NATIONAL LABOUR MARKET POLICIES
Basic Information Reports
1.3.5.2.Unemployment insurance contributions
Contributions to unemployment insurance are the most important source of income for the labour market policy budget. Practically all dependent employees whose monthly income exceeds the non-significant income level of ATS 3,830 (1998) are legally obliged to pay contributions. This also applies to apprentices in their final year, outworkers, persons participating in a vocational rehabilitation scheme, soldiers on fixed-term contracts with entitlement to further vocational training and border workers; public-sector employees are exempt from obligatory contributions.
Contributions to unemployment insurance - currently amounting to 6% of gross earned income (including supplementary payments) - are divided equally between employees and employers; the maximum basis of assessment is ATS 42,000 (1998) per month.
The contribution rate is fixed by the Federal Minister of Labour, Health and Social Affairs in agreement with the Federal Ministry of Finance and with the approval of the National Council's executive committee.
The Labour Market Policy Financing Act (1994) stipulates that the contribution rate is to be raised if predicted receipts do not cover predicted expenditure, where other revenue is calculable and the following are taken into account: the possibility of the AMS taking out loans, labour market trends and the average annual expenditure for the previous two years.
The contribution rate is to be lowered, on the other hand, if the AMS' assets (labour market reserve) exceed average annual revenue from contributions to unemployment insurance for the previous five years.
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