment insurance

Basic condition of entitlement

The key condition is a sufficient period of unemployment insurance within a set period before you are entered in the register of jobseekers. The law requires a certain number of years of insurance within the last few years. Check the specific lengths for the period concerned, as they may change.

Entry in the register

To be granted the benefit, you must be entered in the register of jobseekers at the Labour Office (ÚPSVaR) and apply for the benefit at the Social Insurance Agency (Sociálna poisťovňa). Without registration at the Labour Office, no entitlement arises, even if you otherwise met the insurance condition. It is therefore advisable to apply for registration immediately after your employment ends, because the date of registration also determines when you start receiving the benefit.

Amount and duration of the benefit

Unemployment benefit is paid for a period laid down by law (the support period), and its amount is based on your previous assessment base. A cap on the benefit applies, so even with a high income it does not exceed the statutory maximum. Check the specific support period and the cap for the current period.

• the amount depends on the previous assessment base
• a maximum daily cap on the benefit applies
• it is paid for a limited support period

When entitlement does not arise

Entitlement may not arise if you were not insured for long enough, if your employment ended in special circumstances, or if you are not entered in the register. In the case of repeated unemployment, it is also assessed whether, and to what extent, you have already drawn the benefit in the past.

Extended support period and specific situations

The law also provides for situations in which the benefit is paid differently from the standard way – for example, when you are re-entered in the register after a short period of employment, or when part of the benefit is paid out as a lump sum if the jobseeker decides to start a business. Likewise, if you take up employment while receiving the benefit, the payments are suspended and your unused entitlement may be preserved under certain conditions. These rules are detailed and change over time, so when making a specific decision we recommend checking the current conditions directly with the Social Insurance Agency or with an expert, so that you do not lose your entitlement unintentionally.

Summary

Unemployment insurance and entitlement to the benefit depend mainly on the periods you have worked and been insured. We recommend that sole traders consider voluntary insurance if they want to be sure of a benefit should they lose their income. At Bilvao, we will advise you on how to build up your insurance periods. Check the specific conditions and amounts for the current period.

Related articles: Sick leave for self-employed persons and sickness benefits, Contribution relief for new entrepreneurs, Contributions on dividends: when health insurance contributions are payable.

Frequently asked questions

Is a sole trader entitled to unemployment benefit?

Only if they paid voluntary unemployment insurance and completed the required insurance period. An ordinary self-employed person does not pay this insurance compulsorily, so without voluntary insurance there is generally no entitlement to the benefit.

How long do I need to have been insured to become entitled?

The law requires a certain number of years of unemployment insurance within the last few years before you are entered in the register of jobseekers. Check the exact lengths for the period concerned, as they may change.