Unemployment Insurance
Unemployment insurance (ALV) is a state institution and compulsory for all employees. The contributions are deducted directly from employees' monthly wages. The employer covers half of the contributions. Self-employed persons cannot receive unemployment insurance. Persons who become unemployed receive monthly compensation for loss of income (unemployment benefits, Arbeitslosengeld) from the unemployment fund. If, when, and how much money is paid depends on various factors. For example, duration of employment or reasons for unemployment.