Unemployment protection for the self-employed and platform workers in Hungary

Abstract

This article analyses unemployment protection for platform workers and the self-employed in Hungary. Hungarian legislation lacks a separate, well-designed system for the self-employed and platform workers, who consequently fall under the general unemployment scheme. The Hungarian unemployment scheme is fundamentally a compulsory, Bismarckian-type of unemployment insurance financed by contributions, which acts as compensation for loss of work. The Hungarian legislation also contains a system of services and subsidies that could be considered as a separate protection scheme also addressing unemployment. In this case, the protection provided compensates absence of work, rather than a lack of work. This contribution presents the protection available under Hungarian law for the self-employed and platform workers, via an in-depth analysis of the entitlement conditions, contribution base, and the amount, duration and financing of the unemployment benefit. In this paper we also highlight the difficulties and consequences of the taxation regime for the self-employed and platform workers. As they can pay contributions based on favourable tax rules, these lower social security contributions result in lower unemployment benefits.