Bridge to security: Exploring unemployment insurance for solo self-employed in Estonia

Abstract

The COVID-19 crisis highlighted the need for better access to unemployment insurance, particularly for solo self-employed workers. Traditionally seen as entrepreneurs bearing their own risks, the line between employment and entrepreneurship for solo self-employed has blurred, raising questions about adequate social protection. This shift is largely attributed to the rise of platform work, often linked with dependent self-employment and a precarious social security landscape for workers. In Estonia, where solo self-employment is increasingly common, access to unemployment insurance and the level of protection depends on the workers’ awareness and intent, as well as the approach adopted by task-mediating platforms in the case of platform workers. While the self-employed, including platform workers, can access insurance by opting for certain legal forms of work and making regular contributions, effective access remains limited. Low and irregular income poses eligibility challenges, and certain legal forms of self-employment can hinder access to benefits, despite eligibility through other means. In the long run, these challenges could undermine the sustainability of Estonia's social security system, emphasising the critical need for comprehensive reforms to ensure equitable access to unemployment insurance for all self-employed individuals, including those engaged in platform work.